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Thread: HMRC triyng to reclaim tax credits - 18 months after emigration...

  1. #1
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    Default HMRC triyng to reclaim tax credits - 18 months after emigration...

    This tale follows on from the earlier reclaim notice discussed here: http://www.enz.org/forum/showthread.php?t=32689

    Does anyone know much about HMRC trying to reclaim overpaid tax credits 18 months after emigration? They have already "reconsidered evidence" like the fact that they didn't update their records when advised of our move, and the amount has gone down by ~£400, but that still leaves ~£500 owed (according to them). They haven't actually given us a deadline for payment, but I'm tempted to appeal again...

    The reasons given in their letter are that "the award on which the overpayment arose has ended / the overpayment that arose from the date of the change until 30 days after you told us about the change." Does anyone understand this gobbledegook?

    I'm pretty sure we didn't get much in the way of tax credits in the first place, but need to dig out the original paperwork (naturally it's buried somewhere, but at least this came through before we have to move out for EQC repairs). If this works out to be more than 1/12 of what they calculated as our entitlement way back in 2010 (or would it have been 2009?), then I suspect they've decided we were entitled to WTC after reclaiming our tax... and if so I'll be very angry, because they should have included that in their calcs in the very beginning.

    Any thoughts from anyone who understands tax...?

  2. #2
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    Default

    Sophie, they tried to do this to us as well (though not quite so long as 18 months), after much rummaging around their site I came across something about their "responsibilities" as well as ours and I appealed based on the fact that they had failed their bit - I.E didn't update their records within the stated time. They sent tax credit cheques with no accompanying letter to our NZ address ( which we presumed were end of year balance payments as it was April so sent them to the Uk bank and happily withdrew them) and then tried to claim that they didn't have details of our permanent emigration so they were sent in error, but the only way they could have gotten the address was off of the form we sent to state that we were permanently emigrating, idiots! I sent an appeal letter stating all that and having a good old rant and they recinded. I hope that helps a bit, sorry I don't have better details but if you rummage you should find the bits needed on the siteabout their responsibilties regarding updating their records etc. It took long enough to just find a number I could call them on or an address - they send letters to international destinations with the 0845 contact number on it and nothing else, grrr.

  3. #3
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    Thumbs down

    Hi everyone, especially anyone who might be in this predicament,

    After a lengthy silence, HMRC have just sent us a letter advising that we still owe them a little under £500, which will be sold to a debt management agency if we don't cough up "soon". Admittedly the debt management agency would be UK based and I suspect they wouldn't be able to exercise much pressure on us way over here, but if we were to move back to the UK one day they would be waiting for us with a hefty slice of interest on top. Ho hum.

    Dispute forms did roughly halve the original amount requested, but I'm still frustrated. This is probably as far as they're willing to bend though, so it looks like we'll be shipping some $$$ over there soon. Yay. I can think of many better things to do with $1000!

    Arohanui ki a koutou,

    Sophie xx

    P.S. hi jandm! I see you're still dispensing invaluable advice and wisdom to the masses

  4. #4
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    Hi Sophie,

    We're still in the UK but have had all kinds of headaches with child tax credits. Nightmare!

    Once the credit agency get in touch try negotiating downwards with them as well. They will know that they have no chance of reclaiming the money without your cooperation so it is definitely worth a go. I'd make a low offer and see what they say. With no ability to take you to court I'd be surprised if they didn't agree. In fact, I wouldn't be surprised if hmrc can't find a debt agency to sell it to in the first place.

    Good luck!

  5. #5
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    Hello, Sophie - lovely to see you again. Yup, I'm still ticking over. We had our car club Christmas Dinner last year in that pub where I last met you lot, so I thought of you!

    In your place, as a first step, I'd send back to them and say all the same arguments as mentioned above by Nikki_d72, copying the letter in the form of a complaint to the appropriate address, and the head of department of whoever signed the one sent to you. Have a big noisy bluster. For instance, you could tell them you were never in agreement that you owed them anything at all, they had never demonstrated to your satisfaction that you did, and that it is preposterous that they should be threatening you with debt collectors after their long silence had left you under the impression that they agreed the first claim had been mistaken. That should give you time, while they sort out an answer, to decide if you think you actually MIGHT have had an overpayment.

    Then have a look at this. http://www.revenuebenefits.org.uk/ta...ing-with-debt/ It breaks down the procedure, so if you end up thinking, 'Oh, okay - I shouldn't have had £x after all,' you can see where in the process they are, and what you can say to set up a pay-off at a rate that isn't quite as much of a kick in the teeth as handing over £500 in a lump straight away.

  6. #6
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    Thank you both! Maybe there is hope then I'll have a bash at the keyboard and see what I can put together tonight.

    The last time I spoke to them, long ago so my memory may be faulty, they basically said that they'd paid out tax credits based on our 2009-2010 earnings, but since we left midway through 2010-2011 they gave us too much. Which is stupid, because they should be able to sort out one cohesive sum that we each either owed or were entitled to when we submitted the various forms about leaving the UK. GRR ARGH!


  7. #7
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    Of course it's stupid. Sock it to 'em!

  8. #8
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    Angry

    Quote Originally Posted by JandM View Post
    Of course it's stupid. Sock it to 'em!
    Stupid or not, they've gone and sold it to a debt agency. Yay. So much for crafting a decent dispute response and paying $38 for international postage and tracking!

    I read around and starting hoping that we could ignore and wait it out until it gets written off our credit history (usually 6 years, very manageable), then found the Debtline site which basically says a Crown debt never goes away. Quite depressing really. Not that we're planning to move back to the UK, but if we ever need to or change our minds for some reason, the debt would still be there. Debt collectors are also far less likely to pay any attention to our complaint too, and if I'm reading this right they also won't reduce how much they'll accept in payment when it's a Crown debt..

    Meh

  9. #9
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    Definitely meh.

  10. #10
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    You can still complain to HMRC, even if the debt has been passed over. I don't know if it will do much good - it's a horrendous department to have to deal with. The other option that you have is to make a very low offer to pay, so a nominal amount per month. It stops them being able to take you to court over it and it keeps it off your credit record, as far as I know. They must know that they have very little chance of recovering the money unless you cooperate.

    I hope you manage to sort something out and huge sympathies for the hassle. Our experience was awful too. I can't understand that if their own department haven't got a clue how it all works how we are supposed to!

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