Hi, I have recently visited a tenant who has got CTC overpayments of £12717.90 (including in with debts amounting to around thirty three thousand. Tnt says she has no idea how this overpayment has happened and is looking for assistance with it.
Can anyone give me some idea on how or who to approach with this please. I have contacted CTC and been 'told' to get a Recovery Reason sent to the tenant but no further information was forthcoming, so would be grateful for any advice.
Thanks
Jo

Hi Jo

I would suggest that you do all of the following:

1. Check if your client received any letters from HMRC about the overpayment.
2. Call the intermediaries helpline and ask them for an explanation.
3. Alternatively call the tax credit helpline and ask them to escalate the case to the explanations team.
4. Submit a written complaint and a dispute stating that before you can challenge the overpayment you need a written explanation as to how it occurred. (send it recorded delivery)
5. Ask for recovery to be suspended whilst this is happening.

If you have any problems getting any explanation, or want some further advice when you receive it then feel free to email me at victoriatodd28@yahoo.co.uk.

Victoria
(Low Incomes Tax Reform Group)

Write in the first instance to the tax credit office, point out the client has no idea how the overpayment occured and ask for an explanation.

If you have not heard within a "reasonable" time ask your local MP to write on the clients behalf and see if they can get the information.

Good luck - you're going to need it!

Going off at a tangent, what is the client intending to do about her other debts? If she is considering bankruptcy (should see an experienced money adviser if she is) as an option then it is possible the CTC debt could be wiped out along with the others (regardless of whether TCO are right to have imposed it). This would apply if the CTC debt was for a past financial year for which a final determination had been made. There is info about this on HMRC site, in the Tax Credits Manual.

Best thing to do is firstly call the helpline and indeed request that a Recovery Reason referral is sent to the Tax Credits Office, they would either call or write to your client. Of course the overpayment can be disputed via form COP26. Do make some contact so that your client is not pursued unnecessarily as the process escalates.