Introduction
Have you received a request from HMRC to repay working or child tax credits? Don’t worry; you have the right to challenge this request. This guide will walk you through the steps to dispute an overpayment and understand your options. If you need assistance along the way, Contend’s highly trained AI legal experts are here to help you navigate your legal challenges. With Contend, you can access the easiest legal help in the UK and gain clarity on your rights.
If you’ve received a notice from HM Revenue and Customs (HMRC) asking you to repay an overpayment of working or child tax credits, don’t panic. You have the right to dispute this request. Here’s a straightforward guide on how to do it.
When Can You Dispute the Repayment?
You may be able to challenge HMRC’s decision if:
- You believe there was a mistake made by HMRC.
- You were unable to fulfill your reporting duties due to a valid reason, such as serious illness.
Additionally, if you were overpaid because you reported a change in your personal circumstances late, you can ask HMRC to adjust the repayment amount based on what you would have received had you reported the change on time.
If you believe you were never overpaid, you will need to contest HMRC’s decision first. For guidance on how to demonstrate your eligibility for tax credits, check out the section on challenging a tax credits decision.
Steps to Dispute the Overpayment
To let HMRC know that you disagree with their repayment request, the best approach is to fill out a dispute form available on GOV.UK. This form is designed to help you provide all necessary information without the hassle of mailing it.
If you need assistance with the form, consider trying Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems.
If you can’t fill out the form online, you can write a letter to HMRC explaining why you believe you shouldn’t have to pay back the overpayment. Be sure to include photocopies of any relevant evidence. Send your letter to the address mentioned in the letter you received about the overpayment. If you can’t find that letter, send it to:
HMRC Tax Credit Office
Preston
PR1 4AT
United Kingdom
Make sure to submit your dispute within three months from the date of the latest letter regarding the overpayment. If you miss this deadline due to valid reasons (like being hospitalized), HMRC may still accept your dispute.
If they refuse, you have the option to file a complaint.
Preparing Your Dispute
Before filling out the form or writing your letter, it’s wise to understand why HMRC believes you were overpaid. Their letter should explain their reasoning, but if it’s unclear, you can call the tax credits helpline for more details.
HMRC Tax Credits Helpline:
Phone: 0345 300 3900
If you have hearing difficulties, you can use Relay UK by dialing 18001 followed by the helpline number.
For international calls: +44 2890 538 192
Hours: Monday to Friday, 8 am to 6 pm
Make a note of the date and time of your call, as well as the name of the representative you spoke to. This information can be useful later.
If You Think HMRC Made a Mistake
HMRC has a responsibility to handle your claim correctly. If you believe they failed to do so, you can ask them to reduce the amount you owe. They should have:
- Paid you the right amount.
- Provided accurate advice based on the information you supplied.
- Correctly recorded your information and any changes you reported.
- Addressed any mistakes you notified them about.
- Confirmed your tax credit amount in writing within 30 days of any changes you reported.
When filling out your dispute form or writing your letter, clearly articulate how HMRC did not meet their responsibilities and how you fulfilled yours.
If You Were Late Reporting a Change in Relationship
If you were late in updating your claim due to a change in your relationship status, you might be able to reduce the amount you owe. This process is called “notional offsetting.” You’ll need to request HMRC to adjust your repayment based on what you should have received.
Contact the tax credits helpline and ask to be connected to the notional offsetting team, or write to them, including the dates of your claim changes and your reasons for the delay.
If You Can’t Afford to Repay
If repaying the overpayment is a financial burden, contact the tax credits helpline to discuss the possibility of repaying in smaller amounts over a longer period. You can also request a reduction or cancellation of the repayment, especially if you’re facing serious health issues.
While You Wait for HMRC’s Decision
Even if you believe you haven’t done anything wrong, you might still need to start repaying. If you end up being successful in your dispute, you will receive a refund. It’s advisable to pay in smaller installments rather than ignoring the repayment request.
If HMRC Stands by Their Decision
If HMRC does not change their decision, you can ask them to review it again, but you’ll need to provide new evidence. This request must be made within 30 days of their decision. If you have valid reasons for missing this deadline, explain them in your correspondence.
Send your new evidence and a letter outlining your request to the address provided in the HMRC letter regarding their decision.
Complaining About HMRC
If HMRC refuses to change your repayment after you provide new evidence, you can file a complaint. You can reach out to the office managing your dispute or use the GOV.UK complaint process.
Navigating tax credit overpayments can be daunting, but understanding your rights and the steps to take can make the process smoother. Don’t hesitate to seek help from Contend’s legal expert chat if you need further assistance. Contend is the Easiest Legal Help in the UK.
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