I’m in a position where I’ve been overpaid child tax credits by about £8000. Not arguing the amount; though their modus operandi are nothing short of criminal. Anyway, thats another story.

Does anyone know of someone who’s been in a similar position and done a deal with them on the final amount they pay back? (ie a percentage of the total amount owed rather than a repayments schedule).

Thanks

Rich.

No deals to be done. They just take it off the following years amount. Why would you think that reducing the amount you pay back would be acceptable?

That sort of negotiation tactic only works when you owe millions in tax, call yourself a “wealth-creator” and threaten to move to Switzerland.

You may not be arguing the amount, but whose fault was it?

I had an issue that dragged on for nearly four years before they accepted that I didn’t owe anything but one month worth, because they failed to do anything after being informed of a change in circumstances.

They offered me a three year interest free loan.

As an aside how do child tax credits work if you earn below the personal allowance ? Are they only a tax relief or is it ever possible you receive actual cash ?

You get actual cash put into your bank account on a weekly basis.

It’s all worked out on income and the amount of children you have in the household under the age of 18.

Why would you think that reducing the amount you pay back would be acceptable?

Because it might not have been his/her fault and they were completely unaware of the overpayments perhaps?

Legally, it doesn’t matter whose fault it was as long as they notice within 3 years, i think.

Never had a problem with tax credits but I did have an income tax miscalculation once. I’d let them know all the relevant info every year but dep’t A didn’t talk to dep’t B so it built up and I got a significant bill.

I appealed (extraordinary circumstances form EA19 I think) which was automatically rejected, but I appealed against the rejection and then an actual person looked into it. He decided that it was their fault and that while legally entitled to the money back agreed that it was unreasonable and let me off the lot! 🙂

Also gave me £25 for my trouble and £5 to cover postage.

It’s worth an appeal. At the very least for a reasonable amount of time to pay it back. £8000 is a pretty big mistake. Did you claim for 33 kids instead of 3?

Never mind.

Does anyone know of someone who’s been in a similar position

Yes

and done a deal with them on the final amount they pay back?

No

They offered me a three year interest free loan.

This.

willjones and others, thank you.

Being self employed I had a couple of good years and an accountant who took too long to get actual figures out. The payments accumulate very quickly and once you’re in an overpayment situation it doesn’t take long for it to go bent.

I think the figures are reasonably accurate and I accept that I am partially to blame for taking my eye off the ball with them. That said the process is extremely complex, even for someone with a reasonable degree of financial savvy and that they hold some degree of responsibility for the situation. From the wording of their letters, they mislead you into thinking they are recovering the full amount when this isn’t the case.

I have no problems with them wanting repayment. However, if there is a precedent for them accepting 75p in the pound or whatever on larger debts then it would be good to know about it before writing the cheque.

The big issue I have is the way in which they ask for the money. They make repayment easy – just put it on your credit card. You’ve got 5 weeks to pay us. I’m not intimidated by it, but there’s people out there that a) will put it on the card or b) panic and go to a doorstep money lender or c) not be able to face it and step in front of a train.

They are a nightmare to deal with. I hate to think how many people have had their lives affected by it.

@mitsu, thanks Any idea how much a single parent earning £10k with a child over 18 but in full time education would get ?

OP yes a nightmare really, a balance between getting money to people who need it urgently and overpaying those who may not be entitled. I can’t see how they would accept 75% when the alternative is you put it on your credit card or they give you a three year interest free loan (equiv to roughly 10% discount)

I thought our CTC for 3 kids was around £180 a month. How did you end up with a £8K debt, that’s like 4 years of earning over £60K rather than 2.. unless you have 6 kids of course 🙂

PS – I’d sack the accountant

I thought our CTC for 3 kids was around £180 a month. How did you end up with a £8K debt, that’s like 4 years of earning over £60K rather than 2..

Well, I certainly wasn’t earning that much! I’ve three kids and CTC was in the region of £4500 a year. (The problems commenced 2011/12). Quite honestly, it’s virtually impossible to work out. I did have a very good year 2011/12 – which made the CTC drop to zero. Thus the initial overpayment of £3000. I’m still trying to get my head round the rest. I think a lot of it has to do with using estimated income rather than actuals. The accountant did my (and business partners) accounts as late as possible (against my wishes). Thus actuals were some 9 months behind. In this time tax credits are being paid every month, which are then found to be more than you should actually get.

Don’t get me wrong, I accept that I’ve dropped the ball on this. It could also be argued that CTC are not really meant for people like me who has a reasonable income and it was an inevitability that I’d be overpaid. Maybe if I’d researched it I’d have worked it out.

It certainly doesn’t help that the information you get from them is almost impossible to understand. Even now, going back over it, I’m struggling to see how it works.

One of the frustrating things is that having asked me for repayment, I’ve sent them two letters outlining my willingness to repay it and offering them a payment plan. They’ve not bothered to reply. Nor did they take any notice of my request to stop money being put into my account despite the massive overpayment already accrued. It’s bit “twilight zone” – you can’t communicate with them. Once you’re in, you can’t escape!

As I say, it’s not causing me any distress, but I know that there’s plenty of people who have been badly affected by it.

Rich.

@jambalaya, no idea I’m afraid, try this link
https://www.gov.uk/tax-credits-calculator

Same here but about £7k.
Had numerous phone calls but just can’t work it out, & I’m not exactly thick.
Sent off years of bank statements, cheque stubs for childcare, receipts from childcare, P60’s etc. But no good. Informed them at every step. Still they maintain we owe them.
They then passed it to Rossendales, a collection firm, who were actually quite reasonable. The IR instructed them to collect over 3 yrs, I said no. They said to just pay anything, to stop them dragging me to court. Apparently, they can allow 10yrs, so I worked out & started paying. After 3 months they put a block on the ability to pay so have done nowt since.
I’ve jumped through every hoop but still they claim we’ve been overpaid.
Not sure whats going to happen, but I’m sure they will come knocking.
I wish I’d recorded the calls when they assured me time & time again, that it was all correct.

To anyone thinking of applying I’d say please don’t, it’s just not worth the hassle.
And I know we’re not alone in this.