Tax Credits £5000 demand!!

[spinningfish]

Hello all

 

During the tax years of 2010 and 2011, I claimed Working Tax Credit as I was self-employed, on a low income and worked the required amount of hours.

 

Last year HMRC decided to review my case, and as I was not being paid an hourly rate, and being paid a lump sum per invoice, I was no longer entitled to WTC, even though I could easily show I was working the required number of hours weekly.

 

I did not have the stomach, nor the time, to keep arguing the toss with them so allowed my WTC to stop.

 

Just yesterday a bill from HMRC for just shy of £5,000 landed on my mat, asking for immediate payback or debt collection! Being self-employed they all my address details and this is the first bit of correspondence I've had asking for payback to something I was genuinely entitled to!!

 

They have not given me the option to contest this on the letter, but I darn well will. I didn't steal this money - I needed it when business was waning and I have worked bloody hard to improve my business in challenging times.

 

Hopefully, one of you lovely people can offer some advice of where to begin...

[spinningfish]

Sorry to bump...

[honeybee13]

Hello there.

 

I'm sorry you haven't had any replies.

 

Have you been provided with a detailed calculation of why they think you owe the money?

 

My best, HB

[spinningfish]

Nothing at all. Just a one page demand with the total amount.

 

Many thanks

[honeybee13]

Thank you for that.

 

It's not something I know a lot about, but I'd have thought you're entitled to see how they've worked out the amount they say is owed. I think it's worth asking. Is there a contact number on the letter they sent you?

 

I wonder if the CAB might have experience of dealing with this sort of thing. Sometimes they can speak to HMRC for you.

 

HB

[spinningfish]

Thanks, I'll drop them a letter to see how they've come by that calculation and go from there.

 

I'll let you know...

 

Many thanks

[Old Cogger]

Hang on I had a Revenue Demand once for £5,000, as I had started part time business after not making much money after 18 months I gave up but held accounts for the period, I then received one of those demands, and went into to Revenue and pointed out the accounts for that period and they copies and stated well the £5,000 was a general figure for which we expect to be adjusted in regards of actual circumstances/accounts and relevant allowances. Basically it is a figure they churn out as they have no [previous idea of any figure to start on, so you will have to shows invoice details etc. no doubt. They wrote mine off as it was a break even situation.

[spinningfish]

Hello there

 

I was fully entitled to and received WTC during 2010 and 2011.

 

Last year, out of the blue, I received a demand for nearly £5,000 for allegedly overpaid WTC during 2010-2011. I thought this was odd and called them and they advised they didn't receive my proof of entitlement at the time. Very strange as they had had everything at the time. I sent it all in again and didn't hear from them again, so thought that was that.

 

Last week I received the same demand again and couldn't believe it. They have had all my proof twice now, but the only communication I get seems to be a yearly demand.

 

To add insult to injury, they have already passed my account to debt collectors Fredrickson International, who are also bombarding me with texts and calls.

 

To say I'm livid is an understatement!! I seemingly need to trawl through all my 3-4 year old paperwork AGAIN!

 

I need to deal with this once and for all, so was wondering what my best course of action is? I would like to communicate with someone more senior at HMRC. It's really not on!!

 

Any help would be very much appreciated.

 

Many thanks

[Consumer dude]

Send an SAR, that way its all formal, photocopy and send by recorded delivery..

[ims21]

I would also add that you have no obligation to deal with Freds. You can either ignore them or write to them telling them that you will not deal with a business such as theirs.

[spinningfish]

Thanks for the info guys. I sent two letters to HMRC - one a dispute letter (see below) and an SAR. Both signed for on the 14th July 2014.

 

The crux of the dispute letter was the following:

 

"I dispute responsibility for all alleged tax credit overpayments in my name. Please provide a complete breakdown of how these alleged overpayments occurred, what changes and calculations were made to these awards, where you got the information from for these calculations and all other figures involved including current balances.

 

As I am now disputing the alleged overpayments, all threats to pursue ‘further action’ must now cease as per your own code of practice (COP26)."

 

Guess who's still calling and texting? Guess you sent me a Letter Before Action this morning? You got it - Fredricksons.

 

There are words I'd like to use to describe them, but I'd offend even the hardest of ears...

