Blinking tax credits.

[OneStepCloser]

I wonder if anyone can give any advice here

Late last year I got a letter from Tax Credits to say that I had been paid an overpayment in 2008 (actually 2007 but for the year 2007/08). I appealed it straight away, was sent a form and filled it in saying that why etc) Heard nothing, until I just got a call asking for money

Now, I appealed as I had a renewal form in the July and I was due to move in with my then Partner in the September, so I rang and explained. I was told that I could re-apply for two months and then cancel the credits. I said to the woman on the phone, I dont really see any point in reapplying so Ill leave it. End of story so I thought. Now they say I was overpaid as I didnt re-apply?

So five/six years later they can just call up and tell me even if Ive appealed it can take ages and they would like money or theyll take legal action? Im afraid Ive just given the poor woman a bit of a polite but firm mouthfull

The thing is, there is no proof on my side (like what??) and I presume courts will automatically side with HMRevenue, and I guess either way I`ll end up paying some sort of legal costs. They have me over a barrel dont they ?

My wife had a similar problem. They claimed she owed them money for an overpayment relating to the year before we moved in together. We didn't bother appealing. We just checked the information they had given and wrote back pointing out that according to their own figures they owed us money rather than the other way around. We haven't heard from them since.

If at the time you gave them all the required information including informing them of any changes in your circumstances and you told them about any mistakes on your award notice promptly they shouldn't be pursuing you for anything.

According to their leaflet on tax credit overpayments they shouldn't take any recovery action whilst the appeal is going on - see here. And I would hope that the courts would refuse to make a judgement against you while the appeal was in process. If they again threaten court action before the appeal is dealt with I would point them to their own leaflet. Indeed, given that they have already threatened court action if you don't pay before your appeal is dealt with I would be tempted to go on the offensive and make a formal complaint.

If the appeal fails and they take enforcement action you may have more of a problem. Even then, the court should listen if you can show that there was no overpayment.

Thank you bridge, I have taken your advice and written to them tonight and have CCd it to my MP as well. Thank you for also pointing out that they can't persure me for money whilst it is in for appeal.

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