cancel
Showing results for 
Search instead for 
Did you mean: 

Working & child tax credits beware.

glloyd
Rising Star
Posts: 1,652
Thanks: 20
Fixes: 1
Registered: 06-04-2007

Working & child tax credits beware.

This is heads up by someone who made the silly mistake in updating details via the phone. Last April (200Cool I updated my wife's P60 for 2007-2008 because the original award was made on an estimate and we did not want to get into a situation where we would have to pay money back.
In May 2008 we received the annual renewal package which we filled in with our JOINT income and duly received the award notice a couple of weeks later. This May we again received our renewal package and once again returned them without delay. To our dismay they had taken my wife's P60 update as an estimate for our joint income for 2008 - 2009 and have demanded we repay a considerable sum of money. They say it was MY responsibility to check the details were right and not their responsibility to get them right even though we provided them with the correct info.
The problem is if you make any update on the phone you have no proof of what you  told them or what they have done with the info. I would urge anyone who claims working or child tax credit to NEVER update anything by phone. Send it by recoded post and keep a copy for years.
Hope this will help someone.
14 REPLIES
VileReynard
Seasoned Pro
Posts: 10,583
Thanks: 192
Fixes: 9
Registered: 01-09-2007

Re: Working & child tax credits beware.

I've found that whatever you tell them doesn't bear any resemblance to your "award".
If it's a large amount, take it.
If it's not so good, then go through a telephone call "amendment".
They can only take back money by reducing your payments.
Provided you have given information in good faith, they can't demand a lump sum repayment.
See http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/DG_073813

Moderator
Moderator
Posts: 17,250
Thanks: 904
Fixes: 104
Registered: 11-01-2008

Re: Working & child tax credits beware.

we got bitten too and had to pay a load back by monthly instalments even though we knew we'd kept them informed.
Appealed and lost so had to pay excess back by direct debit, once again easier to pick on those of us that have think we have done things honestly than going after the fraudsters Sad
Will Moderate For Thanks
glloyd
Rising Star
Posts: 1,652
Thanks: 20
Fixes: 1
Registered: 06-04-2007

Re: Working & child tax credits beware.

What's really got my back up is they stated our correct income for the previous year in two letters they sent, then (they claim) gave an award on an "estimated" income for the current year that I never gave. They say unless I can prove what I said over the phone I have to pay. How can you prove what you said on the phone and what some muppet entered into their system?
I'm not taking it laying down, I'm going to take it to the ombudsman and then to the parliamentary ombudsman via my MP if that does not work. I don't mind paying up if it was my mistake but not if it was theirs.
VileReynard
Seasoned Pro
Posts: 10,583
Thanks: 192
Fixes: 9
Registered: 01-09-2007

Re: Working & child tax credits beware.

glloyd
Rising Star
Posts: 1,652
Thanks: 20
Fixes: 1
Registered: 06-04-2007

Re: Working & child tax credits beware.

My income certainly did not rise by £25.000 in fact our joint income was no where near that figure let alone rise above it. As far as I can tell you would not get any working tax credits if your joint income was £25,000
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: Working & child tax credits beware.

Bear in mind the BBC news item is 2 years old and I would have thought that rules were changed to stop overpayments.
VileReynard
Seasoned Pro
Posts: 10,583
Thanks: 192
Fixes: 9
Registered: 01-09-2007

Re: Working & child tax credits beware.

Ha!
Tax credits were one of the first really major public finance fiascos where computers were thought to be the universal panacea.
I bet little has changed, except that it's failures have since been dwarfed by even more stupid projects.

itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: Working & child tax credits beware.

Just been looking at the Working Tax Credits website I don't believe that they do basic mathematic mistakes
Quote
Both elements are reduced together, so the reduced amount is £9,000 - £6,420 x 39% = £1,006.20.

If I do that calculation on my scientific calculator the answer is £6496.20  Roll eyes
Lurker
Grafter
Posts: 1,867
Registered: 23-10-2008

Re: Working & child tax credits beware.

If I do it on my standard calculator I get the same answer as them. Tongue
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: 07-04-2007

Re: Working & child tax credits beware.

But I only have scientific calculators, even the calculator in Windows give the £6496.20 answer. Obviously it's running in scientific mode.  Grin
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Working & child tax credits beware.

I did it on a simple bog standard calculator and got £6496.20
hint to James G ()
Community Veteran
Posts: 6,586
Thanks: 206
Fixes: 14
Registered: 16-02-2009

Re: Working & child tax credits beware.

Hmm all to do with arithmetic logic, * / take precedence over + & - , so it should be (£9,000 - £6,420) x 39% = £1,006.20.
What your calc's are doing is correct, but not what they mean  Roll eyes
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Working & child tax credits beware.

and whose fault is that in a court of Law Roll eyes Roll eyes
VileReynard
Seasoned Pro
Posts: 10,583
Thanks: 192
Fixes: 9
Registered: 01-09-2007

Re: Working & child tax credits beware.

OK - they left the parentheses out.