To wish I'd never claimed tax credits

[StillCantDecideOnaUsername]

I only started claiming a few years ago when my income dropped as I was on maternity leave. I am now paying back one overpayment of 3k at £200 a month and currently disputing another overpayment of 6k. The amount of financial and emotional stress the situation is causing makes me wish I never claimed in the first place and tried to manage without. I have done a lot of research on TC overpayments and it seems that it is so common, surely this just goes to show that the system is not working!!!

Whenever you ring ask them to go over every page of your info. . They had my dh working full time despite being made redundant 2 years ago as the man said they only go off the first page despite my claim having 5 pages of info. They added my teen son on after he left his df and removed my toddler!! Insane system.

Oh lordy mine became such a nightmare that I actually felt physically sick whenever I saw a brown envelope arrive on the doormat.

In a nutshell they decided I owed them over £5k, and I pay £175 of my pittance of a maternity pay every month. I could probably get it lowered, but it's too much aggro and to be honest, I worry they'll decide that I owe them more, despite informing them of change of circs and painstakingly filling in the forms every month. When I go back to work part time at 20 hours I will be entitled to TC again but there is NO WAY I am putting myself through that stress again, I'd rather eat baked beans and not have a panic attack every time the postman comes. How sad is that.

We had similar. We informed them of every change of circumstances at every stage and then one year they decided that about three years earlier they had overpaid us. They still wanted to pay us though. I asked why if they had overpaid in year X they continued to pay us in year Y, instead of just clawing the money back by not paying us that year and they said they couldn't do that. We paid the money back and told them that we no longer wanted to claim tax credits due to the stress they had put us through, we'd rather have less money but know that it can't be taken off us. They wrote back and told us that once you have claimed tax credits you are legally obliged to continue to claim them, you can't opt out. That seems like madness to me but we were told that several times, they were adamant.

Thankfully for us, our household income went up and we would no longer be entitled anyway, but it's terrifying that they could force us to accept payments that we don't want, then threaten us with debt collectors and possible prosecution if we're not in a position to pay it back.

As regards the calculations, they told me that the method of calculating them is confidential and that the public aren't allowed access to it, which also seems like madness because how on earth could you know if it is right or not.

And that's all leaving aside the fact that they would only accept changes of details by phone, not in writing, and you normally had to wait for an hour to get to speak to someone.

This scares me! We started claiming after having ds and ss moving in almost simultaneously. We apparently got underpaid last tax by about £300 and they paid us that in three random amounts in april. I quiried it in live chat but was assured it was right. Anyway because last tax year I was partly on maternity I didn't want them to use last year's figures and estimated what we would earn this year and told them that. Now I've upped my hours and 're estimated but added a couple of grand on just in case my maths is wrong.

Am I going to get over paid and massively in debt? Next time I speak to them I will make sure to save that chats! Never ever ring them!

From the Tax Credit Casualties website -

"...we have lots of evidence that active involvement of your MP goes a long way to a successful outcome. Actually the minimum you need them to do is use their letter-headed writing paper, as it does seem to make a difference to how cases are handled.

Your MP does have to act on your behalf if you ask; it is their duty. They have access to a specialist MP Tax Credit Hotline to help them deal with your case more quickly, so tell them to use it. (MP's are very hesitant to use the their exclusive phone line dispite the desperate and urgent situations of the constituents.)

If your MP does not act on your behalf, advise them that you will make a complaint against them. It’s probably quicker and more convenient for you to deal with your MP, or their staff, via telephone or email. Both contact details should be freely publically available - to find out who your MP is go here: Find Your MP.

At this stage the MP will probably want to have one last try to reason with HMRC and will therefore write to HMRC on your behalf. This isn’t strictly necessary, but let them; if they do it they are being helpful, as long as the situation isn't currently urgent.

Otherwise ask them to forward your dispute to The Adjudicator's Office (not the Parliamentary Ombudsman, which is a possible later step)."

Just to say, my local MP did not need to be threatened with a complaint to get him to support us in our struggle with HMRC... although it is possible that other MPs may not be as willing initially I guess.

Oh god they are like a Kafka novel! They took my WTC away (about £300) for no reason and didn't even even bother to tell me they were doing it

Then they one day randomly reinstated it and have continued to increased and reduce rhem arbitrarily at least 3 times this year. And they told me I gave them a figure for childcare which I KNOW for a fact I didn't! It's way higher so now I'll have to pay some back again! I wish id taken copies of the paperwork I sent back but I didn't and there's nothing I can do to prove I didn't say what they're saying I did.

