Working tax credit overpayment

[LilMissM]

I received a letter from LCS credit management as follows:

 

Your Tax Credits debt of £1XXX.XX

 

HM Revenue and Customs records show that your tax credit debt remains unpaid and the debt has now been passed to us to deal with. You need to pay the amount above now.

 

If you are finding it difficult to pay, we can offer you help. Please phone us to discuss whether you could spread your payments.

 

Unless you pay or call us now, we may commence formal debt collection activity.

 

Now I originally disputed the amount they were saying I owed and the last communication I received from the Tax Credit Office was in September 2014 as follows:

 

Dear XXXXXX,

 

Thank you for contacting us about your tax credits overpayment. You have asked us to consider if you should have to pay it back. I am sorry for the delay in replying.

 

I have looked at the information that you have given us. Because you were unable to meet your responsibilities under our Code of Practice 26, you do not have to pay back £131.76. This is the money we overpaid you between July to October 2012.

 

You need to pay back £293.88. This is because we paid you too much tax credits. The reason we paud you yoo much for this tax year was because we paid you more than you were entitled to in provisional payments at the start of the tax year.

 

We based your provisional payments for 2012-2013 on your estimated income of £9,833 for 2011-2012. The annual declaration you sent us in July 2012 confirmed that your actual annual income for 2011-2012 was £11,821.

 

We used the income figure you gave us in July 2012 to work out your actual entitlement for which was £501.19. Because we had already paid you £926.83 in provisional payments, this meant that we had paid you £293.88 too much.

 

Can anyone please shed any clarity on this for me please as my head is battered with it x

[dx100uk]

ignore the DCA

they are totally powerless

and are not BAILIFFS.

 

 

deal with HMRC directly only

[LilMissM]

Can you work out from both those letters just how much I do actually owe? I have some handwritten notes I made from a telephone call with HMRC about this. My notes, as I recall, were what the lady on the phone was advising me to do.

 

Still disagree with 2012-2013 - take into account new evidence provided. I returned annual declaration on 30/06/12 and told them my income was £11.821, however records were not updated until October 2012 so there was a delay in updating my records. Look into it again. Make a complaint if no joy.

 

 

[dx100uk]

pers i'd be sending HMRC a Free SAR

prove or disprove their case

 

 

dx

[LilMissM]

What do you mean a "Free SAR"?

[dx100uk]

Hmrc sar is free

 

 

https://online.hmrc.gov.uk/shortforms/form/DPU_SAR

[LilMissM]

Thank you dx I have done that now, will let you know any response I get x

[LilMissM]

I have today received a letter from HMRC asking me to fill in a form to enable them to send me the relevant information I require.

It looks like a pretty standard letter explaining that I may not need all of the historical data they have and to fill in the attached form from which they can then send me the information I am asking for.

It also says I can phone if I need more information.

Should I give them a call or just fill in the form and send it back straight away?

I have also received today a letter from LCS regarding the overpaid tax credits with a subject heading in big bold letters "DO NOT IGNORE: Notice of Further Action"

What should I do about them?

Should I phone them and tell them I am dealing with HMRC

and I have submitted an SAR?

LilMissM said:

Thank you for contacting us about your tax credits overpayment. You have asked us to consider if you should have to pay it back. I am sorry for the delay in replying.

 I have looked at the information that you have given us. Because you were unable to meet your responsibilities under our Code of Practice 26, you do not have to pay back £131.76. This is the money we overpaid you between July to October 2012.

 You need to pay back £293.88.

This is because we paid you too much tax credits.

T he reason we paid you to much for this tax year was because we paid you more than you were entitled to in provisional payments at the start of the tax year.

 We based your provisional payments for 2012-2013 on your estimated income of £9,833 for 2011-2012.

The annual declaration you sent us in July 2012 confirmed that your actual annual income for 2011-2012 was £11,821.

 We used the income figure you gave us in July 2012 to work out your actual entitlement for which was £501.19.

Because we had already paid you £926.83 in provisional payments, this meant that we had paid you £293.88 too much.

 Can anyone please shed any clarity on this for me please as my head is battered with it x

And can anyone make sense of that?

Can anyone work out just how much they are saying I owe in that letter?

[dx100uk]

You need to pay back £293.88.

 

so you need the sar data to be able to prove or disprove they are correct.

 

as for the DCA

how many more times YOU IGNORE THEM TOTALLY.

 

dx

[LilMissM]

Haha ok I consider myself well and truly told there!

And the £293.88 is the amount that I believe I owe, going from that letter they sent. I don't understand why I am being chased for an amount that is over a thousand pounds, when the letter from HMRC says that after reviewing it further, I was overpaid a total of £293.88!

Thank you dx, a million thank you's

Shouldn't the letter from HMRC saying I owe £293.88 be proof enough though?

[dx100uk]

no harm in checking they are correct mind..

back to post 1 really...

