Hi all,

I posted here a while ago looking for advice on challenging a decision to recover a substantial overpayment. Having gathered the info./requested recordings of calls/written my letter, the outcome is that HMR&C have refused to reconsider their decision to recover.

Having just discussed the outcome with my clients, I have a couple of questions to put to you all:

Does anyone have any experience of taking a case to judicial review? I have information about the process on my C.A.B. information system but wondered if anyone has any experience of taking a case this far and what the outcome was?

Also, if there is no way that HMR&C decision can be changed, then my clients are wondering what happens when their entitlement to TC's runs out? At present they are receiving CTC only, for youngest daughter, all of which is going towards o/p. However, award is small and entitlement will probably end in 4 years once she is no longer studying, and there will still be a v.large sum ( a few thousand ) outstanding.

So far, I have seen clients who have been asked to repay o/p in full once there is no entitlement any more, or offered a repayment schedule of 12 months. However, my clients will have to make huge monthly repayments to repay o/p in 12 months so is a longer repayment period or some other kind of repayment agreement possible? I know 4 years is a long time away but my clients are really worrying about this and if they at least had an idea of their options, then this would help them feel more in control. They have considered taking a loan to repay this which just seems a horrendous thing to have to do. Regardless of the cost of borrowing then it just seems particularly mad that a benefit theoretically designed to support people is forcing them into debt with all it's consequences... I've told them that there isn't a lot of precedent about at the moment but just wondered if anyone had any anecdotal or hard evidence of what HMR&C may do in this situation. ( Have just read a post about a client who is being taken to court so I'm a little concerned...)

Thanks, Sarah

You could consider a complaint to the Adjudicators Office about the refusal of HMRC to consider not recovering the overpayment. Provided you have been through the HMRC's complaints procedure and received a final response, this should be something that they can look into.

See Adjudicators Office website for more details. There will also be a short article on the AO's office in the November members update from Disability Alliance.

I agree with Paul's suggestion. I have found the Adjudicator's Office very helpful. I've no experience of Judicial Review.

In my opinion (which I feel HMRC would not share!), once a client is no longer getting TCs any o/p debt should be treated in the same way as any other commercial non-secured debt. This means that, if they cannot pay the debt within the 12 months HMRC expect, they should provide a financial statement setting out their income and essential expenditure and make a payment offer which they can afford. They should then start making the payments. If HMRC take them to Court they should provide the same information and offer to the Court. If the Court agrees, they will make a CCJ for them to pay the amount they have offered. If they then do so without fail there is nothing more (under present legislation) HMRC can do. Of course, having a CCJ will adversely affect their credit rating.

An alternative possibility (but I sincerely hope HMRC would not do this) is that one or both of them could be bankrupted if the debt is more than £750. If they own a house with equity this could have very serious consequences as the house might well have to be sold.

Thanks guys,

Have had a look at some information about the Adjudicator. Am I right in thinking that firstly I need to ask the Director of the Tax Credits Office to review our initial complaint/request? ( Reply seems to have come from a member of the disputed overpayments team).
If we are still unhappy with the outcome we can ask the Adjudicator to investigate at that point - looks as if it can question the discretion used by the TCO and whether it has applied it's policy reasonably.

Will give it a go.

Cheers, Sarah

I think you should pursue the complaint with the AO - on their website is says that:

'We cannot consider your complaint until it has gone through the organisations' own complaints procedure. If the organisation has not had the opportunity to deal with your complaint fully, we will ask them to do so. We will tell you what we have done and say which office will be replying to you.'

So even if it is decided that you haven't made your complaint to an appropriate level with HMRC, the AO's office will ask HMRC to look at the complaint again, which may mean they decide to resolve in your favour anyway.

And as you note, if HMRC still dig their heels in, you can go back to AO's office anyway. Good luck.