my problem goes back about 5 years. being self employed ( owned a village shop and P.O ) it was impossible to know your earnings until the end of the year when the accountant does the books. consequently because no two years earnings were ever the same, each year had either an overpayment or underpayment. we stll "owe"about £2500.(this does not happen now because your earnings can go up by £25000 before your get an overpayment.) I think this year we will not get any working tax credit so they will want the outstanding back in one lump which we haven't got. seems unfair to have this bill due to a previous system which has now been changed as they obviously realised it was unfair. do we have grounds for appeal? or will they take instalments.?
Sympathies, I run a small business. The TC system doesn't appear to understand small businesses or self-employment. Even though you may have given the financial details on your self-assessment form and have supplied your end of year accounts from your accountant. The concept of making a loss is unknown to them.
I'm new to this forum, have longstanding dispute, can't offer any help - but thanks for posting - I see I am not alone!
If you have seen the calculations and are satisfied that the figures are correct - i.e. that you do owe this money - then I don't think you have grounds for an appeal. You could involve your MP and see whether he/she would take it up on the basis that the overpayment would not have occurred if the years concerned had had the £25000 allowance now in place.
They do take instalments - will accept over 12 months without difficulty I believe, but beyond that you have to give them an Income & Expenditure account and a payment offer to satisfy them that you can't pay it back in 12 months.
overpayments due to being self employed
Posted - 28/03/2009 : 12:10:40
