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AIBU?

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To think tax credits that are over paid is the tax office's fault and I shouldn't have to pay for their mess up.

10 replies

m0therofdragons · 20/09/2015 09:24

Our tax credits have reduced this year which I expected. We called and gave all the numbers they asked for. Then we received 3 separate payments for different amounts plus our monthly amount in August. We called them to question why we had the 3 extra payments as it didn't make sense that if our entitlement was reduced we should be owed anything. They assured us it was all corrected and we double checked the amounts they had written down.
I've just done the online calculator which shows we are being over paid by £77 per month. Basically by the end of the year we'll owe more than £900. This is making me nervous. I have no debts and just hate being put in this position. We can put the money aside but that isn't the point - why can't they get it right to start with. If we've questioned it and been told it's right do we get to keep it regardless?
Next year I'm increasing my hours so won't get any but that means they can't take it back easily - will they expect it in one go?

OP posts:
SouthWesterlyWinds · 20/09/2015 09:28

I don't get it. If you're putting the extra payment amounts to one side, it wouldn't really make any difference if they wanted it back all at once or in instalments, surely?

WoodleyPixie · 20/09/2015 09:28

I no longer receive tax credits but am still paying back a supposed overpayment on childcare! They sent forms to my ex childminder to complete and she never returned them. She has moved and I don't know where to, so they dismissed my appeal. Nearly £10,000 it's going to take me forever to pay it back and no chance of appeal. Seems really unfair as they had sent a form to the childminder when my children first starter with her and she confirmed cost and hours then.

The system does seem unfair and I don't know how you can prove it was their mistake and not you withholding information.

WoodleyPixie · 20/09/2015 09:30

I pay a weekly instalment. The woman on the phone agreed that it wasn't right as I had paid the childminder and so basically had had an interest free loan for childcare from them and not a tax credit.

KissingFish · 20/09/2015 09:34

If it's their fault they've over paid you then you don't have to pay it back. It's probably more complicated than that but I remember reading about it on a letter they sent to us the other day.

m0therofdragons · 20/09/2015 09:40

Is there a deadline for them asking for it back? Although I'll put it to one side, if we can keep it then I can think of plenty of uses - like flooring in the bathroom that has carpet in!

OP posts:
ProfYaffle · 20/09/2015 09:41

Have a look at the HMRC code of practice, if the overpayment is their fault and you have provided all the info you're required to, you shouldn't have to pay it back.

www.gov.uk/government/publications/tax-credits-what-happens-if-youve-been-paid-too-much-cop26

ProfYaffle · 20/09/2015 09:42

Have a look at their code of practice here. If you've provided all the info you should and it's their error you shouldn't have to repay. CAB can advise on challenging an overpayment.

www.gov.uk/government/publications/tax-credits-what-happens-if-youve-been-paid-too-much-cop26

ProfYaffle · 20/09/2015 09:42

Oops, apologies for double post, the first one disappeared!

m0therofdragons · 20/09/2015 09:52

Thank you! It's just so annoying.

OP posts:
Ineedmorepatience · 20/09/2015 10:06

This happened to us a few yrs ago, I appealed and got help from my MP we won the appeal and didnt have to pay anything back!

When you ring them always write down who you spoke to, date and time so you have proof that you tried to tell them it was wrong!
It was their mistake!

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