Need Help Urgently Child Tax Credit Overpayment

[winnne]

I have been incredibly careless and stupid and never properly checked my Child Tax Credit Award or renewal form. I found it all very stressful & all I did was fill in figures & sign, and all my partner did was sign.

 

So it turns out I have been getting the Severe Disability Element of CTC for my child for several years when I shouldn't of (do get DLA so I do qualify for the first element) All I can say in my defence is that when I first notified Tax Credits I was receiving DLA for my son I was asked what level he was receiving. I said I didn't know gave them a reference number and was told "we'll check that out"

 

What has happened now is I got a Compliance letter which quirried my child's elegibility for the Severe Disability Element for Tax Credit Award to 5 April 2012 saying their information did not confirm it. I was asked to contact them by 5 July 2012 if I disagreed and to finalise my Tax Credit Award by 31 July 2012. I contacted the Child Tax Credit Helpline earlier this week changed my details and did confirm income details for end of tax year.

 

I am now totally terrified as to what I should do. I know the overpayment I have had will be huge, and it will take a very long time to repay. Will the compliance department have already picked up that my claim has be wrong for so long? Is it best that I ring them and admit my fault? My partner is oblivious to this, he has work issues at the moment and I am really worried that this will push our relationship over the edge and I will be homeless on top of everything else.

 

I know I have been totally irresponsible and I am sick with worry as to how this might end up. Me in prison and my life over, my son in foster care and all the pain hurt and embarrassment I will cause my family. If it wasn’t for my son suicide would definitely be my answer.

 

I know contacting CAB would have probably been a good idea, but circumstances meant it was difficult.

 

Please help any advice will be gratefully received

[Gbarbm]

Hi

I would suggest googling COP 26.

This is the code of practice regarding overpaid tax credits.

From what you have said, this seems to be a case of HMRC failing to make proper and timely use of the information that you gave them.

As a result of the telephone conversation, you had a reasonable belief that they would and had acted upon the information.

I would await their response and then post back here and we can draft a letter regarding the amount and treatment of any overpayment they allege you owe

[winnne]

Thanks for replying but I think I'm totally up **** creek I have finally dared to check my paper work and it goes right back to the start of my childs DLA (2003) Just trying to relax a bit this weekend and psyche myself up to call Monday or Tuesday. I just don't think they will belive me that I never noticed and it will be game over for me.

I assue that calling up and admitting my error is the best cause of action to take rather than waiting for them to come for me?

[Gbarbm]

Don't panic!

Yes, you could argue that you should have noticed sooner but you're not a tax credit expert are you!

HMRC are just as much at fault for not acting on the information you provided at the time.

No one is going to prison ok and please please put the thought of suicide out of your head, please.

Worst case scenario; you will have to repay the overpayment back through a time to pay arrangement.

For now sit tight, wait for them to write to you and we will draft a response.

Now try and relax and enjoy whats left if the weekend x x x

[winnne]

I did relax a little yesteday but then woke up again this morning panicking with all sorts of possible senarios running through my head!

 

I am still confused as to whether I should ring the Compliance Department and tell them the error goes back further than the 2011-2012 claim that they have written to me about or just wait for them to 'find out' which they no doubt will

 

Paying the money back is definately what I want to do but if I end up jobless and homeless through all their investigations then that will never happen

[Gbarbm]

Just wait till they get in touch and then we will take it from there.

And don't worry you'll still have your job and your home

[MrSmith1]

message removed

Edited July 20, 2012 by MrSmith1