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Rank; Hector Tax Inspector

United Kingdom
2 Posts

Posted - 26/03/2010 :  12:16:52  Show Profile Send gee15 a Private Message
I dont know where else to turn so hope i can get some help here, in aug 08 recieved a letter from hmrc to say they were investigating my claim for tax credits.
called them up and was interviewed over the phone under caution.

to simplyfy things, my on/off partner was working away 5/6 days a week didnt really have a base so had some of his mail sent to my address. sure i called hmrc to get advise on this and they said unless he was there for more than 3 days it didnt matter. i also have some bank statements, wage slips from his mothers address.

well this is wrong and i have now rec'd a bill for overpayment of 40000 as they have gone back 3 years.2006/2007/2008.

we have since became a proper couple and now claim jointly which we have done for last 2 years.

i have now got a letter saying unless they recieve payment by 10am 1/4/10 they are taking me to the county court.

I have always paid the bills for the property but it was bought together. but once we moved in together he was quite violent and had a problem with alchol so when the job came up for him to work away he took it and came back at the weekends to see the kids he never contributed to the bills just gave me a small amount for kids.

i just dont know what to do my partner doesnt know about this and would leave me if he knew as we have had problems with our mortgage in the past and we nearly lost the home and i didnt tell him.

i really feel like ending it all i am never gonna be able to pay this debt off we have bearly enough money to live on as it is.

hmrc havent even taken into account what we would have rec'd if i had claimed jointly they just want everything back.

please can some one help

Edited by - gee15 on 26/03/2010 12:35:30

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Mountain View

Rank; Really should become a politician

730 Posts

Posted - 26/03/2010 :  14:07:06  Show Profile Send splashin a Private Message
Hi Gee15

Wow !!! 40k is one of the biggest overpayment's I have ever seen. Usually whenever an investigation is carried out on a claimant, it usually stems from something like a Mortgage or loan being taken out as a joint debt. You say HMRC have just demanded repayment by 01-04-2010 or you are going to county court. Surely the cannot expect you to raise that type of money, its probably more than your yearly household income. You say that HMRC have not taken into account what could of been awarded should you have made a joint application, well they won't because you are either a one or the other, a single claimant or a joint claim. I personally advised you to seek help from CAB or send an email to Others will be along to advise you further.
I know it must feel as though you are at rock bottom right now, but please remember, right now things seem so against you, there is help out there for you to deal with this problem, but you will need to speak with your partner and let him know what's happening. After all it is not as though you created this purposely, what sane human being would.

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341 Posts

Posted - 26/03/2010 :  17:39:24  Show Profile Send samthe a Private Message
There are 2 ways of looking at this:

1. If your partner was returning & staying with you each weekend (or most of them) it may be that you should have been treated as a couple. This is what TCO seem to have concluded so far. If you accept this then they have to apply a new rule just introduced which is called notional offsetting. This means they reduce the overpayment by the amount you would have been able to claim if you had claimed correctly as a couple. If you go here:

You must be logged in to see this link.

there is some information about this. If you decide to go along this route you need to dispute the overpayment on the basis that notional offsetting has not been applied. Clearly, if you do this you will need to have details of your partner's income for all the years concerned so that TCO can work out how much you would have been entitled to. There is no way anyone can work out what your entitlement would have been (i.e. how much of the 40K you would still have to pay) without having this information.

2. If you consider the TCO decision is wrong & that you were not a couple at the time concerned you need to dispute on entirely different grounds. You will have to provide evidence which satisfies TCO that you were not a couple. There are a number of issues that come into making this decision - it is not at all straightforward - & you would be unwise to try & do it without help from CAB or Paula or possibly Litrg or Taxiad.

3. Whatever you decide to do, you must contact the debt management people who have written to you to tell them what dispute action you are taking. Do this before 1.4.10 & ask for any Court action to be stopped. It is most important to stop them taking you to Court if you possibly can, because the Court is very likely to side with them & your situation will then be worse. The demand for 40K within a few days is, of course, ludicrous. What a pity they can't see that themselves!

4. If you wish, involve your MP in this as well.
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Rank; Hector Tax Inspector

United Kingdom
2 Posts

Posted - 07/04/2010 :  07:27:36  Show Profile Send gee15 a Private Message
I have spoken to the cab who are trying to deal with this for me, but will look fither into national offsetting a little futher all your help is much appreciated

z. dickinson
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Rank; Hector Tax Inspector

40 Posts

Posted - 09/04/2010 :  11:02:54  Show Profile Send LittleLady a Private Message
Hi gee, have you spoken to Debt Management to tell them you're disputing? Please do, because as mentioned above, if they don't hear from you they will assume you're ignoring it and start court proceedings, which would probably happen quite quickly for such a large amount.

The letter you were sent has to be worded that way for legal reasons - there are very few people who could pull the money out from the back of their sofa like that! It has to specify the total debt (40k), it would have had a contact number (please use it if you haven't already), it has a deadline (1/4/10) because that's the timescale they expect you to reply within... and normally they send it out with 35 days' notice of any action.

You say they investigated your claims in August 2008. How long did the enquiry take? You should have received a decision letter - with instructions on what to do if you disagreed and wished to appeal. Did you follow the procedures at that point? What kind of response did you get?

Best of luck.
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Rank; Hector Tax Inspector

3 Posts

Posted - 09/04/2010 :  16:46:39  Show Profile Send twilight a Private Message
Originally posted by gee15

I dont know where else to turn
i really feel like ending it all i am never gonna be able to pay this debt off we have bearly enough money to live on as it is.

Dear gee15, I was so sorry to read your sad story. I do hope the Citizens Advice people can help you.
If you feel desperate or suicidal, please get in touch with the Samaritans. Nothing, absolutely nothing, the "system" can do to you is worth "ending it all" for. Your life is far more important than the outrageous bill the Tax Credit people have sent you!
My best wishes for the future, for you and your kids.
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