[LilMissM]

I have received a lot of paperwork from HMRC re: my SAR...going to start reading through it now. Is there anything in particular I should be looking for?

[dx100uk]

prove them wrong

is there evidence they can use to prove their case in black & white

[LilMissM]

There is a LOT of stuff here, it's going to take me ages to go through it all

[LilMissM]

From their files dated 25/03/14:

 

"The O/P for 11/12 occurred due to increased income. T

he award of £1313.73 was made based on household income of £9833.00.

The appl told us this income on 28/06/11.

The appl then told us that her correct income was £11821.00.

 

We then used the lower CY of £11503.00.

This reduced the entitlement to £628.03.

T he appl received more than the new lower entitlement amount.

HMRC met all resp therefore this overpayment is fully recoverable.

Advised more imform required for possible exceptional circs.

 

The O/P for 12/13 occured because the provisional payments were made based on household income of £9833.00.

The appl returned the s17 and told us the correct income was £11821.00 which reduced the entitlement to £509.19.

The appl had already received more in prov payments. HMRC met all resp therefore this overpayment is fully recoverable."

 

From their files dated 18-09-14:

 

"Decision/Overpayment reason(s)

- Overpayment review 12-13.

Post receivevd 10-06-14.

Previous deision 2-06-14 overturned.

 

Part remit 131.76 as we rec'd income via s17 on 30/07/12 not amended till 26-10-12.

Part rec £293.88 due to inc increase on initial award."

 

There is a letter dated 19th September 2014 from HMRC, which I have posted already, saying

 

Thank you for contacting us about your tax credits overpayment.

You have asked us to consider if you should have to pay it back.

I am sorry for the delay in replying.

 

I have looked at the information that you have given us.

Because you were unable to meet your responsibilities under our Code of Practice 26,

you do not have to pay back £131.76.

This is the money we overpaid you between July to October 2012.

 

You need to pay back £293.88.

This is because we paid you too much tax credits.

T e reason we paid you to much for this tax year was because we paid you more than you were entitled to in provisional payments at the start of the tax year.

 

We based your provisional payments for 2012-2013 on your estimated income of £9,833 for 2011-2012.

The annual declaration you sent us in July 2012 confirmed that your actual annual income for 2011-2012 was £11,821.

 

We used the income figure you gave us in July 2012 to work out your actual entitlement for which was £501.19.

Because we had already paid you £926.83 in provisional payments, this meant that we had paid you £293.88 too much.

 

In a letter from HMRC prior to that, dated 25/03/14 they say:

 

"We have recovered £21.38 of your overpayments in 2011-2012 from other years by reducing your ongoing tax credit payments.

You still need to pay back £663.32 from your future awards.

If the award with the overpayment ends, we will ask you to pay back any outstanding money direct to us.

 

You still need to pay back the overpayment of £425.64 from 2012-2013 from your future awards."

 

My head is battered with all this!

 

 

I think I should take it to the CAB

get someone experienced to look through it all.

[dx100uk]

last line here

We then used the lower CY of £11503.00.

This reduced the entitlement to £628.03.

The appl received more than the new lower entitlement amount.

HMRC met all resp therefore this overpayment is fully recoverable.

Advised more imform required for possible exceptional circs.

 

 

try again..

[LilMissM]

Ask them for more information on that?

[dx100uk]

Advised more imform required for possible exceptional circs.

^^^

check that line its pants English please

 

retype it out please check it

[LilMissM]

My apologies, I spelt "inform" wrong. It says:

 

Advised more inform required for possible exceptional circs."

 

That is word for word what it says

[dx100uk]

urm their typo?

 

should read:

advised more info required for possible exceptional circs?

 

 

I read that to mean there is or might be a way out of this.

 

 

so look slightly after 25/03/14:

any indication they sent you a letter?

[LilMissM]

The only correspondence after that letter of theirs dated 25/03/14 (the letter in post #1) is my letter to them dated 09/06/14 which was querying the Notice to Pay I had received. Their next letter to me after that was the one dated 19/09/14 saying I need to pay back £293.88. I think by that point it had been passed over to LCS and they told me I owe £1088.96.

 

The information in post #16 is from screenshots of their computer system.

[dx100uk]

good well atleast you've been able to confirm its id £293 rather than +£1000 the fleecing DCA were after:lol:

 

keep looking you have all w/end

then pos look at arranging a monthly? payment direct to HMRC during te week?

they'll not want a lot £5-£10 might well do?

 

dx

[LilMissM]

To be honest the majority of the stuff they have sent me is screenshots of their computer system, some of which has no info at all. There are only the three letters mentioned in this thread in with the bundle of papers. I will keep looking though. Thank you dx x

[LilMissM]

Do I have to contact the solicitors to make an arrangement to pay? Or can I phone HMRC?

[dx100uk]

what solicitors?