Tax Credit Errors - current situation and what should be done now?

[Earlybird]

Today's newspapers have a story on the 'Tax Credit Fiasco' and outline the software glitches that caused overpayments to 1.5M families - some for quite significant amounts. The article further outlines the upset and distress caused to individuals/families as the government attempts to reclaim the overpayments.

What isn't clear in the story is whether or not people were aware they were being paid more than they were entitled to.

What do you think should be done about the overpayment fiasco?

This always worries me, Ours recently went up after the review and we were also paid a lump sum because we were underpaid

I phoned, took his name, wrote down the time we spoke ect... and then asked him to check it, check it and check it again. Turns out it was right but I still think its wrong

I think people fill in the forms ands recieve what they recieve.

People have even been known to question the amount only to be told 'oh its right'

But then recieve a letter, months , years later saying it wasn't and they have to pay it back.

Its the tax peoples mistake.

Families shouldn't have to pay it back in my opinion.

They should do their job properly in the first place!

I have to fill my form in this week and just KNOW I have been overpaid but they just would not listen.

some is in an account so I can pay it back but they will have to wait for the rest.

Any idea how little they let you pay back per week/month?

I think the trouble is that it's impossible to know what you're supposed to get in the first place, so how are you supposed to know that its wrong. Its a ridiculous system imo.

There in lies the problem though. The figures seem magicked out of thin air so it is completely impossible to be able to judge for yourself any tax credits owed.

It is ridiculous to expect families to pay back on their error - perhaps £5 per week or something that won't cripple the family finances. It is a system that is supposedly there to help not hinder.

My friend was convinced they were overpaying her and she rang them. They said... oh well take the money for now and we will sort it out next year. The next year they want 1200 off her.

They then tried to do the same thing again this year... oh take the money and we'll sort it later. She told them no.. she didnt want ANY money off them ever again and would manage without their help.

it terrifies me

I keep shoving mine as extra payments on the mortgage thinking if they ask for it back I can always borrow it again

they are sending me a really odd amount this year and I have queried it and they say it is fine but it seems very odd indeed

I can't trust it; I'd feel terrified spending it in case they asked for it back

and I'm by no means rolling in spare money

Well we were over paid, i phoned them & questioned the amounts & they said it was "right" in fact i phoned them twice, i even started a thread on mn saying i knew we were going to be over paid, but they insisted it was right & guess what?

Got our new forms back about 4 weeks ago to be told we had been over paid & would now recieve no payments till november 2009 !!

Whole thing is a sham! would rather do without there money to be honest!

i'm the same as scoobydoo i wont get any money now until 2013 when dd is 10, i foned and questioned them too that was over 5 years ago and it doesnt seem to be any better, i think there no hope