Tax Credits - Please help!?

Question

Tax Credits are chasing me for an overpayment they made tax year 2004 to 2006.

I left my now ex husband in january 2006 and I am a lone parent.

The wages for the year were only £1,200 above the estimate. So I have been writting letters constantly requestion information and their reasons as to why we need to pay them back when we were within the £2,500 threashold.

They are now saying that yes I am right about the threashold BUT not in my case because we didn't inform them within 3 months.

1st of all, I left my ex before the end of the tax year
2nd, I left because of domestic abuse
3rd, after everything, how can they expect me to stick around and find out exactly what he did earn???
4th, they are chasing ME for the money, not him.

Please help! I'm desparate to sort this out, I've been to CAB and they can't help me further.
Is there anyone who's been through the same thing? What did you do?

Answer 1

Hi,

Firstly, do not stop communication with HMRC.

Secondly, you must speak to them and ask for a postponment of the amounts due as you are currently reviewing the paperwork you have received and seeking advice on what to do next. This will buy you time over the Christmas period and do try and enjoy it as best as you can.

Thirdly, it seems you have exhausted all means of solution with CAB and therefore the next stage is to put into writing your current financial circumstances and all mitigating circumstances involved in the case, domestic or otherwise and ask them to write off a portion of the debt. Not all of it. A portion.

Finally, offer to pay them what you can by direct debit you may be surprised how sympathetic they can be IF you get through to the right person.

And most importantly I wish you good luck and hope you have a very merry Christmas.

Answer 2

Me and my husband are in a very similar position, 3 years ago we started our own business, I informed the tax credit office of this straight away and I was told that they would keep paying it into our bank account until we could give them some figures on what we earn!! Being a new business we wouldnt know this until after the first year of trading. On two other occasions I phoned them to ask them to stop paying money into our bank account, we were told the same as before. We now have to pay this money back to them £2577.00 (we havn't got it) We appealed TWICE because we have since found out that we were entitled to a small monthly payment of child tax credit but they say that we still have to pay it back (even though we were actually entitled to some of it)because we didnt fill the claim forms in!! and there it nothing we can do it seems!!

Answer 3

like us then however they are knocking us for money we really do not owe...i moved in with my now husband the 1st of march this year.....when they did the estimate they estimated for the beginning of february.....however to say we did inform them ....but was informed that they were going to stop our child tax and working tax till April next year....so we have to make do ....even though we made several attempts to contact the CAB...the goverment are useless....

Answer 4

you are not alone sweetheart, just about everyone i know has been "overpaid" by the tax credit idiots. Im currently ignoring my letter as its christmas and im facing redundancy on xmas eve...but i know i have to sort it. im beginning to think it was a complete waste of time.... it looks like you may have to come to some arrangement on paying it back...same here but its just not fair that folk on low income get duped this way. we're all with you babe but as far as i can see you mite have to take the medicine afore they start getting clever and adding court costs...xx

Answer 5

hi you need to get a C.O.P 26 form from tax credits to appeal against claim also a C.O.P 1 form to make a complaint .this really just tells you where to send letter .
I have been trying to sort out a overpayment which i never received since 2004.don,t let them fob you off by saying someone will phone you back from C.O.P TEAM THEY NEVER REPLY.
C.O.P .(CODE OF PRACTISE)

Answer 6

My mate at work had a similar situation, she had to cash in her shares to pay back over 3 grand
If you where receiving the money its your responsibility to inform them of any change. If you where receiving the money then it is your responsibility to pay it back.

Answer 7

as above