Overpayment of tax credits advise

[pier_six_brawl]

Quick version -

 

i did not renew our tax credits for 2014/2015 as our circumstance has now changed and we wouldnt need nor qualify for them.

 

Got a letter few weeks ago saying we had been overpaid, for the entire 2013/2014 claim, so 4.5 K

 

In addition apparently an extra fine of over £1 k because i did not renew the claim to inform them i did not intend to claim any longer.

 

I wrote back to them right away and asked them to explain how they worked all this out and also to dispute their decision. no reply to my letter, but got a new letter today basiaclly ramping up the debt collection side, saying they will pass me on to a debt collection agency unless i work out a paymnent plan

 

I called them up, and they said yes they received my letter on Oct 23rd, but all enforcement action against me carries on regardless of any appeal or dispute.

 

Apparently they wrote to me in the spring asking for more in depth details of my work, but i never received this letter, and thus when i did not give this extra info they decided my whole claim was thrown out .. and then also decided i owe an extra £1100 for not renewing.

 

I spoke to a very obnoxious young man on the phone today who basically spoke down to me like i was a naughty school child. I told him i had written to them to dispute it, and he basically said " how can you dispute it if you dont know what your disputing " ... it was like banging my head against a brick wall with this kid. horrible little thing !

 

anyways, i have had to agree a payment plan with them... after reading the forums here i have sent an SAR to them but they just e mailed me and said they have 40 days to get back to me, in the meantime im guilty until proven innocent apparently.

 

surely all this can not be right at all ?? guilty until proven innocent and even in that case not given a timeframe to prove my innocence

Edited November 12, 2014 by pier_six_brawl

[blondebubbles]

If an appeal is made recovery action is suspended, but not for a dispute.

 

I read a forum earlier that explains that the law does not require HMRC to allow you to dispute an overpayment as all overpayments can be recovered even if it is their mistake. However they do allow it within a 3 month time period.

 

What the law does allow is an appeal if you think HMRC made the wrong decision on your claim eg you claimed as a single person but they believe you to be a couple. You can appeal their decision.

 

A dispute is where there is a valid overpayment but you believe the error is theirs, not yours eg you called and updated a change but it was not recorded correctly by the staff.

 

You may be able to appeal the 2013/14 issue, more info would be needed on what exactly the problem was.

 

However failure to complete the renewal, that can only be disputed. Unfortunately you would be unlikely to win the dispute on the renewal based on what you've said as it clearly states on the form that not completing it will result in an overpayment.

 

Even if you do not complete it, when they terminate the claim you are issued a letter (a statement of account) advising you of this and have 30 days to rectify it. Your SAR should show what date was this was sent depending on what exactly you have asked for.