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WTC & CTC overpayment appeal
Hi everyone,
I think I know the answer is going to be a no, but I just wanted to check;
Client had an over payment way back in 2017, she states she tried to appeal bu they ‘wouldn’t let her’ I explained the process, asked if she disputed and appealed in the 13 month time limit and she is saying that she did but that she forgot to include her rent details and they refused to take in any further. That doesn’t sound right at all and she is probably missing some vital information. She also doesn’t have any paperwork to show me either. She is still paying it back as it was £9k and wants to know if there is anything she can do. If what she is saying is correct and that they didn’t follow procedure then maybe things like a compliant, a subject access request for the information and help from her MO *may* work, but I am not confident at all. I think it may have just been too long. She was under a lot of strain at the time having been involved in an abusive relationship, so that is why things may have not been done in time but I do not know of any deadline extension after 13 months in these circumstances? Please correct me if I am wrong. I know I need to see the paperwork first to which may prove difficult given it’s been around the 6 year mark.
Has anyone else been in this situation and is there anything that we can do for her do you think?
Thank you for any help/advice in advance
Hi Rachel1
It sounds as if you have covered everything there, but there are a few possibilities that might help if you can work out what exactly happened:
1. She requested a review (mandatory reconsideration) of the entitlement decision that caused the overpayment at the time (usually on form WTC/AP) under s21A of the Tax Credits Act - if so, then HMRC ‘must’ review the decision and notify their conclusion. If they simply refused to take it any further then arguably it could be resurrected.
2. She was notified of the outcome of the review and then requested an appeal on form SSSC5 - then it would be with HM Courts and Tribunals Service to explain what happened, but may have been struck out if failed to co-operate or no reasonable prospect of success.
3. She did not request a review at the time, in which case it is too late for the entitlement decision to be revised now - even if it is wrong due to official error, it can only be revised within 5 years under Reg 3 of the Tax Credits (Official Error) Regulations.
4. She disputed recovery of the overpayment at the time (usually on form TC846, with reference to COP26) on the basis that she accepts she was overpaid but should not have to repay because she met her responsibilities and HMRC did not meet theirs - this is a matter of HMRC discretion - usually should be requested within three months but can be later in exceptional circumstances. If HMRC refused to take this further she could make a complaint.
5. She requested a reduction in recovery or waiver on hardship grounds - this might be where the amount she pays for rent could be relevant if they asked for her income and expenditure. She can start this process again but it is rare to be written off completely.
The size of the overpayment suggests it may have been a single/couple change or alleged undisclosed partner, and domestic abuse indicates she may have been an ‘innocent partner’ and being under a lot of strain suggests mental health issues could be relevant - it will be difficult to make these arguments now without a full explanation of how the overpayment arose, but there is some guidance that may help:
https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm555300
https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm555600
https://www.gov.uk/hmrc-internal-manuals/claimant-compliance-manual/ccm15755
https://www.gov.uk/hmrc-internal-manuals/claimant-compliance-manual/ccm8290
However, this would be asking HMRC to use its discretion to reduce or write-off the overpayment, and then making a complaint if it fails to do so, possibly taking it to Adjudicator’s Office.
Mark
Hi Rachel1
It sounds as if you have covered everything there, but there are a few possibilities that might help if you can work out what exactly happened:
1. She requested a review (mandatory reconsideration) of the entitlement decision that caused the overpayment at the time (usually on form WTC/AP) under s21A of the Tax Credits Act - if so, then HMRC ‘must’ review the decision and notify their conclusion. If they simply refused to take it any further then arguably it could be resurrected.
2. She was notified of the outcome of the review and then requested an appeal on form SSSC5 - then it would be with HM Courts and Tribunals Service to explain what happened, but may have been struck out if failed to co-operate or no reasonable prospect of success.
3. She did not request a review at the time, in which case it is too late for the entitlement decision to be revised now - even if it is wrong due to official error, it can only be revised within 5 years under Reg 3 of the Tax Credits (Official Error) Regulations.
4. She disputed recovery of the overpayment at the time (usually on form TC846, with reference to COP26) on the basis that she accepts she was overpaid but should not have to repay because she met her responsibilities and HMRC did not meet theirs - this is a matter of HMRC discretion - usually should be requested within three months but can be later in exceptional circumstances. If HMRC refused to take this further she could make a complaint.
5. She requested a reduction in recovery or waiver on hardship grounds - this might be where the amount she pays for rent could be relevant if they asked for her income and expenditure. She can start this process again but it is rare to be written off completely.
The size of the overpayment suggests it may have been a single/couple change or alleged undisclosed partner, and domestic abuse indicates she may have been an ‘innocent partner’ and being under a lot of strain suggests mental health issues could be relevant - it will be difficult to make these arguments now without a full explanation of how the overpayment arose, but there is some guidance that may help:
https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm555300
https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm555600
https://www.gov.uk/hmrc-internal-manuals/claimant-compliance-manual/ccm15755
https://www.gov.uk/hmrc-internal-manuals/claimant-compliance-manual/ccm8290However, this would be asking HMRC to use its discretion to reduce or write-off the overpayment, and then making a complaint if it fails to do so, possibly taking it to Adjudicator’s Office.
Mark
Thank you very much for this.