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Top Working Tax Credit & Child Tax Credit topic #1615

Subject: "overpayment - notification of income" First topic | Last topic
claire hodgson
                              

Solicitor, Askews Solicitors, Thornaby, Stockton on Tees
Member since
17th May 2005

overpayment - notification of income
Mon 06-Mar-06 10:03 AM

following on from the previous post on tax credit disregard, but a slightly different tack.

i have a client who started work 19.04.04; he only took the job as he was assured he would get tax credit, as he'd been on long term sick....

anyway, he filled the form in immediately after starting work, told them his previous year's ncome (a very small amount of benefit) and told them all about the job he was starting. It seems he did all this in writing, not on the phone; and there is no where on the form to put in what your wages are going to be.

he assumed that the revenue would get that information from teh employer, and didn't notify a change of circumstance as he had not in fact had a change of circumstance.

When they assessed at the end of the year, of course, he had been massively overpaid tax credit and they want about £2,600 back that he doesn't have.

I have asked them to excuse this and not recover it, as clearly there is an ambiguity there (and client was misled, as well, it seems by those trying to get him back to work...)

If anyone has any other thoughts, they would be appreciated ....

  

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Replies to this topic
RE: overpayment - notification of income, Derek, 06th Mar 2006, #1
RE: overpayment - notification of income, claire hodgson, 06th Mar 2006, #2

Derek
                              

CAB Adviser, Esher CAB
Member since
09th Mar 2004

RE: overpayment - notification of income
Mon 06-Mar-06 01:27 PM

I assume you have COP26. The test is supposed to be whether the claimant could reasonably have been expected to know he was being overpaid. What was on the award notice he received? It should have quoted the income he gave them (i.e. previous year's) and said he should notify them if it increased by £X (probably £2500). If it did, and he did not notify them, he is on rather weak ground. Nonetheless, as he wrote at the outset and told them what was happening (and - if the claim was for WTC - they should not have processed it without knowing he was working) it could well be worth pursuing - if necessary to the Adjudicator of via MP to Ombudsman.

  

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claire hodgson
                              

Solicitor, Askews Solicitors, Thornaby, Stockton on Tees
Member since
17th May 2005

RE: overpayment - notification of income
Mon 06-Mar-06 02:18 PM

mm, that's what I was thinking ...they knew he was working, certainly, it was all on the form.

  

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Top Working Tax Credit & Child Tax Credit topic #1615First topic | Last topic