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!!!

has it affected your mental health?

Also I found the system incomprehensible. My first payment was huge and I queried it as I thought it was too much. No its not they insisted its OK. I put half of it aside and it did come in handy when I had to pay back the "overpayment".

I received several letters about amounts I had to reply - all the amounts were different. No detail that made sense. No explanation of the figures or the calculations.

I work with figures. I have a good LLB degree. It was all utter incomprehensible nonsense. I think its a deliberate tactic on HMRC's part.

There was no chance of appealing - I'm fortunate I had put part of the original payment aside and could get them off my back fairly easily. I did this because i had read so many nightmare stories of others.

This scenario isn't new.

@cueless, that would be ideal ;)

I think a campaign should focus on transparency as to how the payments and over payments are worked out. Also when errors are made, it seems that it's only the people who receive TC that suffer, it has no consequences for the TC people who made the mistake. The system is obviously too complicated as mistakes by the people who apply for it as well as the people who manage it.

The only problem is that it's very likely that a reply from TC will be that it will all be fine with the new Universal Credit.

They're absolutely FUCKING USELESS!!!!

We're currently paying back an "overpayment" of £6k!!!!!! at £47 a month for the next 10 years!!!!

I was devastated when the letter came to say we'd been "over paid" (I fucking dread those bastard brown envelopes!) and I have no idea how they work these things out so we stood little chance of contesting it in the end, I rang them up armed with a repayment plan of £30 a month till next march (when another repayment for HB finishes) then increasing as and when I could afford it but the least they would accept was £47.

I plan to up the repayment amount as and when my other debts have been paid off, so it'll be paid off by November 2020, taking 3 and a bit years instead of 10.

We're no longer entitled to tax credits as we earn too much, but even if we were entitled, I wouldn't bother claiming as we'd only end up having to pay it back when they move the goal posts....

I advise anyone and everyone to just steer bloody clear of them!

misscph1973 it has no consequences for the TC people who made the mistake.
yes so these incompetent agents can carry on making it!
They should be held accountable for their mistakes. If the mistake is on HMRC, why do we have to pay up?
I hope that someone comes forward for the next elections and say: "I will waive all tax credit overpayments reimbursements as we fucked up big time."

I've just received a letter from hmrc regarding me requesting a lower amount be taken from my monthly award as it's causing me financial difficulty. (£200 a month) they have replied saying they can't change the amount as they are already taking the the lowest amount they can. According to the letter the law doesn't allow me to appeal this decision. How did you all manage to get your repayments reduced? When I did my online income and outgoings assessment it confirmed I had a shortfall of £400 month under the current arrangement!! How are they expecting me to cover my monthly expenses if they don't lower my payment?!! Can anyone advise please

Op they're talking bollocks. Hmrc are the worst people I have ever encountered, contact nick lodge his team might help.

@achootigersmall Who's Nick Lodge?

One of hmrc big boys in regards to tax credits. He was one of the steps I took to get mine wiped off his team actually referred it to adjudicator themselves after all the failings I had, had. I also contacted my local mp, recorded (with permission from person on phone) every time I rang hmrc. It took me over a year but I got there in the end.

Can't believe how many people have had issues with over payments from tax credits too!
We have just had to pay them just over a grand in one payment (that we've had to borrow from family). They even went straight to debt collectors before trying to deal with the issue with us first!
We haven't claimed tax credit since 2015 (and received it for 1 year - started 2014), and have had to repay overpayments several times. Got a letter through last week saying we owe a further £40 .
HMRC are seriously incompetent at doing their job. We're not entitled to tax credits anymore, but even if we were I'd refuse the money, due to the financial problems they've caused us. It's seriously not worth it.
When trying to query it and appeal they said that it was our fault, as we should have checked their workings out! As if we understand how tax credits is worked out, and should have to check if they have done their job correctly .

Op if you want to pm me, I don't pretend to be an expert but I can point you in the right direction if you need some help with some email addresses to contact etc.

I told them keep your £23 a week plus the £44 I already pay and pay yourself back... got a letter saying this is not possible. Still owe over 5k and another voice adding I told them every change immediately.

Someone mentioned a subject access request above. It would be worth peiople putting one in - a request under the Data Protection Act to see a copy of what data they hold on file about you (I am not sure if HMRC have an exemption from that but they may not). Then at least you might see their calculations.

The problem is how hard it is to work out what is actually due and owed.

