Has anyone actually been taken to court by the Inland Revenue when they have mistakenly overpaid you?

Question

I know this is going to be open to abuse from all and sundry who don't agree in TC anyway but there we go!

The Inland Revenue are currently threatening court action against me and my ex husband to recover an overpayment which was caused due to their error.

I have supplied evidence showing why it would have been reasonable to think that the award was correct and they have also admitted that they made a mistake. According to their own code of practice they state that the overpayment would not be recoverable but they still instist that it is and are now apparently going to issue a summons if they do not receive payment.

Has anyone else been in a similar position and do they actually take people to court or is this a veiled threat and bullying tactics??

If court is going to be the way I have to go..does anyone know what sort of solicitor specialises in this area?

Answer 1

I wish....can't even get them to an appeal tribunal to challenge their behaviour

You should seek professional support from you local CAB in challenge this. The rules already exist to stop over payments made from offical errors from being recovered.

HMRC will not collect the overpayment while they consider whether you must pay it back. When you dispute recovery of an overpayment, HMRC will check whether they have met all their responsibilities towards you and whether you have met all your responsibilities towards them. They will then make a decision about whether the overpayment should be paid back. HMRC's responsibilities include:

• accurately recording any information you gave them when you made or renewed your claim

• accurately recording any information you gave them when you reported a change of circumstance and acting on it within 30 days of you reporting the change

• accurately calculating and paying you your correct entitlement

• including accurate information on your award notice

• giving you correct advice if you contacted them.

Your responsibilities include:

• giving HMRC accurate information when you claimed tax credits

• reporting any changes of circumstance in the timescales listed on the checklist which comes with your award notice

• reporting any errors on your award notice within one month of receiving it

• checking that your payments match the amounts on the award notice and reporting any errors.

If HMRC have met all of their responsibilities but you haven't met yours, you'll normally be asked to pay back all of the overpayment.

If you have met all of your responsibilities but HMRC haven't met theirs, you won’t be asked to pay back all of the overpayment.

If both you and HMRC have failed to meet some of your responsibilities, HMRC may write off parts of an overpayment, depending on the circumstances.

HMRC should send you their decision, along with the reasons for it, in writing.

It should be easy for a trained advisor to help get this sorted out, HMRC tend to back off when formally challenged. They can not recover during any appeal

Answer 2

This sounds daft but my understanding is that it's up to the tax payer to make sure the tax is right. Crazy as it may seem, but it's even our own responsibility to check that if we get figures off the tax man to make they're right.

If an employer made a wage payment error, they're too entitled to the overpayment back.

I'm sorry to pass on the bad news, it'll have to be repaid.

Answer 3

Hi, i have 2 bills from tax credits, one for £1,700ish and the other for around £3600!! they say its overpayment but if you take that amount of my annual amount it would leave me with hardly anything, so i'm not sure how they work it out. I'm actually going through an IVA though so both those debts will be paid off with that. good luck hope you get it sorted out.

Answer 4

I was overpaid by Tax Credits and made to pay it back. They threatened me with wage arrestment which I definately couldnt afford. It took me over a year to pay it off and Im glad to say Im well rid of them. Never heard of them taking anyone to Court, but who knows. Good luck.

Answer 5

wouldnt worry to much just now, in paper this week it said they were goign to write off 8 billion in overpayments, as they couldnt justify takining it back. Good luck.