Tax Credits

[Meg888]

I no longer claim them, but did so from 2002-2010. I've just received a letter stating they overpaid me £1100 in 2006 & £600 in 2010! I've never heard from the HMRC regarding either of these overpayments. There were a couple of times during my periods of claim they stated they'd overpaid me, and they reduced following awards accordingly. Not sure how to dispute this, I was just going to send them a letter with my P60's, if I still have them or failing that a letter from my work confirming my earnings for those periods - do you think this will suffice?

[factor-fiction]

It may suffice if they cover all your sources of income, but it may be that have still overpaid you since I think payments are based on past/forecast earnings and so an assessment has to be made later regarding possible over/underpayment.
2006 seems a long time ago though to be asking now.
They should set out their calculations for you

[Meg888]

I know Factor, I wouldn't have thought they could even chase this as it's 6+ years old?? All I got was a letter stating the two dates and the amounts, there's absolutely no other info ie calculations as you say.

[ummmm]

I don't think HMRC write off debts.

[factor-fiction]

I don't think the rules about 'time barred' apply to tax or DWP 'debts'.
Without a breakdown and explanation it's difficult to give definitive answers

[Meg888]

Thanks for your replies, hopefully I'll get it sorted without too much pain!

[themas]

When you were claiming, after each tax year end you would have been sent a form to do an annual declaration. When you had done that they should have issued you with a final award notice for the tax year concerned. If there was an overpayment, it should have been shown on that award & - if your claim was continuous - the overpayment should have been deducted from ongoing payments by reducing them (usually by 25%).

That is what you say happened on two occasions. It is just possible - but very unlikely for the 2006 overpayment - that they never recovered the full overpayment before your claim ended & that what they are asking for now is the rest of it.

You need to do a Data Protection Act request for a copy of all the paper & computer records they have for you, & a CD of all calls. Make sure you ask specifically for a copy of all the award notices they sent you & that you specify that what you need must cover the 2005-06, 2006-07, 2009-10 & 2010-11 years as well as all others. You may find information on where to write to on HMRC website. If not, contact your local CAB who will be able to tell you the address to write to.

I would not be at all surprised if you find they no longer have any records for 2006 (I believe they only keep them for 5 or 6 years after the year end). If that is the case it is very likely to be impossible for them to provide any proper evidence that you do owe them any money for that year so you should argue very strongly that you have no knowledge of any debt for that year.

But do the Data Protection request first (it takes up to 40 working days to get the reply). Their various departments do not communicate well so, as well as submitting the request, reply to the letter you have received (which is probably from their debt collecting branch) telling them you have no knowledge of owing them anything & are waiting for the answer to your request before doing anything more.

[Meg888]

Hi Themas, thanks so much for detailed and informative reply. I will do as you have stated, as I may be in a position that I may need to start claiming again soon - my ex husband has been claiming, however, he has since ceased and the partner I once lived with has moved on. I'd rather have it sorted before attempting a new claim as they would no doubt deduct it from any new award, despite my disputing their arrears.

[themas]

Meg

Thanks for your comment. One thing they can't do (& they do know this, & don't try to do it!) is to deduct the overpayment from a new claim. They can only deduct it if the claim currently being paid is the same one as the one on which the overpayment occurred. So if you do have to claim again they can't deduct from it, but they will continue to chase you to make payments so definitely go ahead as in my previous post.