WTC's and demanding overpayment be paid.

[bedofweeds]

Last year Feb 2011 I ceased work altogether. WTC's were paid up to March 2011 (4 week run on).

 

Sent all of the details of income to them in July 2011 (2010/11).

 

I then noticed that they had not included the disability element so appealed against the final award letter in Sept 2011.

 

I then received £800 paid straight into the bank which I presumed was the disability element money that I was owed for 2010/11. A few weeks later followed a letter that said that my 2011/12 award was provisional and this payment represents April 2011 - Sept 2011.

 

uhhh - I'm not entitled to this money! My claim ceased in Feb 2011???

 

 

Fast forward - HMRC have admitted full responsibility for the mess and that it had nothing to do with me.

 

Anyhow a few weeks later I started getting demands to repay this £800. Thinking that it will sort itself out and call it quits - they owed me money for 2010/11 for the disability element V I owe them money for the error that HMRC caused.

 

Never heard anything about the disability element payment.

 

Anyhow, debt collectors are now involved. oops sorry missed out the bit about the letter saying that if it isn't paid bt 2/10/13 they have instructions to issue a Statutory Demand, whatever that is.

 

Telephoned Tax credits today and eventually got to speak with a lady in the overpayments section. First of all she treated me as a [problem]mer then after reading the file she was visibly shocked. Her words were that if ever there was a case of Official Error then this is it - what has happened to the dispute that you must have lodged?

 

After explaining that I hadn't lodged anything and viewed the whole thing that they owe me £800 and I owe them £800, might as well call it quits.

 

No she said, HMRC are definitely at fault here and you should not have to repay the £800 + you are also owed another £800. If you had disputed it it would have been written off! As it is as you haven't objected to their demands you will unfortunately have to repay it now - you are too late to dispute it.

 

Is there a time limit by which you have to submit a dispute? Surely the tax man can't ask me to repay something that they themselves are admitting isn't even collectable?

[bedofweeds]

Update

 

They have only gone and done it again!!! Went to the bank this afternoon to check the balance and what do I find - another £936 had been paid in by BACS. I checked the originating source with the bank and it came back - 'Working Tax Credits'!!!

 

What are these idiots doing paying me more money that I am not entitled to? Well this gets added to the other £800 they paid me in error and possession is 9 points in the law of ownership!

 

Maybe I'll get another one next month - we will be able to afford a good holiday courtesy of HMRC next year!!

[Sparkles1]

It's your lucky day! From what you have said and been told, this is an Official Error, as confirmed on the phone to you. Official Errors are not recoverable. I have won a case on this and will help if I can. The best way of disputing this is by providing them with the written evidence.

[Mr.P]

Put the money in to a high interest account (if there is such a thing any more). When they come knocking, demanding the money is repaid, lodge a formal appeal citing "official error" and hang on to the funds for a few months longer. If you end up having to repay at some point in the future, at least you will have the money available and it will have accrued a few pounds in interest.

[bedofweeds]

Put the money in to a high interest account (if there is such a thing any more). When they come knocking, demanding the money is repaid, lodge a formal appeal citing "official error" and hang on to the funds for a few months longer. If you end up having to repay at some point in the future, at least you will have the money available and it will have accrued a few pounds in interest.

 

Thanks for that. Yes I do believe it is an Official Error. I was asked yesterday to lodge a form with the 'Dispute & Overpayments Team' regards the debt. Looks like Christmas has come early!

[Mr.P]

Yes I do believe it is an Official Error. I was asked yesterday to lodge a form with the 'Dispute & Overpayments Team' regards the debt.

 

Before you spit roast Bambi (and for the benefit of anyone else reading this thread), make sure you get conformation in writing that the payment(s) are down to "official error" and are not recoverable. Keep this letter safe, and if they come chasing after the money in ten years time, you have a defence.

[bedofweeds]

Before you spit roast Bambi (and for the benefit of anyone else reading this thread), make sure you get conformation in writing that the payment(s) are down to "official error" and are not recoverable. Keep this letter safe, and if they come chasing after the money in ten years time, you have a defence.

 

Of course I will - in a glass frame nailed to the wall reminding me everyday that at least I had one up on the bloody government just the same as the MP's who have their tax paid for by the State on top of their wages and expenses!!