I do not see why they have to be so difficult about it. Presumably they take a tax year and look at your income or family income in that period or over the months you claim and then if it's under they make a sum up to a tax credit amount but instead it seems to be massively more complicated than that. My sibling in the days when they paid them to higher earners had them for a short period but never again. They ended up being told they were owed a bit (£3k?) and paid it all back at once as they were lucky enough to have savings but I still wonder if all these sums are actually over due. presumably people end up owing these sums as HMRC either always paid out much more than was due or because people's income soars in the year of claim and HMRC keep paying the higher tax credit sum.

There is a brilliant student who has written and sells an app to challenge parking fines. I wonder if he could be tempted to do one for tax credits. www.independent.co.uk/news/uk/parking-tickets-teenager-creates-website-allowing-motorist-to-them-in-minutes-10484200.html

He is now giving free legal aid to refugees too www.theguardian.com/technology/2017/mar/06/chatbot-donotpay-refugees-claim-asylum-legal-aid

There are 2 great posters on Money Matters that give great advice & can work it out very quickly.

They are both very clever.

I read yesterday that a guy took his own life after being put in benefit sanctions. I wonder how many have thought about it regarding tax credits.

£6k overpayment here from the last tax year. This all started due to Concentrix review May 2016, where they wouldn't let me make any changes for the 5 months it took them to review. I then received a letter saying all fine. We then updated all our details, salary amounts, nursery fees for youngest, DLA that our youngest is receiving and our monthly payments changed. They then decided in December we had been overpaid. We then submitted our annual review and had to supply all receipts for childcare, which resulted in £6k bill. I have stressed for over a year on this. I called to request a repayment plan, they accepted £100 per month for 5 years, didn't even ask income and expenditure, lady I spoke to just said I sounded genuine and that was acceptable.

NEVER NEVER NEVER again!

@Overtiredbackagain, I just got my letter confirming my new payment plan of £120 per month, my debt is nearly 7K, but I have already paid off over 2K in the last 2 years.

Snap, but not as bad. I claimed after my DS was born, then after the review, I owed £400 that I couldn't pay, they have accepted £20 per month. I wish I didn't bother. I only got £60 something a month from them anyway!

It does not say in the T&C that it is a loan.
Maybe that's what they should say.

@cueless, LO, good point ;) I sometimes try to think of it as just another kind of student loan, perhaps they should rename it to "parent loan"? Or, perhaps better, "a loan we give you because the government hasn't got the balls to make employers pay a decent wage and stop landlords overcharging their tenants".

I'm repaying £6000. I told them I can only only afford £10 a month- to which they agreed- I probably won't be around by the time it's paid off . Still, I feel awful that they put me in this position. Hate it!

cueless I'm with you on that one- if it's their fault why do we have to suffer for it?!!

Fucking twatting fuckface HMRC can fuck off!!! Just called them to discuss reducing my monthly payments from £200 to £50. (after being told to call the wrong department) told they cannot alter a decision made by the over payments department. I have to submit ANOTHER income and expenditure form online (can't speak to anyone on the phone) and basically 'try again' FFS. The whole thing is a fucking joke. How did you all manage to get your monthly payments reduced? I feel like I'm banging my head against a brick wall.....

Well, I did an income and expenditure form the first time I got an over payment notice and got a payment plan based on that. But second time I didn't, although this time it was handled (badly) by a company acting on behalf of HMRC. They were really horrible and would not accept any offer I made, and refused to communicate in writing, but I refused to ring them as requested. Eventually they just stopped! So when I phoned HMRC to query a letter saying I was in arrears with my payments (it was a mistake) for the first over payment, the person I spoke to asked if I would like to discuss paying back the second over payment. I asked if I could just add another £20 to the £100 I was already paying monthly, and she accepted that, no forms needed. I think it all depends on the person you speak to! So perhaps just ring up again and ask nicely?

For those in the time frame to dispute/appeal, please do! Especially if you're adamant you updated circumstances on time etc.

I was "overpaid" to the tune of 4K. I knew I had updated on time and could quote the date/time of the conversation and who I'd spoke to (am fastidious about writing things down)

I disputed/appealed using the recording of the conversation. They stuck by their guns. I had to arrange a repayment plan but had it noted that it was to be repaid if I won.

I wrote to my MP (useless)
I contacted the adjudication service
I was prepared to go to court

Thankfully after FOUR YEARS and a shit ton of paperwork I received a letter saying they had looked at it again and decided that, yes, they had been at fault. I had the biggest glass of that night I can tell you. They refunded payments made and gave me a pitiful amount to cover for postage and telephone costs

I wasn't going to contest the postage etc lest they change their minds etc.

It's a long stressful slog but no way was I going to let them get away from it.