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 Tax Credit Overpayments
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 Ruling: Benefits claimants do not have to pay back
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Ponomis
Rank; Hector Tax Inspector


4 Posts

Posted - 08/12/2010 :  20:48:27  Show Profile Send Ponomis a Private Message
Has anyone else seen this on the news.....
You must be logged in to see this link.

Surely, this can easily transfer over to Tax Credits? I'm currently fighting HMRC as they have admitted making a mistake that led to an overpayment, but are still demanding repayment. My basic knowledge of law makes me think that if you did get to court and could prove that they made a mistake, then you can just refer to this case, or am I completely wrong?

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Alan the Geordie
Admin



3032 Posts

Posted - 09/12/2010 :  01:55:19  Show Profile Send Alan the Geordie a Private Message
quote:
Originally posted by Ponomis

Has anyone else seen this on the news.....
You must be logged in to see this link.

Surely, this can easily transfer over to Tax Credits? I'm currently fighting HMRC as they have admitted making a mistake that led to an overpayment, but are still demanding repayment. My basic knowledge of law makes me think that if you did get to court and could prove that they made a mistake, then you can just refer to this case, or am I completely wrong?



It would be nice if it would apply, but I don't think it does - or will.

Tax Credits (as far as I know) are NOT considered to be a "benefit" in the way other "benefits" are and are subject to Tax Law which other benefits are not.

I don't really understand why this is - except that it was designed that way by the unlamented ex-PM Gordon (The Lying Scotsman) Brown.

Perhaps one of our more knowledgeable members would like to coment on this?

"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
Mod



298 Posts

Posted - 09/12/2010 :  08:18:05  Show Profile Send missfroy2 a Private Message
No, this case is unlikely to apply. The reason is because of the way the law is written. On DWP benefits, which is what this case was about, the statute law only allows them to recover an overpayment caused by failure to disclose or misrepresentation.

However, DWP tried to argue that even though the statute says that, common law allows them to recover any overpayment of public money because the person was never entitled to it (even if they caused the mistake).

What this court case decided is that there is no general, common law right for DWP to recover overpayments. They can only recover those set out in the law (failure to disclose & misrepresentation).

Tax credits are different, not because they aren't considered a benefit, but simply because of how the law is written. The Tax Credits Act allows HMRC to recover all overpayments no matter how they are caused (including official error). It is not limited to failure to disclose and misrepresentation.

Hopefully that explains why the case wouldn't necessarily help with tax credits.

MF2
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Alan the Geordie
Admin



3032 Posts

Posted - 09/12/2010 :  13:11:10  Show Profile Send Alan the Geordie a Private Message
Thanks for that Missfroy ...... I stand corrected.

"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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