Tax Credit problems

Quite a while ago there was a post on this site about the difficulties single parents were experiencing with the Tax Credit system. I responded at the time with details about my situation which was causing me great anxiety and concern.

Basically I had a tax credit demand requesting immediate re-payment of £2000 which Inland Rev. claimed had been incorrectly paid. They demanded I repay the full amount within two weeks and threatened draconian measures if I did not pay. My post detailed my frustrations at the unfair system and the worry that this was causing. I had tried absolutely every avenue that I could find, including the Ombudsman to try to solve the problem.

In the end I wrote to my local MP and set out everything that had happened, including logs of all my calls and the results of those calls. 

That was about 15 months ago. 

About two weeks ago I received an unreserved apology from the head of the tax credits advising that they had absolutely no right to claim the money back and they were totally in the wrong. They have even gone to the extent of compensating me £170 for phone calls and 'anxiety' caused. 

I'm writing this post for all those single parents that are currently experiencing the same problems. Do not give in. Keep fighting. If you know these people are demanding money that is not due, phone them, log all your calls with results and go through their organised system of complaint. Then go to the Ombudsman, then go to your local MP - that is what they are there for. Keep ALL the correspondence. Respond to their threatening letters and advice the people who write to you that you are going through the legitimate system of complaint, when they know this they will put your case on hold for six months - two weeks before I received my unreserved apology, I received a bailiffs letter threatening removal of goods from my house. When I phoned them, obviously not pleased, they replied that it was a standard, timed, computerised letter that is sent automatically. If I hadn't have phoned them however I would have had bailiffs at my door with the charges that go with them.

Do not let these people harrass and intimidate you. Single parents have enough stress trying to raise children without this additional intimidation.  

Don't give in!!!

Well Done!!!!!!!!

Thanks so much for putting this post up! I too was hit with an overpayment which I didn't think was fair, but I just went along with the system and paid it back little bit each month off my credits. It was only a couple of hundred pounds though.

Well Done Jason!

Take care

J x

I think it might have been your post that I originally replied to.

I think most people just go along with it thinking that because it's the Inland Revenue the repayment demand must be right. That's why I posted this.

The system is totally unjust and will steamroller you if you let it. Some of the threatening and intimidating letters I received were shocking. Had I not been totally convinced I was in the right I would know nothing of it now and be over £2000 out of pocket. As it was, whilst they were looking into my complaint I was withheld Tax Credits for 6/7 months. I never claimed this out of fear that as soon as I had the money and had spent it they would inevitable request it back. At the time I came perilously close to giving up the teacher training course I was on at the time in order to find full-time work to be able to pay back the demand. As a single dad with two young children, this was not the sort of pressure I needed.

I hope this helps anyone who is in the same situation.