Not that I am wanting to start a competition or anything but I'm sure there are people out there who can beat this...

Our client got notification of a WTC overpayment of around £1400 because ehr income ahs increased tot he point where she no longer qualifies. She has put ehr ahnds up on this one and accepts that she should repay it, but can't afford to repay at the rate asked for (no longer on tax credits, so they can't just help themselves).

So we did an incoem and expenditure account for her and worked out she could afford to pay £25 a month and wrote to HMRC on that basis.

That was 16 January. They replied, accepting the offer - on 31 July.

If they can't even get a move on when somebody WANTS to pay them, what hope is there for the rest of us?

We had a client who was overpaid in the first year of tax credits by £3,000 approx - client knew it was an overpayment and immediately tried to pay it back in a lump sum, only to be told they could not accept a lump sum and would take it back from on-going tax credits.

Client subsequently stopped work in 2005 and was no longer entitled to tax credits at all, the client had put the overpayment money into a high interest bank account and had not touched it.

We again contacted the tax credit office and asked that they arrange for the client to pay the amount back in full, we were told this still could not be done.

We contacted the local MP's office and eventually received details of where the cheque should be sent to - this happened.........last week!

So, from start of overpayment to finish it took 4 years for the tax credit office to "let" the client pay it back.

How many clients would have kept the money in the first place?

The tax credit system is still a shambles IMO!

Now don't forget that the bank interest will now appear on the HMRC database. It may have been paid less 20% tax deducted at source unless she had completed form R85 because she had no tax liability and the bank advised her accordingly.

If not she may have a tax repayment.

You may check out....but you can never leave.

(Hotel California?)