I've just been on the phone with them today actually, funnily enough. It's such an insane system!

I don't get anything other than child benefit so not sure how it works but I don't understand how they can overpay you by £3k and 6k?

But it doesn't usually work like that. They will send you a form saying 'Are these details correct?' and listing your income, your kids dates of birth etc. And saying 'we have worked out that you are entitled to £80 per month'. The details are all correct, so you assume they are right.

Then two years later it will transpire that although the letter they sent you stated you had a household income of eg £30k pa, that actual computer system that worked out your award calculated it based on an income of eg £18k pa and now you owe them money. You dig out all your old paperwork to prove that you couldn't possibly have known and they say 'yes, sorry about that, you couldn't possibly have known. But still, tough shit, you owe us money, you've got 30 days to pay it'.

Then two years later it will transpire that although the letter they sent you stated you had a household income of eg £30k pa, that actual computer system that worked out your award calculated it based on an income of eg £18k pa and now you owe them money. You dig out all your old paperwork to prove that you couldn't possibly have known and they say 'yes, sorry about that, you couldn't possibly have known. But still, tough shit, you owe us money, you've got 30 days to pay it'.

This is basically what happened to us treacle... and why eventually I had to get my MP involved as HMRC would not listen to reason.

It is ridiculous. I gave them 100% accurate figures, always called the day anything changed, always get told they overpaid and I owe them. They are currently chasing me for a joint claim from 2014 which I've already paid back my half from! There is no way of calculating what you're entitled on, you have to rely on what they tell you and then when they tell you it was wrong. Absolutely ridiculous system, can't believe they can get away with it.

I was told by them that they had no responsibility to anyone and getting our mp involved just showed that we were trying to defraud them! The year we were overpaid they based our payments on us earning £19k we actually got £17k and about £1100 in tax credits we still owe them £1k after having paid back a similar amount!

That's the problem - it is so hard to calculated it. Whereas with tax it is dead easy in comparison - eg you earned £13k one tax year. You know your personal tax free allowance. you know tax rates. NI rates. You can use an on line tax calculator. With tax you can work out in minutes whether about right amount of tax has been paid in a tax year in most cases. With tax credits the system is so complicated. I think I am very lucky I have never been eligible for them! I have heard so much about how much they have got it wrong and over paid (or under paid).

I don't know anyone who hasn't ended up owing them. It's a ridiculous system. I used to dread their letters too.

Same here op. Once I "repaid" them I stopped claiming. Thankfully I got a pay increase so I was able to do this.

It's an impossible system and seems to be designed to get people into debt. I got tax credits as I was a single parent and it just created lots of stress.

And there's me thinking it was just me! I'm still paying back a £4K overpayment ( I still don't know how they got to that figure as we hadn't got much more than that in total). They told me that I had told them my daughter was disabled- but when I queried it and asked for proof of this they wouldn't, just utterly refused to provide me with proof of this. I think I will be paying it back forever..........

They really are dreadful aren't they. CTC was a lifesaver when my then H was made redundant a few years back but once he was working again it was a nightmare. Thankfully when we were advised of an overpayment (

If it goes to the collections team, it's actually much easier. I offered them £2.50 a week and they accepted. It only goes to collections for old claims though, not current ones. My current claim I was overpaid and they took whatever they liked out of my tax credits!

I am still paying back overpayments of tax credits and I haven't claimed for years. I did everything right and I still don't understand how they decided we had been overpaid and every advisor I ever spoke to gave me a different answer so they can't explain it either. I only pay £10pm and have done for several years and they have never asked to increase it. I actually have no idea how much the outstanding balance is, I should find out. Awful system. I used to take copies of everything I sent them so I could refer to it myself during conversations with them.

how come people have such over payments?

When I emigrated from the UK I called and wrote to the TC people to tell them the date I left the country.

They continued paying £400 a month into my account for months.

I just left it in the account.

Two years later they finally asked for it back.

Incredible.

Holy shit.

I am literally in SHOCK reading this thread. Almost every single post is from someone who has been 'overpaid' by tax credits, and has had a demand to pay it all back, and ended up struggling financially! As some people have said, how the FUCK are they allowed to get away with this? Basically I guess - as someone said earlier - they send their nasty-ass fucking poison shit threatening you, and because it's 'the government' you cannot do anything about it really, and are scared into paying it. As has been said, some people end up paying back all that they have been given, and in some cases, even more!!!

