I would really like some advice on this matter as I have been informed that I have to pay back £5000 in tax credits for one year! I have four children and I am a teacher who has always worked part time. I left my last job in April 2008. I was hoping to get another job and joined an agency but I was unable to get another position until March 2009. I telephoned tax credits in July 2008 within the 3 months allowed to tell them that we were moving from southampton to london , that I was not working but was actively looking and that my husband had a new job. They updated the records to show that we had moved and my husbands income but did not update about mine. I rang back in september 2008 to say that I had still not found a new job. They updated my records to state that I had no income but apparently left my hours at 18hrs. I rang back in January 2009 to say that I might have a new job and wanted to work out how much I would recieve if i did go back to work. I was then informed that they had always assumed that I was working. I disputed this and said that the income had been nought and they replied that they thought I had been working but not drawing an income. Why would anyone, especially a secondary school teacher with four kids , be generous enough to do this! They are saying that it is my mistake and that they have paid for childcare for the year. they have never paid for childcare even though i have always used it as they say my husband earns too much and my child care element and working tax credit element has always been stated as 0. They are refusing my appeal but i would like to take it to the ombudsmen on the grounds that it is their incompetence that has caused all of this. Im sorry for the long winded post but I wanted to give you all the details.thankyou.
You can (& should) dispute that the overpayment is recoverable. This process is quite different from the appeal procedure. Go to the taxcc main site & look at the section on disputing. Then doa SARN request to get all your paperwork & CD of all calls so you know exactly what you told them. Also straight away write a dispute letter (keep a copy; send recorded delivery) & say in it you have asked for the records & will provide more info. when you get them.
It does seem most odd that their system lets them (if what you say they told you is correct) assume people are working for no pay. Maybe that happens for some self-employed people, but for an employee it is contrary to minimum wage legislation. And they have details of your employer so should know you were not self-employed. Point this out to them when you write.
thankyou sam. i have pointed this out to them about the pay. they say people can opt to work for deferred payment and are accepting no blame. i have sent the dispute letter and the reply also admits no blame. i have sent the appeal letter now with a request for my data by recorded delivery. they have cut my monthly payments by £500 with a weeks notice which has literally left my family without food. Oddly enough i have just registered as self employed and they have agreed to pay from April but im worried they will take the overpayment from these payments . will keep you posted. thankyou.