overpaid child tax credits.

[R1chard]

going back to 2004 / 5 i was with my ex living together and we claimed child tax working credits.

we claimed these for just over a year.

during the year i recieved a small payrise, i rang them and told them about this, they sent me new forms, which i filled out and sent off.

i heard nothing and the payments continued as normal.

end of the year (8 months later) i got told i ws being overpaid and they want all the money back (3300) in total.

i was gobsmacked, i told them i didnt lie on any of my forms and they basicially told me that hows they work, leave it till the end of the year then claim it all back.

ive tried fighting this decision over the years, and finally gave up when i deciced to go onto an iva and included allthe debt into my iva.

they voted yes for my iva.

now they have started sending my ex letters claiming the full ammount from her/ alltho the money was paid into my bank account?

can they do that? my ex rang me today crying..

[Andrew Graveson]

Hi R1chard,
I couldn't be certain but it seems likely that they are within their rights to do that. One of the sad things about these tax credits is the significant number of people who have been left in serious financial difficulty when incorrect payments are amended retrospectively. My suggestion would be to make an appointment (or encourage your ex to) with the local Citizens Advice Burueau who I'm sure will hav dealt with many such cases and might have ideas of benefit to your ex.

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[markiboy]

I am in the same boat and recently wrote them letters re-this. They have usually not replied as it has gone into the difficult tray. I am this week again making a formal complaint to the ombudsman. The last time I did it I got £40 back, so well worth complaining. To sum up I think it is a grey area that the Child Tax credit don't know what to do, however we are paying that debt off via our IVA where is that money going???? The IP is not much help!!!
Markiboy

[Lisa2009]

There was a year where due to computer error, a lot of people were overpaid. I cant remember off the top of my head which year it was. I do believe they are within their rights to try to claim from your ex too if it was a joint claim but if she still recieves tax credits they have set percentage rates that they can recover it by, depending on which elements of tax credits she recieves.

[R1chard]

i dont understand how they can do this, the reason we claimed tax credits at the time was because we in financial difficulty, once they stopped paying us and demanded the money back we had to move out due tio not being able to afford the monthy rent and all thats goes with it.

they say banks are the modern day maifa, inladn revenue are just as bad

[Andrew Graveson]

The stats show that vast sums have been overpaid, and a great deal of it hasn't been paid back. I'm sure most of that is because people simply cannot. In the main it seems to be recovered by reducing future payments which has a knock-on effect on the individuals ability to manage their finances.
If part of the debt is being recovered via an IVA they will not be able to recover that part again from an ex partner.

Andrew Graveson
Independent Mortgage Broker & MD Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Lisa2009]

Just found this if it helps anyone.

How much will you reduce my payments by when you are collecting an overpayment?
We automatically reduce your payments to recover a previous year’s overpayment. The maximum recovery rate depends on your current tax credit award as follows:

Tax Credit Award Maximum Recovery Rate
An award with no reduction due to income 10%
An award of the family element
of Child Tax Credit only 100%
All other awards – For example, those entitled
to Child Tax Credit above the family element,
or Working Tax Credit below the maximum 25%

[63k]

Are you paying back to overpayment via your IVA then? In that case they should not be applying for the money from either of you, did your ex let them know and give the Tax credit operator the contact details for your IVA etc and they should also have a note on file, well this is opnly my opinion! I am new to all this!

On another note, when I found out about over payments, I rang them and explained I could not afford to pay back the whole amount and after a consultation on my income expenditure I got it reduced to £20 a month.

[busy40]

I have spent three years arguing with the tax credits people after they wrongly tried to rake back money they had paid to me for my son. They even paid me £35 compensation and admitted they made a mistake. However they continued to try and collect money from me. I have been arguing by post with them for 3 years and even tried to involve the ombudman who basically didnt want to know. The next thing i know, the tax credits office are claiming on my IVA. Im tired of fighting now and have decided to just let it drop. I would rather starve than have any more dealings with them. It was through their actions in the first place that proved to be the straw that broke the camels back and led to my IVA.

[Lisa2009]

Did you actually declare them as a creditor?
I would have thought that if you had it in writing from them that they made a mistake, they were entitled to nothing.

[R1chard]

I delcred them as a creditor. as you have to notfiy your IP off all your debts.

they are still sending me letters claiming they are know considering taking me to court.

funny really cus they voted yes to my proposal.

i keep telling them the same thing. even got my ip to send all my confirmation of my iva to them.

still they keep chasing me..

58 PAYMENTS TO GO..

[scaredkez]

i had to declare them in my BR, the OR allowed them to still take the overpayments back by way of not giving me any at all, although it was their mistake with the overpayments, like others i notified everytime there was a change in circumstances and they still messed up, i don't know what it means to me now that i am discharged, whether it has now been written off or they are allowed to continue taking the overpayments as i read somewhere else that once discharged they couldn't and the slate was wiped, anyone know if this is true?
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[jane.l]

We were overpaid these in 2004/2005, we do not get them now. We have to pay back £50 per month for the next 4 years. We are bankrupt, I asked the OR should I carry on paying them and he said “you could try not paying them!”” It has not been mentioned since so we have to pay them back for the next 4 years.

[scaredkez]

jane ring the tax credits your self and inform them of your BR, i just did, ring this number 0845 3661206 its the debt management team, make sure it goes on your record that you have been declared BR, he is updating my account now, because i am discharged they are just waiting to see if they can reinstate my account as the tax credits were covered by the BR, and then when you are discharged you ring them again and tell them so, good luck its worth a go jane as i just found out will let you know the outcome.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[scaredkez]

just found this hope this helps:

Final award notice (of repayment) issued before the date of the bankruptcy order.

*

If the recovery is made, or would have been made, by direct collection (in cases where there is no ongoing award of tax credits), HMRC will submit a proof of debt in the bankruptcy, considering the debt to be a provable one.

*

If the recovery is made, or would propose to have been made, by deductions from ongoing awards of tax credits, HMRC will not submit a proof of debt in the bankruptcy but will continue to make the collections from the ongoing award of tax credits until the bankrupt’s discharge from bankruptcy. Thereafter the balance of the debt will be written off. This action, of continuing to recover the debt post bankruptcy, follows the decision in the case of R v Secretary of State for Social Security, Ex Parte Taylor and Chapman [note 1] which provided that where a bankrupt was indebted to the Secretary of State for Social Security in respect of debts arising from earlier receipts of social security benefits, he/she was entitled to deduct sums from future benefits to be received thereafter in reduction of that indebtedness. Should any bankrupt object to the taking of the ongoing recovery action by HMRC in this way, they should be referred to that Department without further comment by the official receiver.

In all cases where a final award notice (of repayment) has been issued by HMRC before the date of the bankruptcy order, the debt should be added to the list of creditors and HMRC treated by the official receiver as a creditor in the usual way.




Please view my blog at: http://scaredkez.blogs.iva.co.uk/