HMRC changed my tax code to claim back their overpaid Tax Credits

A question about : HMRC changed my tax code to claim back their overpaid Tax Credits

HMRC have written to me and my employer informing that they are changing my tax code as years ago, I was apparently overpaid Tax Credits by Ј1077.33. They have therefore adjusted my tax code and reduced my tax-free amount to enable them to collect 'their' over payment. Are they allowed to do this? It was not my fault that they overpaid me? Is there anything I can do? Has this happen to you? Dates

Best answers:

• Did they write to you at the time and inform you that you had an overpayment?
• This is why it is so important to dispute and appeal against hmrc when they hit you with an overpayment that you disagree with.
  They have a habit of haunting people many years later.
  Sorry dates I know this doesn't help you personally but its great you've highlighted it because it may raise awareness.
  How much are they taking off you? What are you losing per month via the new tax code? Is it leaving you in financial difficulty?
• The letter should have told you that you can refuse to have it coded out. However, you will have to offer up another form of payment and it will have to be an amount they accept.
  The time to dispute and appeal is when you are first informed of the overpayment.
  IQ
• I had an over payment down to their error. They wrote to me, admitting it was their error (even though when I was awarded the payment, I phoned them to double check and was told it was correct) and I still have to pay it back. Its worth asking your MP to help you with this - you will probably still have to pay it but at least he or she will speak to someone a bit higher up than the call centre staff and get the right information for you.
• No, they didnt admit to anything on the phone. I had been claiming tax credits and recieving Ј7 a fortnight. I then called them to advise that my husband had been awarded contribution based ESA. I then received a large sum into my account and an award notice stating that I was now eligible for Ј90 a week. I phoned them to double check and they said it was correct. so I used the Ј600 they has paid in to pay off an overdraft.
  I then recieved another award notice stating that I was NOT entitled to any tax crediits and would have to repay. None of the staff I spoke to could offer an explaination. My MP wrote to them and I got a letter saying that it was their fault because when I called to advise of hubbys ESA, they had entered it as Income related, They sent their apologies but are unable to write off the overpayment.
  I'm just glad I called them to double check, as I think this is why they looked into it. I wouldve racked up a huge over payment by now if I hadnt called them
• It gets so blooming complicated bubbles. I rarely get involved on the tax credit forums as its a minefield but I felt so sorry for Tracey. Especially as she has a letter stating it was not her fault.
  She gave them the correct details and they messed up! Doesn't seem fair. She trusted that she was entitled to it, because they told her so.
  She spent the money then got whacked.
  Such a common story nowadays.