Has anyone had any success getting recovery waived on grounds of mental health? I recently submitted letters from GPs for 2 clients with quite severe mental health problems and both have been rejected.

The first is an alcoholic with severe depression who was incapable at the time the overpayment arose and is still incapable of dealing with her own affairs. I have been asked to provide evidence from a specialist or mental health worker and may be able to do so.

The second is a lady who has a history of mental illness but at the time of the overpayment was dealing with her affairs OK and the overpayment is because of non-return of a declaration, which she disputes. She is NOW incapable of dealing with everyday life and this overpayment demand has affected her mental health. The reply on her case says that she would not have been prevented with dealing with her affairs at the time of the overpayment.

HMRC guidance on mental health says:

DMBM555620 – Tax Credits overpayments: Mental Health cases: Evidence required
The Disability and Discrimination Act 1995 defines a person with a disability as someone with a ‘physical or mental impairment which has a long-term adverse affect on his/her ability to carry out normal day to day activities’. This definition should be used when considering the effect of the mental health problem on the claimant’s ability to repay.

The evidence should include the nature of the illness and as far as possible, whether the illness is likely to be long-term (for example schizophrenia) or where the prospects for recovery are expected to be good (such as depression).

If the initial approach is a letter from the third party explaining the mental health problem, or includes such a letter from the claimant or third party, treat this as evidence obtained, see DMBM555630.

If the required evidence is not initially available, you should write to the claimant or third party asking for documentary evidence about the nature of the illness and its prognosis (likely outcome) from the claimant’s

community psychiatric nurse
general practitioner (Note: some GP’s charge a small fee for this service)
psychiatrist
mental health social worker
other healthcare professional.
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I read this as meaning that it is the impact on the claimant's mental health now that is relevant and not at the time the overpayment happened.

Any thoughts?

Hi,

I have had recent success in getting a tax credits overpayment waived on the basis of mental health problems. However it was necessary to take the case all the way to the adjudicators office. from what i remeber you need first to write to customer support in preston to dispute the overpayment, which, i think you migth have done. you are aiming to get a final decsion on the case and you can then progress to the adjudicators office, see their website www.adjudicatorsoffice.gov.uk/.

I do not know which year your tax credits overpayment relates to, but, remember that the new COP 26 issued by HMRC can be applied retrospectively to earlier overpayments. This was confirmed in the adjudicators annual report issued in 2008 and from mememory it is around the middle of the report where they have summarised their investiagtions.

Thanks for that, Tim. I was planning to try to get more specific medical evidence before proceeding to the Adjudicator. One of the cases is from 2004-5, the other 2008-9.

Regards
Anne