We have just received a notice from Tax Credits that we owe them £2700 in overpayment.
I started employment in February 2016 and my little boy then went into nursery so we applied for child tax credits. My hubbie rang them up in February 2016 to advise of the additional income and childcare. However, when he logged online to change our address in November 2016, he noticed that our income was not updated and we were since investigated and had our child tax credits stopped from Nov 2016.
When he did the renewal in June 2016, there was no option for mentioning the additional income again, just to put in our earnings for 2015/2016 which he did.
So what I don't understand is why we are being charged for their mistake (which is not updating our details as requested when we called in Feb 2016). I called them yesterday and said that I want to listen to his call in Feb where it proves he advised them of the changes. They have asked us to appeal online but say that as far as they can see, they are in the right and it doesn't look like our appeal will be successful. How can they get away with this when we have always updated them with every change that has taken place? We have been struggling with the loss of child tax credits along with our IVA, just getting by and now they want us to pay them
Any advice will be highly appreciated.
Thank you