Articles - Parents / Carers Zone

Tax credits are means tested allowances paid by HM Revenue and Customs (HMRC) to help people on low incomes.  But sometimes people are paid too much which can lead to problems.

Always check your tax credit award notice very carefully.  Make sure all the details, such as the number of children and your income, are right.  You have 30 days to challenge your entitlement if the information about your income or circumstances is wrong so report any mistakes immediately.

HMRC will try to get the money back if you have been overpaid and you could end up owing thousands of pounds.  However, they won’t automatically tell you about overpayments of send the forms to challenge it so you need to take action.

If you have been overpaid:

1. Contact the tax credit office.

Contact the tax credit office on 0845 300 3900.  Note the date and time you called, who you spoke to, what you said and what was said.  All phone calls to the tax credit office are recorded and, if necessary, you can ask for your recording.

1. Ask why.

Ask the tax credit office to explain when and why you were overpaid and how much you owe.  Ask for form TC647 which gives more detail than the award notice about how your payment was worked out.

1. Challenge it.

Ask for form TC846 (why you should not pay back an overpayment) and the code of practice on overpayments known as COP 26.  Use this form to ask HMRC not to recover the overpayment if they made a mistake and you couldn’t reasonably be expected to know that you were being overpaid. 

Give as much information as possible about why you should not repay the money.  This might include any changes in your circumstances which you told HMRC about but which they didn’t take into account.

Once the HMRC has received the TC846 they will stop taking money from you until the case is decided.

1. How will they recover the money?

If you’re still receiving tax credits, these will usually be reduced to recover the repayment.  If you’re no longer entitled to tax credits, you’ll be asked to repay all the money you owe within 30 days.  If you claimed as a couple, you’re both liable to repay the overpayment, even if you’ve separated by the time the demand for the repayment is made.

1. Ask for a full or partial write off

If paying back the money will cause you, or your family, hardship, you can ask for all or some of the overpayment not to be recovered.  Give as much information as possible to support your case, including financial details, family circumstances such as having children under five, illness, disability, bereavement, loss of employment or other debts.

1. Ask for additional payments

You can ask HMRC for hardship or top up payments.  They will pay you extra money but it will take you longer to repay the overpayment.

1. Offer to pay monthly

You can ask to pay monthly by contacting the payment helpline on 0845 302 1429.  You can also ask for more time to pay if deductions are being made from your existing tax credits payments.

1. Complaints procedure

If you have tried the above, but are still not satisfied, put a formal complaint in writing to the manager at the tax credit.  If you are unsatisfied with their response, you can complain to the independent adjudicator or the parliamentary ombudsman.

1. Avoid future overpayments

You must tell HMRC within one month if there are changes to your work, income or family circumstances.

For help and advice contact the Citizens Advice Bureau or the Council’s Advice Centre.

Take a journey through history…..

Did you know Charles Dickens gave one of his last public readings in Blackburn?  Or that Darwen was one the first Victorian towns to employ a female head librarian?

Four new heritage trails have been launched to show off the history of the two towns, through buildings and places of historical significance.  Council staff and members of the local community worked together for several months, researching the trails and mapping out routes through the towns, thanks to a grant from the local heritage initiative.

Pick up a leaflet at Blackburn visitor centre, Church Street, where the Blackburn trails begin, or Darwen library, Knott Street, where the Darwen trails start.  There are four   leaflets, with a town centre trail and a green trail for each town, and they are also available in other libraries.

Places of interest include the home of Blackburn’s richest man, the site of cottages known as Shivery Bottoms in Darwen and historic pubs, sculptures, tramway links, Blackburn Cathedral and the former chapel which John Wesley visited in Darwen.