This is just a rant really but if anyone has any ideas - they will be gratefully received.

My client's husband died in November. They were on Income Support before he died and my client continued on IS after his death. Tax Credits (CTC for 3 children)were not informed until February when they stopped the claim and said there was an overpayment of £1400. My client did not make a new claim until a approx month later and we requested max backdating.

This week she received final confirmation of the overpayment and cheques worth £3800 for the backdating from December!!.

We discussed what to do and agreed we would send back the cheques and request that a new one is issued for the few weeks her claim was unpaid and the rest is repaid to cover the overpayment. I was going to request that the rest of the overpayment was waived.

I rang the tax credit helpline to inform them and I was told that we could not do this. She has to cash the cheques and sort repayment of the overpayment separately.

Now I am going to advise her to cash the cheques and request that the whole overpayment is waived. I'm not quite sure where this leaves her if it is not waived though.

At the very least, get the cheques in a savings account and make sure your client puts aside at least £1,400 to cover the overpayment - that way she won't have any problems when IR do ask her for repayment and she will recieve some interest on the money in the meantime.

Have to agree with you, tho, that this really is beauracracy to shame Franz Kafka....

Absolutley..she won't pay interest on the overpayment so she could do ok! Help her to get onto www.moneyfacts.co.uk to get a good savings account..she can get 5%+ on a lot of accounts.

I must be missing something here – obviously my brain has shut down because I’m needing my lunch.

Why has not letting them know straight away that her husband had died, create an overpayment? If they were on IS, surely, although her IS would reduce, the CTC award should stay the same before and after her husbands death. Even if she was entitled to WPA it shouldn’t take her off maximum CTC.

All explanations will be gratefully received.

Yes - it took me a while to realise what was going on with this stupid system because all you say is true.

Apparantly a couple makes a joint claim. When they are no longer a couple for whatever reason this claim must lapse and a new claim must be submitted by the single claimaint. It matters not that the amounts will be the same - the new claim must be made. If the claimant does not inform the Tax Credits Office for some time that partner has left or died, there is an overpayment. You can backdate your single claim for up to 3 months under exceptional circumstances.

There is no way apparantly that you can offset one claim gaianst the other.

And who the hell is paying for this administrative lunacy?

Ahhh... madness!
Thanks for the explanation.

You would hope that they would waive the whole of the overpayment in the circumstances – ie she has not benefited financially by not informing them.

Have you complained to her MP?

(on a side note… anyone know how to change your profile details? I’ve changed jobs – tried looking in the “User Menu” for the “Edit Your Profile” bit, but to no avail.)

hi susy .....

re editing your profile to take account of your job change ..... you'll need to re-register i'm afraid

(@ http://www.rightsnet.org.uk/dc/dcboard.php?az=register)

- cheers shawn

We are.

see also previous discussions on offsetting.

http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=104&topic_id=1119&mesg_id=1119&page=

are HMCR keeping to themselves? has anyone got an update?