Tax credits overpayment

[jenni_g]

Hello I need a bit of advice regarding recent communication from a debt collection agency for a tax credits overpayment. The amounts overpaid are as follows: £2290.38 for CTC for period ending 10.10.08 and £363.74 for CTC for period ending 6.4.09.

 

I have called the tax credits helpline and they have confirmed the amounts. I asked how this has occured as I have always kept them informed. The person I spoke to told me that I had not informed them in 2008 when I entered a new relationship. I cannot be 100% sure that I informed them, but I am positive I did. My partner was claiming job seakers allowance at the time, and we made joint claims for everything. Since then, my partner is now self employed. We have continued to receive ctc.

 

This money is being reclaimed from me, as they say it was paid to me as a single claimant. They have sent me a copy of my award notifcation from June 2008, and a copy of a letter dated 1.5.2009 stating that due to a change of circumstances they are no longer paying me any ctc. None of this makes any sense to me at all? Even if I did fail to inform them that I was in a new relationship, surely we would have still qualified for CTC as we were in receipt of JSA. I know that we only ever received one lot of CTC every week.

 

What is my next move with this? Do I inform the DCA that I am in dispute of the amounts?

 

Thanks for any help you can offer me.

[EagerElephant]

I think you should tell the DCA that the debt is in dispute and explain briefly why - for example you are looking into the cause of the Overpayment.

 

Did you not keep any of your Tax Credit award notices?

 

You are correct in saying that you and your partner would have been entitled to the same amount whether you were single or a couple but that is not really the point - if you claimed as a single person but you were a couple then this was an incorrect claim which is why you have an Overpayment.

 

Unfortunately notional offset which is where they give you an Overpayment but then input the change of circs they should have had which cancels out some of the Overpayment did not start until Jan 2010.

 

I think you need to write to Tax Credits about this - the letter from the DCA won't be the first letter you have had about it. It takes months before they pass the debt on.

 

If you don't have them you need to ask Tax Credits for all your award notices and any letters you were sent. You could also ask for a Freedom of Information on your Tax Credit notes as this should show when you called to report your partner had moved in - this will cost £10 though so maybe best to request as normal first and if you don't get the required info do this.

Once these have been supplied you can work out what really happened.