Me and DH claimed when he lost his well paid job some 10 years ago and had to take a lower paid one. We didn't get masses, maybe £40 a week I think. We did the usual, gave the income from the past year, they gave the 'award' based on that amount - even though it's OBVIOUS the next year will be more with pay rises, overtime etc - and of course we ended up with an overpayment. Not as bad as some, but still an overpayment. £700. Although they didn't inform us of it for a couple of years!

Then they reduced our award which left it at £15 a week or something, and then a couple of years later - even though we had only been getting £15 a week, we ended up with another overpayment of £679!

So then they reduced our 'award' to £6 a week! Then a couple of years after THAT, we stopped being entitled to tax credits at all as our income was too high and we had no kids under 18. During that 2 years, we paid about £600 off the debt (they took it out of our 'award.')

We never heard anything for a year, and then a letter dropped on our doormat saying we owe £899!

WTAF?

I rang them and queried it, saying 'how can we owe this, you have been taking money off our award for about 4 or 5 years!' They said we owed it from 2009 and 2011 and 2013, and this was all the bits we owed added together as a lump sum!!!

Like many here, I never understood what the fuck had been going on (do THEY even understand?!) and I couldn't argue the point because I didn't know what to say or how to 'prove' I didn't owe anything!!!

At that point, I agreed to set up a payment plan of £30 a month, and made them write to me with the agreement and confirmation that we owe NOTHING ELSE, other than the £899 (which they did surprisingly!) Then I told them me and DH were not receiving tax credits at the moment, and we never wanted to claim them anymore, and we wished to close down any open claim we had, so we would not be issued them automatically. We said it has caused us nothing but problems, and we ended up worse off financially. So they sent us a letter saying they were closing our claim.

Since we made the agreement to pay £30 a month last summer, we have had THREE FUCKING LETTERS from a debt collection agency, demanding payment in full for not sticking to our agreement, and threatening court action, and that our credit record will be affected!!! (we have been sticking to it! ) When I ring HMRC, they say 'oops, that was sent in error. Ignore it!' WTF!

Cunts.

They have caused so much stress for so many people that it's sickening. I feel for people who owe multiple 1000's.

I have a similar tale to one further back... I know one lady who kept getting £400 a month (instead of the £235 she should have been getting,) because she apparently told tax credits that her husband is disabled (she never did.) She rang and wrote and everything, saying 'he is not disabled, is this right etc etc etc...?' And they just carried on paying.

2 years later, they demanded proof of her husband's disability (which she didn't have, as he wasn't disabled.)

She ended up owing them £4,000! THEY were at fault, yet her family was crippled financially for several years, as they 'adjusted the award' and left her with £80 a month.

Absolutely disgraceful. If a normal business were to operate like this, they would have been closed down!

£2000 overpayment for me. No idea how as the income I put as expected for that year was exactly the income I had for that year. Paying back £20 a month.

Yes a friend of mine was 'ticked' as having a disabled daughter and they also gave her the £400 a month which she didn't want as she wasn't by disabled - she kept the money in a separate bank account

They told her they couldn't reduce the claim and she had to take it for the year and then be reassessed!! It's a bloody joke

My story is slightly different, but my partner went from a zero hour contract to earning 16k a year (over estimated) I am disabled, informed everyone. The one thing I had say to me, is you have to inform everyone individually. So I inform tax credits, ESA and the council for housing benefits. Get a letter from housing benefits telling me that it was stopping because my DP earnt 32k a year (very basic story) got that sorted, then they stopped my ESA, because of an assessment, just got that sort and they have thoughtfully assumed I was not under enough stress and have now stopped my PIP.

My MP is fucking rubbish.

I hate being on fucking benefits, and I wish the general public would get its head out of its arse and realise that most people on them are fucking hating being on them.

I wish I wasn't disabled, I wish my partner earned enough to support us all without me either being in work or being on benefits. I fucking hate it

Wow I've just logged on this morning and have been reading through all the horrendous stories. It does make me feel slightly better that I'm not on my own in this but at the same time incredibly frustrated that they are allowed to get away with such a shockingly shit system! What's the point of having a benefit system that leaves you in debt and struggling financially? It's the fucking opposite of a benefit system! I'm going to do some research this morning to see if there are any other ways I can get help with childcare costs, I'm just not sure I can bear claiming anymore with the constant fear of overpayments hanging over me.

I think a lot of it is lies. They are praying on vunerable people or people who will lie down and pay it all back without hiring a lawyer to fight it, Me personally I'd want an itemised bill of all payments made to my account which id then add to my bank statements for that year and then hand the whole lot over to my lawyer to investigate they'd soon back down. It's just another money saving tactic thought out by the Tories