HELP!! HUGE Tax Credit Overpayment

[suemumof3]

In May I stopped my tax credit claim due to my husband and I moving back in together after a 3 year separation. What I stupidly forgot to do is my renewal, my thoughts were I am no longer claiming so dont need to renew.............WRONG!!!!

 

Now they have sent me an overpayment letter for £1158.62, this covers the payments I got from April to May, OK I understand that I shouldn't have had those so thats fine, can't pay all at once so following advice on letter call to set up payment plan.

 

The call starts well and I am told its about £35 per month over 3 years, yep no problem with that. What happens next almost gives me heart failure. I am then asked my personal details and upon confirming them the advisor asks me if I am already on a payment plan which I am not. He then goes on to tell me that there are a further 2 overpayments showing on my file, one for £4076 and one for £5500 for years 12/13 and 11/12 respectively!!!

 

After being passed from pillar to post it transpires that my failure to renew and provide all my childcare info has apparantly pulled up loads of question marks and these overpayments are where they have now decided I wasnt entitled to childcare for those periods.

 

Firstly for both of those periods, I was one of the people being reviewed and had to provide all info they requested. To do this I allowed them to contact my child minder (first year) by phone and my childcare provider sent them a letter confirming my payments (2nd year) and for my income they looked on their tax records so it was accurate.

 

I have now completed my renewal so all figures are updated and have written to dispute the other overpayments. Is there any chance they may change their mind? If not I am quite literally pooping myself as they have told me they only allow 3 years to repay it which will put me in a financial meltdown!

[moneycantbuyyoulove]

Deep breath! Mean hmrc!

 

First of all I think they are lying to you about only being allowed to pay it off over 3 years. I am paying my overpayment, where they decided my childcare wasn't valid, off over 10 years. It sounds as if you have a case for appeal on the other ones. Negotiate paying it back over 10 years ( if you offer to pay off 10% I think they don't look into affordability). Sorry, that's the extent of my knowledge. Good luck!

[suemumof3]

I am still very angry with them, but hopefully they will have received my dispute letter (sent by recorded mail) today and this has also been sent to my MP, not sure what good it will do but suddenly telling someone who thought they were getting out of debt that they now have another £10,000 worth is not on

 

Does anyone else have any ideas on what I can do, preparation is my best course of defence I think

[suemumof3]

I sent my letter to my local MP and he has taken my case up with them, fingers crossed some good will come of it. The least I woud hope for is that this is seen as bad practice and a review of how they inform people of overpayments is done.

[moneycantbuyyoulove]

That's good news. I found it hugely helpful to speak to someone who deals with hmrc regularly helping companies restructure their debts. They are a strange beast. The one thing I've learnt is that they can be very nice, but they don't always know the law so it's pot luck who you get. Either that or they are shameless liars! They really tried to make my partner pay my overpayment. It's an overpayment that they shouldn't be making me pay anyway, and they have absolutely no right to try and make him pay it. However, once I'd explained that to them they backed down. It helped that our finances are legally separate and formally demarcated by a trust. You have to get them on side. If you are a higher rate tax earner then as far as they are concerned you are a bad person and should be giving them money. If they think you are a benefit cheat then they will hound you to hell in a handcart. But if they think you are genuine and struggling they can be quite helpful. You can read the results so far of my case on another thread next to this one. Good luck with yours and try not to worry about it. Unfortunately we all have to live with the inconsistencies of hmrc so it's a good idea to become resilient to it. I am gradually starting to not have a panic attack every time one of their brown envelopes arrives!

[suemumof3]

Today has been absolutely awful. Had 2 letters from HMRC demanding payment of £5000 & £4500 by 7 December 2013 dated 28 October 2013. I know that I should of been expecting it but an hour earlier I fell down the stairs and was (still am) in a mess.

 

I rang the "helpline" (as much help as a chocolate teapot!) and they were just horrible. I discovered that my complaint had been logged on 24 October and my dispute/appeal of the overpayment was logged with the CEO's office on 28 October (same day as letter) and that they will not put a hold on these horrible letters, though they have 17 weeks to deal with my letters.

 

They have suggested putting a payment plan in place to stop the letters, but I am concerned, very concerned that this would show my "admission/ownership" of the overpayment which I strongly disagree with.

 

I was told that I could pay back over ten years at £90 per month, which to be blunt is impossible right now or provide an I&E form to get this reduced and that they can take 25-50% of my excess income.

 

I feel like throwing up, and am about to buckle under the pressure, what would anyone suggest?? Please please help if you can as I really dont know what to do

[moneycantbuyyoulove]

So know that feeling. But don't worry. They are just letters written by a machine. Don't be afraid to go through affordability. They are quite reasonable. They told me I couldn't afford to pay anything and referred me to the hardship committee. Whatever that is!

[suemumof3]

Thank you that really helped!

 

I have just been on the phone and gone through my I&E which I spent some time sorting out last night. As expected it came out as a deficit, which was no surprise as I was £300+ short for my bills last month!!!

 

They have put my case on hold for the next 6-8 months and will then write to me to review my finances. Hopefully by then my appeal will be sorted, but at least I can sleep a bit easier now.

[moneycantbuyyoulove]

Good. If hmrc are causing you trouble in sleeping, I have found that saying the rosary works wonders! It works a bit like worry beads; the mind can only concentrate on one thought at a time so if you are saying the rosary it's hard to be thinking about hmrc. try it! Good luck with the appeal.