overpayment of tax credits

[elle.b]

hi does anyone know how i stand legally when i have been overpaid by tax credits? I have just received a letter demanding i pay �2000 by 10th october or else they will begin recovery proccedings.They told me about it approx 18 months ago,i forgot all about it and this is the first i have heard of it since.Am I legally bound to pay it back?

[kempie]

Presumably "they" refers to HMRC. I believe that you had the right of appeal to the Revenue's decision on the amount of overpayment but this should have been made within 30 days of notification i.e. 17 months ago.

The Revenue have the power to make you repay a tax credit overpayment, no matter how it happened and no matter whose fault it was.

Further information and useful advice here...
http://advicenow.org.uk/go/feature/feature_394 .html?pkgid=39

[molly malone]

I was overpaid a few years ago, over �400 which I noticed almost immiediately and informed HMRC. I then tried to pay it back in a lump some and was informed they had no facility to accept payments! Anyway to cut a long story short I was allowed to keep the money as the mistake was theirs which they admitted. Don't think my situation is the same as yours elle, but hope this helps.

[Finance Guy]

Contact them, talk to them, do not ignore it or be scared of calling them. They will help you come to an instalment arrangement that will be manageable - they have to or you would have valid reason for complaint and appeal.

I did read recently about overpayments not being able to be recovered by the government, as the UK legal framework did not allow for it. I read that they actually had to pay back money to people who had been made to repay overpayments!

Hope this helps a bit!

Good luck