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Beckie
Rank; Hector Tax Inspector
3 Posts |
 Posted - 16/10/2009 : 13:34:17
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I went on maternity leave for a year from August 2007 - August 2008. I was receiving SMP and so got £112 a week for the 1st 9 months, then it dropped to unpaid, although for the final 3 months I was still getting £35 a month for some reason to do with the employee benefits packages that I don't really understand. HMRC have been demanding that I pay back all of the working tax credit that I received during the final 3 months of my maternity leave as they say that I was unemployed and therefore not eligible. I have sent them dispute forms and spent a fortune on the phone to them trying to argue that being on maternity leave is not the same as being unemployed but they maintain that it is. When I ended my employment (mid August 2008) I received my final paycheck which included all of the holiday pay that I had accrued over that year and my P45, it was then that I called them to say that I was unemployed.
Does anyone have any experience of anything like this?
Beckie
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samthe
Rank; Private Primate
187 Posts |
Posted - 16/10/2009 : 20:17:36
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Don't ask me to explain why, but the rules are that you can get WTC during what is called ordinary maternity leave (i.e. the first 6 months) and then during the first 13 weeks of additional maternity leave. The entitlement to additional maternity leave is, of course, 6 months so it leaves you without WTC for the final 3 months, which is what has happened to you.
It seems likely that what the rules are doing is giving WTC for the period when you get SMP (i.e. 9 months), but not after that.
So what they are telling you is correct, I'm afraid, but in my view it is entirely unreasonable for them to expect people to know this unless it has been explained to them. I suggest you go on with a dispute in writing saying you were still employed - had not resigned - that no-one in TCO advised you that the rules changed part way through your maternity leave and that it was therefore impossible for you to know you had been overpaid. If you notified TCO at the time that you were on SMP you can also make the point that they should have informed you of the rules when you notified them, and that (if they got from you the date your SMP started) they should have taken some action themselves to stop the payments or enquire whether you had returned to work at the end of the 9 months.
It would also be a good idea to see your MP about this and ask him/her to take it up. |
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Beckie
Rank; Hector Tax Inspector
3 Posts |
Posted - 23/10/2009 : 18:24:07
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Thanks for the reply. Yes they knew I was on maternity leave/receiving SMP and nothing was ever mentioned about anything altering part way through. It seems quite bizarre that working tax credit entitlement stops with SMP payments - that leaves you with nothing but child tax credits as income.
Anyway, normally I would feel very angry about this, but I'm 8 months pregnant and due to go on maternity leave again in 2 weeks and the thought of spending the next couple of weeks going to see my MP & filling out forms is making me feel really anxious. They say that because it is an overpayment from a previous tax year I don't have the option of paying in instalments. They have sent me a letter saying that my dispute has been rejected, I have no right of appeal, that I must pay the full amount within 3 weeks or it will become a legal matter and that the debt is accruing interest. Is this true or threats in an attempt to scare me into paying? |
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missfroy2
Rank; Captain Gordon
236 Posts |
Posted - 23/10/2009 : 19:58:28
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They cannot ask for it in one payment.
If they are trying to push you into paying it in one go without any options, speak to someone like Taxaid or LITRG for help.
You can repay over 12 months, or up to 3 years without giving any income/expenditure information.
if you want to pay it longer than 3 yrs, they will want income/expenditure info.
Don't let them pressure you into making a lump sum payment, speak to one of the organisations above for help.
MF2 |
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PJD
Da Purple one
United Kingdom
268 Posts |
Posted - 24/10/2009 : 00:20:54
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hiya Beckie
"don't have the option of paying in installments" my arse! that will be another one of HMRC's bully-boy scare tactics.
but anyway, hopefully, like me, you'll have no intention of discussing repayment  . if you would like some input on your case, drop me an email at paula@taxcc.org. (just mention your the maternity leave case from the forum)
as Samthe says, its unreasonable to expect you to know facts your were not told. if you send me a copy of the rejected dispute letter I'll have a look at it for you and suggest a response.
btw HMRC don't like to explain it because it scares people and puts them off, but an Appeal is different to a Dispute, so just ignore that "you have no right of appeal" bit, cos your not appealing. and the interest bit is a very idle threat. there are only certain curcmstances in which they can add interest to an overpayment and your case certainly isn't one of them.
cheers
Paula |
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Beckie
Rank; Hector Tax Inspector
3 Posts |
Posted - 27/10/2009 : 09:53:17
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Hi Paula
Thanks so much for your offer of help. I sent an email - let me know if you haven't received it or if you need any other info.
Beckie |
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Topic |
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Maternity leave overpayment
