Hi
I have a 3 year old son and get child tax credit for him . My (ex)husband and I used to do the claim jointly and our income was in the highest bracket before the cut off for getting child tax credit so we only got the basic amount of tax credit. Husband and I split in March last year and I have been primary carer ever since. I forgot to advise HMRC of change in circumstances and didn't think it mattered anyway as income had gone down so there was no way I could be being paid too much tax credit. Has been a very stressful few months but finally got round to telling them Jan 09 as moved hosue and was sorting out all the paperwork. It turns out what they have to do is cancel my old claim with husband with effect from when he moved out i.e March 08. They then have to start new claim for just me - but this claim can only be started from Oct 08 as they will only backdate a claim up to 3 months from when you tell them about change in circumstances. I have now had a letter from them saying all the tax credit I received from Apr 08 to Oct 08 has to be paid back as my claim with my husband ended Mar 08 and my 'new claim only started Oct 08. Technically to them this means there was no 'registered' tax credit claim for Apr to Oct 08 although I got paid tax credit in this period I am really pissed off as the money for between April 08 and Oct 08 was only paid at the lowest level of tax credit anyway as it was based on my old income with my husband. It seems totally unfair I have to pay this back as anyone with a child and income of under £60k is entitled to it! In fact had I notified them of us separating earlier the money I got from April to Oct 08 would have been paid at a higher rate (I didn't realise this till I contacted them in Jan 09).
I know technically I should have told them about the change but I didn't think ti mattered as income had gone down not up so it was hardly like I was claiming money I shouldn't have had. Anyone had a similar experience or advice how I can appeal this?