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AIBU

To be angry that DD is being asked to pay back child tax credits she doesn't owe.

(14 Posts)
Nandalot Sun 25-Oct-15 12:42:33

My DD has been asked to pay back a large amount of child tax credits that she has received towards nursery fees. On checking she has discovered that the amount they have actually paid her and the amount she has actually received do not tally. (her bank statements show that what she has received is much lower than they claim).
Tomorrow she will have to take time off work to sort this out. HMRC have outsourced the payment to another company and usually it takes an hour to get them on the phone. No personal appointments available.
They couldn't even get the dates right. Payments they said made from October 2014 to April 2014!
The letter she received was curt and panic inducing.
Sorry just needed to rant.

geeljay Sun 25-Oct-15 13:17:52

Tell her to take her docs to your local MP surgery.

Luckygirl Sun 25-Oct-15 17:56:07

Or CAB - she needs some back-up. These companies who take over benefits administration have targets to meet - they are not there to do right by the individual.

A friend of mine (who has cancer) is paying back a vast amount in benefit due to an error - it makes no difference that the error was not hers and she had pointed out to the agency that she did not think she was entitled to it and they told her she was!

mcem Sun 25-Oct-15 18:44:32

While DD was with evil ex-partner they received working families' tax credits, paid through his salary into his account. She has now been told that a percentage must be repaid. Went into his account but she apparently is responsible for paying back! He won't discuss it and she's the one who is being chased to pay it back!

Luckygirl Sun 25-Oct-15 18:48:25

For goodness sake mcem - that is truly iniquitous.

Iam64 Sun 25-Oct-15 18:57:16

Luckygirl, I fear the whole system is 'truly iniquitous', or at least has the potential to be.
Our fabulous admin support member of staff found herself being asked for £3000 from the working families tax credits system about a year after she'd returned from mat leave. She was beside herself with anxiety. The fact that it was later found to be inaccurate and unnecessary meant nothing because she'd spent a year (with her husband) feeling totally under pressure. Neither of them earned much, both were the much appreciated 'hard working families' - just awful. It links to the discussion on another thread about the need for people to earn a genuine 'living wage'. I'd cut taxes right down at a specific level, i.e. no tax, contribute towards child care in a meaningful manner (i.e. not 30 hours a week) and pay good child benefit to lower income families. Am I bonkers?

Antjexix Mon 26-Oct-15 07:10:35

We got working tax credits years ago and I always called them and informed them about any changes in our circumstances. In the end they told us we owed £1790!!! I was furious and rang them several times to no avail. We refused to pay but they just changed DH tax code and took it through his wages!!! I just couldn't believe it.

Iam64 Mon 26-Oct-15 07:22:35

It is infuriating that large organisations and very rich individuals can use various tax avoidance schemes, whereas your classic 'hard working families' get shafted every time.

Velogranny Mon 26-Oct-15 09:51:26

We got caught by this, years ago. We were awarded the credits, only to be told a couple of years later that we had to pay the lot back. It wasn't our mistake but that made no difference. We had fought so hard to keep afloat during the previous recession, we were still struggling (not on any benefits at all) and this almost wiped us out. Did they care? Of course not.

durhamjen Thu 05-Nov-15 15:11:18

www.politics.co.uk/opinion-formers/chartered-institute-of-taxation-ciot/article/hmrc-s-poor-customer-service-tackle-the-causes-not-just-the

Looking at HMRC from a different angle. Whose fault is it that there are so many problems collecting tax?

KatyK Thu 05-Nov-15 16:48:18

A few years ago my DD had a letter from HMRC enclosing a cheque for about £1500 which they said they owed her in tax credits. She felt it was a mistake and rang them a total of five times (in the days when you could actually get through). She was assured by five different people that it was correct and it was her money. As money was very tight, the money was soon spent. She then received a letter saying that it had indeed been a mistake and they wanted the money back. As she couldn't pay it back in a lump sum, they stopped her tax credits completely and she has never received any since.

rosesarered Thu 05-Nov-15 16:51:09

HMRC get lots of things wrong, had a letter just this week,about something that they had got completely muddled, in spite of our clear explanation given some months ago.

ninathenana Thu 05-Nov-15 17:24:48

The year after I retired they claimed £234 back from me in over paid tax credits from the previous year.
I'd never claimed tax credit and hadn't paid tax for years as I hadn't worked enough hours a week since returning to work after DD was born !
I bet everyone of us has a HMRC tail to tell.

vampirequeen Thu 05-Nov-15 19:37:29

I was still paying back overpaid tax credits when my youngest daughter was 23. They had totally miscalculated for years but of course it's never their fault. In fact I still owe them money but as I retired through ill health they can't deduct money from my wages anymore.

DH is being chased by HMRC. They say he owes them £138.50. This was actually paid back in March 2014 but somehow they've either paid it into someone else's account or it's floating around in the mysterious 'don't know where this should go' account. I spoke to them again today. Now I have to send them a letter detailing the bank sort code, account number, cheque number and the date it appeared on the bank statement so that they can attempt to trace the payment. Meanwhile they're sitting on over £1000 that was paid by his pension even though he doesn't earn enough to pay tax. Apparently he can't have that back until after April 5th just in case he has a massive increase in income between now and then. They must think we're going to win the lottery....let's hope they know something we don't know grin