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Top Working Tax Credit & Child Tax Credit topic #2513

Subject: "Tax Credit Act 1971" First topic | Last topic
CAB11
                              

Welfare Benefits Caseworker, Citizens Advice Bureau, Mountain Ash, Mid Glamorga
Member since
09th Jul 2007

Tax Credit Act 1971
Mon 09-Jul-07 12:58 PM

I wonder if anyone has come across this situation before? A client was overpaid WTC/CTC, TC846 completed and then ignored by the TCO. Numerous phone calls and letters later still ignored and a summons was issued for the full amount. In defence it was pleaded that as per code of practice recovery would be suspended until appeal outcome and that this was ongoing. Turned up to court with client to be informed by the judge that his hands were tied under the Tax Credit Act 1971 once the demand certificate has been issued there is nothing the court can do even though the appeal had not been heard. Can anyone give me their opinion on the matter as I am now in the process of raising a complaint and also bringing the use of the Tax Credit Act 1971 to enforce overpayments in the court to the attention of other agencies. Thank you.

  

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Replies to this topic
RE: Tax Credit Act 1971, jj, 09th Jul 2007, #1
RE: Tax Credit Act 1971, BobKirkpatrick, 09th Jul 2007, #2
RE: Tax Credit Act 1971, CAB11, 09th Jul 2007, #3
      RE: Tax Credit Act 1971, NicolaB, 09th Jul 2007, #4
           RE: Tax Credit Act 1971, JohnA, 09th Jul 2007, #5
RE: Tax Credit Act 1971, Laura1970, 11th Jul 2007, #6

jj
                              

welfare rights adviser, saltley & nechells law centre birmingham
Member since
21st Jan 2004

RE: Tax Credit Act 1971
Mon 09-Jul-07 01:46 PM

I haven't come across this before, but have been similarly concerned about the use of the Taxes Management Act 1970, which provides that a signed certificate by a tax official is sufficient evidence for the Court. (This sounds similar - have you tracked down a copy of the Tax Credits Act 1971?? TMA 1970 has been is referred to in section 29 of the Tax Credits Act 2002 - i don't know anything about TCA 1971 - it must be a different type of tax credit however...)

I was worried that the Courts would take the approach you describe, but in the two cases I was involved in however, although TMA certificates were submitted by HMRC, the Courts _did_ get involved, or at least, were prepared to get involved with the defence against the claim, and we were granted a set aside in one case, and an adjournment in another...

my untested view is that there must be an HRA Article 6 argument against the use of such powers when the defendant has been denied the opportunity to dispute the overpayment.


  

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BobKirkpatrick
                              

Welfare Benefits adviser, Notting Hill Housing Trust, London
Member since
18th Feb 2004

RE: Tax Credit Act 1971
Mon 09-Jul-07 01:48 PM

There appears to be no such thing as the Tax Credit Act 1971.......

  

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CAB11
                              

Welfare Benefits Caseworker, Citizens Advice Bureau, Mountain Ash, Mid Glamorga
Member since
09th Jul 2007

RE: Tax Credit Act 1971
Mon 09-Jul-07 02:09 PM

Thanks v much and I do apologise I should have quoted Taxes Management Act 1970 and not Tax Credit Act 1971. Researching Tax credits and tax in general has befuddled my brain or whats left of it. It would appear that courts approach the problem differently going on your experience. Thanks again for the information.

  

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NicolaB
                              

Welfare Rights Adviser, Camden Community Law Centre
Member since
08th Dec 2004

RE: Tax Credit Act 1971
Mon 09-Jul-07 03:35 PM

This is happening all of the time in Camden, no idea why. We got opinion from counsel who confirmed that client's options were limited to asking for stay on proceedings pending the outcome of any dispute and/or set aside after the event.

Taxes Management Act 1970 says that only evidence that the Revenue require to get judgment in the county court is, as stated above, a certificate of an officer of the Inland Revenue stating that the debt is owed. For TC purposes, this is confirmed by s29(3) of the Tax Credits Act 2002.

Further, for social security purposes, the 'certificate' in TC cases need only be the letter notifying the client of the overpayment....

  

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JohnA
                              

Chairman, Low Incomes Tax Reform Group
Member since
18th Mar 2004

RE: Tax Credit Act 1971
Mon 09-Jul-07 04:41 PM

Whether it is the Attachment of Earnings Act 1971 brought into play by Schedule 3 of the TCA2002 or the Taxes Management Act I think the whole thing is awful.

On Wednesday I go to the next Tax Credits Consulting Group with an agenda longer than my arm, but if anyone wants to post cases dealt with in this way to the contact page of www.litrg.org.uk I will try and get the guts of the issue put on the table.

  

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Laura1970
                              

Tax Credits Adviser, HMRC, Bathgate
Member since
11th Jul 2007

RE: Tax Credit Act 1971
Wed 11-Jul-07 04:42 PM

Why not ask for a SAR (subject access request) for your client? This must be requested in writing but all of the details (address, what to put in letter etc) can be requested from the Tax Credits helpline. The client's entire record can be accessed, from paper files to computer records to records of phonecalls, which are kept indefinitely. This would also detail what had been received by the Tax Credits office with regard to the inital TC846 and subsequent correspondence sent. Good luck.

  

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Top Working Tax Credit & Child Tax Credit topic #2513First topic | Last topic