Client has a transitional income support claim for her child. This month she became responsible for another child.

My client made a claim for tax credits. A few days later, following my advice, and before the claim was decided, she called to withdraw the claim and confirmed that call in writing. Both times, she gave the appropriate legal reference.

As expected however, she has been paid CTC. The TCO has told her in a letter that they can't withdraw the claim until the end of the tax year. This is wrong of course - it should have been withdrawn immediately.

Does anyone have any thoughts as to the tactics we can use to defend overpayment recovery? We can clearly show that the client has not failed in her responsibilities, and that, in not withdrawing the claim, the TCO has failed in thiers. Will that be sufficient?

Thanks,

What has she done with the money? According to your story, she knows she's not entitled to it so ought to put it in a suspense account. If you keep/use money which you know has been paid to you wrongly you are in a very dodgy position - not like someone who has been assured it's all right and acts in reliance on the assurance.

Thanks Ariadne. I've already advised the client accordingly in this respect. Any thoughts on the initial question?

Tony - would you mind putting the legal reference on here for the withdrawal? Could save me some time

Thank you

Nicky

Hi Nicky,

It's reg 5(7) TC (claims and notifications) regs. Page 477, vol 4, of the Social Security legislation volumes.

Tony

You're a star - thank you!