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Hi all,
Hope it's not wrong to post this on this thread here but does also relate to recovery of a tax credit o/p and I'd be interested in seeing what people think as HMR&C do seem to be trying to recover o/p's any way they can.
The client in this case is actually me! Sorry to say that despite working for an advice organisation and specialising in welfare benefits, I still can't make any sense of Tax Credits!! My husband and I were mistakenly paid WTC in 2004/05. It's a long story but we thought we'd resolved the issue. We were subsequently sent giro cheques for even more WTC we were still not entitled to and couldn't get anybody to take the money back, so we ended up stuffing them into a savings a/c so we could just pay them back when HMR&C worked out what had happened.
Anyway, last year we recieved a demand for o/paid WTC but for approx £500.00 more than we ever recieved. All the WTC that was initially paid to us was written off and we have the letter from the head of the TCO which confirms this decision, so it is clear that all that should then be outstanding is the total of the giros we were later sent. We are currently trying to get TCO to explain their calculations and have sent them copies of the letters they sent us which. Our last letter to them, which they have still not replied to, was sent on 7th September 2007.
So, silence from the Tax Credits Dept. Then yesterday I came home from work to find a msg on the machine asking me to call HMR&C on the given number no later than8pm on Thursday 3rd. When I was connected to an advisor I was immediately asked if I was ringing to set up a payment plan and I advised that I was simply returning a phone call. Anyway, initially the gentleman I spoke to was quite forthright and told me he was calling from the debt recovery team and I had to make a repayment plan by 8pm on 3/7/08 or legal action would be taken!! I informed I had no intention of paying an amount that was still in dispute - did not dispute an o/p of WTC but the amount was clearly incorrect. Advisor started by telling me I had to repay money I was not entilted to receive and was tried to talk over me when I explained my position. Anyway, without boring you with the details, after 30 mins of me being disgusted/appalled at being expected to repay money it had not been showed I owed/receiving no communication for months, having letters ignored and suddenly receiving phone calls that could be found intimidating by some people, including many of my clients, the advisor decided maybe there was an issue with the o/p and said he would send the case back to Tax Credits and I should contact them ( pointed out I had tried that!!).Advisor reported he was not part of the TCO but dealt with all debts owed to all depts. of HMR&C. He had no partcular understanding of TC's and simply worked on the debt info they gave him. He also told me he could not understand why our case file shows no contact with TC office since August 2006, although we have records of calls/have written since then.
Now, none of this surprises me but the more I think about it, the crosser I am. Tax Credits have yet to substantiate their claims that we owe them £X, but rather than having to prove this they can simply get the debt department to put the frighteners on and start demanding we repay it anyway!! I mean, I've done some debt advice work and dealt with some nasty creditors, but even they are supposed to operate within some kind of legal framework and prove debts/amounts are owing. I can't think of any other organisation that would be able to act this way, but given the might/scope of HMR&C then how many people (again thinking of some of my clients) would simply panic at this point and start paying??
It occured to me later that they specifically asked me to call and no mention was made of my husband even though it's a joint claim; husband reckons this was deliberate as HMR&C are targetting the female claimant and trying to use scare tactics to get a payment plan agreed. At the time I wasn't convinced but frankly, in the "we'll-do-as-we-like-because-it -appears-we-can" world of TC's then I'm starting to wonder. For what it's worth, when I told the advisor I had no intention of making a payment plan I asked him to specify exactly what sort of legal action would be taken so we knew what to expect. He said he didn't know as the case would be passed to the local office, so I'm still none the wiser!
Anyway, really sorry for rant and highjacking this thread but has anyone else come across this? I just can't get my head around how HMR&C just seem to operate without reference to any kind of guidelines, so at least we have a fighting chance of knowing what will happen and on what grounds/authority!!
Ps. Advisor also told me that HMR&C did not have the resources to provide statements/explanations of amounts to everyone who asked them, or, actually, anyone as far as I can tell!!
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