Also posted this in the questions/answers cases forum. Sorry for double posting, but wanted to make sure it is seen.
Due to the way tax credits were calculated in the first year (2003-4 on 2001-2 income) I was over paid something like £4500 in the first year.
2001-2 was my first self employed year. Like many people who start a new business I only made a very modest profit. I entered this correctly onto the WFTC form and was paid tax credit in 2003-4. At the end of 2003-4 I submitted my actual profit figures. By now my business had been going for a couple of years and I had made a profit which was considerably higher than in 01-2. I entered this into the WFTC form and used this as the basis for the following year. Instead of reducing my payments right down to recover the overpayment they carried on paying and deducted a tiny amount for overpayment.
So here I am in 2008 with a tax credits debt of £7700, Around £4500 of this is from the first year. £1200 or so is from the second year and smaller amounts from following years.
This debt keeps me awake at night. I phoned the HMRC WFTC helpline and explained all of this and asked what I could do. My offer to start repaying was refused on the basis the system does not allow for that unless you stop claiming all together, in which case the whole overpayment is due. I was actually told that I should have "fudged my figures" from the start and written down I had made more profit than I had. I wonder if they have that on tape?
Now the problem is that I'm getting close to the threshold for claiming tax credits. I have been informed by the helpline that when this happens my case will be passed to collections who "might" allow me up to 12 months to pay. Now I can tell you that with paying large amounts of tax I don't have that £7700 just sitting around in the bank.
Also I had a letter, about 4 or 5 months back now, saying HMRC had opened an enquiry into my tax credits claim from a previous year. It said something like "every year we check some tax credits claims to make surew we have paid you the correct amount".
The letter said I didn't have to do anything and they would write again later on. They didn't ask for any information.
The letter ended with "If you have any new information about your claim please contact us".
I haven't heard a thing from them since.
I did call the helpline and ask why they didn't look at my self employment tax return to see my figures are correct. The person on the helpline said there was no record of an enquiry in my notes.
I think it's important for you to get a SAR application in & see exactly what they have on their records - including all phone conversations. You'll find out about this in my reply.
Geordie: "Yon lass's gorra fyece lyke a bagga spanners!"
English: "That lady's face is rather unnatractive"
Don't worry be happy we have a unique method of contract law that you can use for free to get HMRC into debt with you. To get HMRC into debt with you simply copy the ICHOR Trust Covenant onto the back of every letter you send to HMRC and copy your letter with ICHOR Trust Covenant on the back to the Queen and the Office of the Prime Minister and First Lord of the Treasury making sure that you print OPEN LETTER on the left hand side of your letter just above the Dear Sir/Madam introduction. The ICHOR Trust Covenenat is available at www.ichortrust.co.uk simply copy and use it.
Compliments Trustee@ichortrust.co.uk Ps We already know that HMRC is commiting theft of your right to a fair hearing by fraud and deception of authority that is misleading High Court Judges into maintain the ballance of power in favour of HMRC.
self employed. £7700 overpayment
Posted - 25/01/2008 : 16:59:50
