Oh, it does make my blood boil sometimes..any suggestions on the following?

Client, lone parent, worked for a period last year, notified IR when ceased work (had a baby). IR took yonks to cancel WTC. Resulting overpayment now being recovered from current CTC (2 dep kids including the baby)- client now on basic rate IS- CTC only £13 pw (should be approx £83)- client now in dire straits financially. We intend to appeal overpayment decision- in the meantime, client went to local IR (having been signposted by local jobcentre)- refused hardhip payments. Came to us, I contacted local IR- (very abruptly) told no hardship payments on the grounds that: "X's appeal may fail and then she'll owe us even more". When I queried the basis for this remark I was told the client should claim a crisis loan...

Any tactics for getting hardship payments pending outcome of appeal?

1. What you were told by local IR seems outrageous. There were certainly cases in 03-04 when hardship payments were made in similar circumstances to your client's. In any case, would a hardship payment actually increase the overpayment, or would it simply defer recovery of the already existing overpayment? (The answer to this depends, I think, on how much hardship they paid.) Can you try to get to a more senior level in local IR for a better informed decision? Failing that, what about involving the local MP?

2. Have you checked they've got their sums right? When they've processed the renewal what they are supposed to do is work out how much 04-05 credit they have already paid, deduct it from the 04-05 yearly total award and then reduce the balance by 10% (for claimants on maximum credit) or 25% to recover part of the 03-04 overpayment. A drop from £83 to £13 is very steep - perhaps it could happen if the provisional 04-05 payments (i.e. until they did the renewal) were way above the £83 entitlement - & this seems worth checking, if you haven't already.

3. Are you aware there is now a form "Request to reconsider recovery of tax credits" TC846. Can be got from 0845 900 0404. Might be worth filling in and sending off as well as the appeal. (Of course, its anyone's guess as to which will take longer to get resolved!)

the TC846 is also available @ http://www.inlandrevenue.gov.uk/forms/tc846.pdf

Not sure if it will be of much help, but yesterday in rightsnet news there was a story, Recovery of tax credit overpayments, highlighting that the Inland Revenue has now published a revised version of its code of practice on the recovery of tax credit overpayments, together with a link to the code of practice itself.

If the Revenue are not following their own code of practice in the matter, and are (in the light of what you have said) acting contrary to the Act and Regulations, then they are ultra vires.

The appropriate response in this situation is to notify them that you intend to seek leave for judicial review of their actions at the High Court (or Court of Session in Scotland).

Give them 7 days notice and copy your letter (or that from a pet lawyer) to the Chief Solictor at the Inland Revenue Solicitor's Office (google for adresses), to the relevant contituency MP, and to the Rt Hon Dawn Primarolo MP.

Thanks for all your help everyone...