HMRC investigating my tax credits despite no changes

[MafiaCub]

I've received a letter today, and its made my wife a bit nervous and also got me concerned as we are currently (like many others) struggling with bills at the moment and just managing to get by.

 

HMRC have sent me a letter looking at my tax credit award from 6th April 2022, believing they are paying me too much tax credit as their information shows that I receive Carers Allowance of £3514 for this past year, they believe I was given too much tax and will need to pay it back. It says if I agree I was paid that money, I should do nothing and they will send me a new reward letter with the credits amended to pay back any over payment. Well I do agree I was paid that money. But it says if I dont get in touch by December 6th, they will also amend it.

 

My issue here, is that our income has not changed (apart from increases in rates) for 5-6 years.  Me and my wife claim joint Employment Support Allowance, Child Tax Credits, and I receive Carer allowance for looking after her (so our ESA is slightly reduced for that reason). This, like I said, has been the case for 5-6 years now. I don't understand why they would now decide that they've paid too much tax credits due to my carers allowance, when all our income comes from the same source, is the same benefits it always was, and has never been an issue.

But naturally I'm now concerned, and my wife who suffers with anxiety anyway (not her disability, just a lovely extra) is also very worried that as our bills keep increasing, and we struggle more with the raising fuel bills and food costs, we're now going to be having a reduction in our income.

 

Is this a standard letter, and likely to be looked at and no changes made? or is it only sent out when they know there's an error, and we are likely to be facing a significant reduction to pay it back?

 

I guess I just want a little help to calm myself and know whats going on, as their offices are shut over the weekend, and I'm in Hospital on Monday for an all day appointment, and Tuesday I will be taking my wife to a physio appointment in the morning. It's really going to be Tuesday evening before I can call, and I'll be concerned for the next 3 days that I'm going to be going into the coldest parts of in more of a financial struggle

[unclebulgaria67]

It seems from what you say that HMRC have failed to adjust your tax credits to take into account the Carers Allowance, so therefore you have been overpaid.  But before they can start collecting for the overpayment, they needed to contact you about it first.

 

If you are struggling financially, it may be worth speaking to HMRC, so you can ask questions and also ask for the overpayment to be collected over a longer period.

[MafiaCub]

 

This is what I don't understand though, I was advised by the DWP to claim carers allowance (I've technically been a carer for 13 years but was unaware I could get the payment) I claimed it 5-6 years ago. Going through sites like "what am I entitled to" and other tax credit calculation sites I'm fully entitled to the amount I get (£4 more per week actually, for some reason)

 

but if it wasn't an issue any of the other years, why now, when all payments are the same? It just seems weird to me that getting everything via government feels like it should all be automated and be correct, and with no changes at any point, we should always be getting the same entitlement.

 

If it's wrong now, surely it's wrong for the previous years too, so we'd be even more indebted. But every website, the DWP, and Citizen Advice too have said we were entitled to it, the HMrC have agreed for 5 years and now it's suddenly wrong?

 

I'll definitely call them, but it will be late Tuesday. I hate calling them and DWP though, always feels like they're waiting to try and trip you up so they can take something away (ESA for my wife has been taken away, then appealed and won back 3 times in 10 years. Due to them writing her off to make their numbers)

 

So for now, as may be obvious from my rambling posts, I'll be having a million scenarios running through my head

 

Edited November 19, 2022 by dx100uk
unnecessary post quote removed

[labrat]

The keyword to use is "time to pay" that is wording that they use for payment plan

[dx100uk]

stay calm

they are not out to ruin you or prosecute.

 

contact them tell them the truth.

 

can't hurt you

 

dx

 

[MafiaCub]

I know, I know. Just past experiences haven't felt great. I'll call on Tuesday and update accordingly.

[MafiaCub]

Managed to call them today due to a change in my appointments

 

So it turns out they sent this same letter to everyone who gets carers allowance (their words, but I'm sure there must be some group who didn't). There is no over payment. It was simply sent to everyone, because some people have new claims and it effects their tax credits.

 

There must be thousands of people, like me, who would have thought this was going to be an issue due to the letter claiming you had been over paid and your reward will be adjusted.

 

Couldn't they just send out a letter, that lets you know it's being sent to all, and just asks you to check your tax credits as they will be doing a review? Would explain it better, and not leave it looking like you may be about to lose some income in a time when every penny counts for some people