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waycam
Rank; Hector Tax Inspector
United Kingdom
1 Posts |
 Posted - 22/03/2009 : 23:35:24
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Hi all, new to site having major problems with tax credits
We have been having problems with the tax credits for the last few years. About 3 years ago when we completed our annual review and declared our increase in earnings we then ended up getting our payments stopped. I then went to the local tax office and managed to get manual payments setup, last year i had to go again to the local tax office to get the manual payments continued as they had not finalised the prievious 2 years awards and so could not automatically calculate our award and hence not pay us.I had been advised by my accountant that as we had re-morgagaged our house and sunk the money into my business we could recoup this money in the form of loan repayments which would not be classed as taxable income so did not need to be declared to the tax credit's. Most of our income into the house was made up of this money.
I then had to close my business in Jan this year which means that not only have i lost loads of money we have also lost all the money we remorgaged to put into the business and hence our main income. We both signed on for a few months then i setup another company which is giving me a small income for now enough to pay the morgage at least. Unfortunately the tax credit people reduced our payments due to jobseekers, then reviewed our previous awards and came up with an initial figure of £13,000 overpayment.I declared i was working at the beginning of march and thought that the tax credits would all be sorted out at least with getting some as on the phone last week they told me they would pay £592 per month as of april. We have now recieved a letter saying they have not had a review form that we sent so are stopping our tax credit award and therfore have been overpaid by over £4,000
I have already applied for a review form to stop the reclemation of overpayment. I would like some help with regards to how to proceed with contacting the tax credits and also if i am correct that i do not need to include the repayments of the money we put into business?
Need to act quick so that i can get some payments for april just to surive through next month. any help apprieciated.
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Edited by - waycam on 22/03/2009 23:36:37 |
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samthe
Rank; Private Primate
188 Posts |
Posted - 23/03/2009 : 21:36:04
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1. If you are still entitled to tax credits, then they should not stop your payments entirely (unless your entitlement is minimal - about £10 per week or less). What they should be doing if they are recovering what they regard as an overpayment is to reduce your ongoing payments by 25%. You need to contact them & try to get this sorted out.
2. If they say your claim has been terminated (this can happen erroneously for various reasons) then it can take forever to get it reinstated. But there is nothing to stop you submitting a new claim.
3. I'm not sure whether your accountant's advice was correct. I suspect (but am not certain) that it may depend on whether you were an employee of the business. For example, if it was a limited company & you were an employee of the company then I think that for tax credit purposes the income would be whatever was on your P60 at the year end. But if you were self-employed then it may be more difficult to separate from own income from that of the business. |
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PJD
Da Purple one
United Kingdom
269 Posts |
Posted - 29/03/2009 : 00:41:29
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hiya
i can't answer re the loan issue, but as Samthe says about the terminated claim; many and various dumb reasons why this can happen and a nightmare to sort out, but make a new claim so that you are getting some money in.
what year did they say are missing a Annual Review form for? cos it surely can't be the year just ending, cos it hasn't ended yet.
when you receive the Request [to reconsider recovery] form (not review form  ) tick 'we made a mistake' for question 10 and just write in question 11 something like you; "dispute responsibility for the overpayment and that you demand a breakdown of how ALL the alleged overpayment's occurred, including when and why recalculations where made and were the figures used fro these recalculations came from."
and get the form sent in asap. (in fact you can download it from step 1 here http://www.taxcc.org/Dispute_1st_things_1st.html)
until you get some more answers about what really happen on your case, you can't fight the issues specifically which is why we suggest doing the first step as above.
if they do still insist that one or all of the overpayment's is about a missing review form then my post (dated today) on this thread might be of interest to you http://familytaxcredit.forumco.com/topic.asp?TOPIC_ID=1419&
but in summary my advice is ...
1) make a new claim for Tc (ring the helpline for an application pack). This is separate to disputing the overpayment's.
2) complete the Request to Reconsider Recovery form ...
3) and step 2 our dispute steps (linked above) to claim copies of your data. and get them both sent in asap.
cheers
Paula |
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Years on manual payment now no payments