[spinningfish]

Thanks for the info guys. I sent two letters to HMRC - one a dispute letter (see below) and an SAR. Both signed for on the 14th July 2014.

 

The crux of the dispute letter was the following:

 

"I dispute responsibility for all alleged tax credit overpayments in my name. Please provide a complete breakdown of how these alleged overpayments occurred, what changes and calculations were made to these awards, where you got the information from for these calculations and all other figures involved including current balances.

 

As I am now disputing the alleged overpayments, all threats to pursue ‘further action’ must now cease as per your own code of practice (COP26)."

 

Guess who's still calling and texting? Guess you sent me a Letter Before Action this morning? You got it - Fredricksons.

 

There are words I'd like to use to describe them, but I'd offend even the hardest of ears...

[blondebubbles]

They still recover any overpayments during the dispute process.

 

They no longer suspend it.

[spinningfish]

Really? Amazing how our government attempts to regulate other financial institutions but falls short when it's right under their noses.

 

Well, they can sing for it as far as I'm concerned.

[renegadeimp]

Dont just ignore them. If they take you to court they would likely win.

[spinningfish]

Dont just ignore them. If they take you to court they would likely win.

 

Another poster above suggests I ignore them, so now I'm a bit confused.

 

Also, how would they win in court if my evidence stacks up that I was fully entitled, I've sent my evidence before, and was ignored, and I am disputing this. Surely there must be something in law that if it under dispute recovery action should be stayed?

 

If I contact these people I will have to make payments, effectively acknowledging a debt I don't acknowledge!

[renegadeimp]

Nope. Keep pushing to find out how they came about to the amount you allegedly owe. If DCA's come on the scene, tell them to do one. Freds are one of the lowest rated DCA's and rely on threats and intimidation. They couldnt care less about what you say.

 

All they see is the big number on the spreadsheet and they get greedy.

[spinningfish]

Nope. Keep pushing to find out how they came about to the amount you allegedly owe. If DCA's come on the scene, tell them to do one. Freds are one of the lowest rated DCA's and rely on threats and intimidation. They couldnt care less about what you say.

 

All they see is the big number on the spreadsheet and they get greedy.

 

Thanks for the advice. How do I go about telling them to naff off and is it them I should be asking how they arrived at that amount?

 

Really appreciate your help.

[renegadeimp]

Send a prove it letter or keep pushing with HMRC. It is their responsibility to prove you owe a debt. Not yours to prove you dont.

[spinningfish]

Send a prove it letter or keep pushing with HMRC. It is their responsibility to prove you owe a debt. Not yours to prove you dont.

 

Awesome! I'm on it.

 

Thanks again

[spinningfish]

Hi Guys

 

Had the SAR pack back, plus phone recordings. Got a load of stuff to go through, but the phone recordings pretty much are just myself calling with other enquiries, so nothing to report there.

 

HMRC have NOT responded to my dispute letter, despite it being signed for back in July. Fredrickson continue to bother me with calls every day, but I've now started making small payments directly to HMRC.

 

Should I write again, or initiate some kind of an escalation?

[blondebubbles]

Hi Guys

 

Had the SAR pack back, plus phone recordings. Got a load of stuff to go through, but the phone recordings pretty much are just myself calling with other enquiries, so nothing to report there.

 

HMRC have NOT responded to my dispute letter, despite it being signed for back in July. Fredrickson continue to bother me with calls every day, but I've now started making small payments directly to HMRC.

 

Should I write again, or initiate some kind of an escalation?

 

The normal tax credit helpline can check the progress of any dispute and advice of current timescales.

[spinningfish]

The normal tax credit helpline can check the progress of any dispute and advice of current timescales.

 

Oh. That was a lot easier than I was expecting!

 

I'll call them tomorrow. Thank you.

[spinningfish]

So, after four months they finally replied to my dispute letter and it looks as though they're giving me the option to prove I was working 30 hours per week. In fact, this is the first time that I have actually got to the bottom of why they decided I was ineligible. They claimed they had never received any proof, despite me sending it in twice.

 

The question is, how on earth do I prove everything I did during a working day four years ago? I know what I did, because it's the same as I do now. Can I prove it? With difficulty.

 

Letter below:

[blondebubbles]

If self employed, aren't you supposed to keep records for the last 5 tax years or something?