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chrissyfp1
Rank; Hector Tax Inspector
1 Posts |
 Posted - 29/01/2009 : 09:32:03
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Hi there, i'm hoping someone can help me.
Since moving in with my self employed partner in 05 my tax credit awards have been overpaid every year!!! I've over estimated his earnings by around 1.5k to prevent overpayments but they've still somehow managed it? 
I've sent in 2 appeals and have heard nothing from them, last one i sent was in Nov 07, the people on the 'helpline' have told me they have been received but a decision has not been made. They temporarily stopped collection of overpayments then started again without warning.
On this years provisional award letters they have been adding 'balancing payments' on and 'adjustments to put my record right' but when i phone the tco no-one has any idea of why they are there? I've spent 2 hours on one call including speaking to a team leader to just get no where. People have guessed so when i get off the phone and check what they've said, it turns out to be c**p! On this years awards letters it now says that as well as me owing them money... they owe me as well??????
I geared myself up to ring them on Monday and spoke to a sane person who could clearly see it was just a mess and said she'd give it to a team leader who would then pass it to complaints dept (the same dept that i have been told many times before by staff on the tco 'helpline' that it doesn't exist and you can only appeal!).
Before ringing i decided to have another look through all the letters etc and compare what the provisional over estimated earnings figures say i should have recieved and check them against the actual earnings figures award. It appears that the two letters are the same, the only figure that has been adjusted is the actual earnings. The reduction due to income figure is exactly the same as it is on the 1.5k over estimate? I may be having a blonde moment but it looks to me as if, when the actual figures are inputed then it should recalulate the reduction due to income etc but it quite simply hasn't! Similar to if you're doing a spreadsheet and have forgotten to put a formula in? Could it be the case that the TC software is really that rubbish that a basic formula is missing or is it supposed to be like that? 
My partner also earned less than the tax year b4 so no matter which figures they based it on, either the previous years or my over estimate i can't see how they can have possibly over paid me!
Any enlightenment would be really gratefully received.
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missfroy2
Rank; Captain Gordon
236 Posts |
Posted - 29/01/2009 : 11:55:11
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It is difficult for anyone to say without seeing the notices, it would therefore be best if you took them along to someone for advice such as CAB, Taxaid, LITRG.
However, it is possible for two award notices to show two incomes but have the same reduction in income.
This is because whilst they need your actual figures (and these are shown on the award notice) tax credits may be based on previous year income so both awards would use the same reduction due to income figure.
An example might help. Say your 2007-2008 income was £20,000. At the start of 2008-2009 you estimated that your 2008-2009 income would be £25000. Your new award notice would show the estimate, but the reduction due to income amount would be based on previous year income (£20,000).
At the end of 2008-2009, you will give hMRC your actual figures. Say you really had income of £30,000. Your new award notice will show income of £30,000 but the reduction due to income amount would still use £20,000.
This is because, if your income has not risen by more than 25,000 between last year and current year, tax credits will be finalised on last year's income.
So yes, it is possible.
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Alan the Geordie
Da Purple one
2787 Posts |
Posted - 29/01/2009 : 13:57:39
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>>I geared myself up to ring them on Monday and spoke to a sane person who could clearly see it was just a mess and said she'd give it to a team leader who would then pass it to complaints dept (the same dept that i have been told many times before by staff on the tco 'helpline' that it doesn't exist and you can only appeal!).<<
Another of HMRC's lies is that "you can only appeal"
WRONG !! ........ you can DISPUTE if you think their sums are wrong.
In a few other posts on this forum, our excellent Miss Froy has explained the difference between an Appeal & a Dispute - as well as a whole host of other useful stuff which is well worth searching for & reading.
"The best way to take control over a people and control them utterly is to take a little of their freedom at a time, to erode rights by a thousand tiny and almost imperceptible
reductions. In this way the people will not see those rights and freedoms being removed until past the point at which these changes cannot be reversed."
Adolf Hitler |
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missfroy2
Rank; Captain Gordon
236 Posts |
Posted - 29/01/2009 : 16:48:15
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In summary the difference between the two is:
APPEAL: This is a challenge against entitlement. You are essentially saying that they have calculated your entitlement incorrectly. (so for example have not included the disability element when they should have done, decided you were a couple when believe you were single etc....)
The good thing about an appeal is that it is a formal route. It leads to a tribunal independent of HMRC. You cannot appeal the recovery of an overpayment.
DISPUTE: Most people fall under this heading. This means that there is an overpayment (you received more than your entitlement) but that you are asking them not to recover it from you because they made a mistake and you met your responsibilities (kept them updated, checked notices etc).
The bad thing about disputes is that they can take a long time to be answered, and HMRC are the decision makers. You can escalate it to the Adjudicator (after complaining to HMRC twice) but even the Adjudicator is just checking that HMRC applied their own guidance.
Hope that summarises. Most people need to dispute rather than appeal, but it is incredibly important to appeal if you can because there are time limits of 30 days from the decision, with a late appeal up to a further 12 months if there are grounds.
That is why it is best to seek professional help.
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Big mess!
