Have a client with a substantial overpayment of CTC for the year 2005/06 it seems that the client returned the annual declaration but HM Revenue & Customs initially stated it was incomplete and now that it was not returned at all. What is the correct procedure regarding s16, 17 and 19 forms that HM Revenue & Customs keep referring to? I am hopeless when it comes to tax credits

Secondly the client stopped making a single claim in December 2005 and made a couple claim as her partner moved in and this period i.e. December 2005 to end of March 2006 has been finalized but the overpayment refers to and includes that period too, which makes it doubly confusing.

Does anyone have any ideas of what to do or is it simply a case of putting the client’s as for example I know that there is no right of appeal against the recovery decision. But surely if we can show that the annual declaration was returned albeit incomplete that this means to not ask for correction or other by client that HM Revenue & Customs caused by official error?

I’m slightly worried as HM Revenue & Customs are now, it seems, in the process of taking action in the County Court.

Any ideas, please! Thanks in advance.

Sounds confusing, as most tax credit cases are unfortunately.

Was it the declaration that finalised 2004/2005 that was incomplete/not returned? (sent in summer 2005) or was it the declaration that would have finalised 2005/2006 (sent in summer 2006)

Also did the payments from the single claim actually stop in December 2005?

Victoria

It was the declaration that would have been sent in the summer of 2006 although it would seem that she would have been sent two as the year 2005.06 was spilt into two by the single then joint claim, and as posted earlier the second claim from 2005.06 has been finalised

Payments may not have stoped in December 2005, i have asked cl to check her bank statements in the meantime

Is all of this enough to ask the County Court to stay any action should HM Revenues and Customs go ahead?

On a couple of cases in the past I have spoken directly to the local office dealing with the recovery and agreed with them to hold any further action whilst we gather information about the case etc.. Maybe you could try this?

What I am slightly puzzled by is why the 2005/06 award was not finalised on information that HMRC held. That is my understanding of what should have happened under Section 17.

When someone fails to renew it is the run on payments that become an overpayment, not the previous year. Obviously in this case her single claim ended mid year but I cannot see why that would have made a difference.

If a claim runs a full year say 2005-2006, renewal papers are sent in July 2006. Run on payments would have continued from April - July 2006. If the declaration was not returned it would only be these provisional payments that would become overpaid, the 2005-2006 should be finalised on information held by HMRC.

I haven't had time to look at Section 17 in any detail, but off the top of my head I cannot see any reason why the same thing wouldn't apply here.

If you want to talk about this in any more detail feel free to email me victoriatodd28@yahoo.co.uk

Victoria

Victoria,

Thanks for this, i am due to meet with the client again today (PM) to check some details and make sure i have the facts right and need to do so ASAP as they seem to be on the way to issuing CC proceedings

I will have to point out that it would be premature as an application will be made to adjourn the proceedings pending the outcome of our objections...

thanks again and you may well have a long email soon.............

Not a problem, it would be good if you could persuade DMB to not file CC proceedings and allow you time to look at the case.

Victoria

One of my clients has told me that she has been told to repay all the CTC paid to her for 06/07 and all the run on she had up to Aug 07 because she did not complete the annual review. She is a single parent, also caring for her mum. Her life is chaotic and I suspect all official letters are ignored. Is this an incorrect (as well as immoral) decision? I have actually sent her elsewhere but helpful to know for future.

ASH - I have heard of cases where the helpline have told people that the overpayment resulting from a non renewal is the previous year + run on payments so it doesn't surprise me that your client was told that.

However Section 17 allows HMRC to finalise the previous year on information held leaving only the run on payments that they try to recover. (See the other thread which is an ongoing discussion on what powers HMRC are using to recover the run on payments).

If anyone has any cases where HMRC have in fact tried to recover the previous year + run on payments then please do contact us through our website www.litrg.org.uk or email me (see above) as we are interested in these cases.

Victoria