HMRC underpaid tax credits for past 4 years

[Cherie]

To families with a disabled child, they will only refund one years underpayment :idc: I heard this on the news but can't find a link :suspect:

[Cherie]

Thousands of low income families with a disabled child were paid up to £4,400 too little in tax credits after data was not shared between authorities.
Some 28,000 families received at least £3,000 too little from 2011-2014 after the Department for Work and Pensions failed to inform the HMRC they were eligible for the extra money.
HMRC said it would repay the money owed for 2016-17 but not for earlier years.
It said it was up to individuals to check they received the right payments.
Q&A: Tax credits explained
The families who missed out on payments were those with a disabled child who qualified for Disability Living Allowance and who also receive tax credits - a means-tested top-up for low income households.
They should get an extra £3,100 a year or £4,400 a year depending on the severity of the child's disability.
But about one in 12 families did not receive the payment after the information was not shared between the DWP and HMRC, an audit found.
The DWP is responsible for disability benefits, while the HMRC pays out tax credits.
Paying back the families the money they lost this year will cost the government £95m.
HMRC told BBC Radio 4's Money Box that it would repay the money from 2016-17 and ensure it was paid in future years but it would not pay the money for previous years.
It said it was up to individuals to claim the right amount and, when it is awarded, check it is correct.
Money Box is broadcast on BBC Radio 4 at 12:00 GMT

[jaxie]

http://www.bbc.co.uk/news/uk-38113279

They should be paid the full amount owed.

[Cherie]

Thanks Jaxie I found it it in the end, I wonder if this technique would work with underpaid tax, it's your job Mr Taxman to check the figures I'm not paying :hee:

[jaxie]

Thanks Jaxie I found it it in the end, I wonder if this technique would work with underpaid tax, it's your job Mr Taxman to check the figures I'm not paying :hee:

I think the problem is that some people don't understand what they are entitled to or the information is there but complicated.

[arista]

To families with a disabled child, they will only refund one years underpayment :idc: I heard this on the news but can't find a link :suspect:


Yes Cherie
it will be Debated then Corrected, soon.

[joeysteele]

Absolute disgrace.

[Cherie]

I think the problem is that some people don't understand what they are entitled to or the information is there but complicated.

Agreed every year after the budget I get a letter to say child benefit is increasing by 30p, and the waste really irks me but why can't they do that with other benefits? They have a register of families with disabled children, use it...

[Cherie]

Absolute disgrace.

I hope someone challenges this and they have to back pay

[user104658]

Technically its up to the claimant to declare the disability on their original form, or to notify of a change of circumstances if the entitlement changes after they are already in receipt, however...

I think the problem is that some people don't understand what they are entitled to or the information is there but complicated.

As I've said in other threads, this is very much the case. It's all very well to say that claimants should " check that the payments are correct" but it's not made easy (in my opinion, deliberately) for a layperson to understand what they should and shouldn't be getting in tax credits - or how to claim it.

"Universal Credit" was supposed to simplify a lot of this process but so far it's been nothing but a farce and an absolutely horrendous waste of resources.

[Northern Monkey]

I bet if they'd been over paid HMRC would've been quick as feck to take it all back.

[Cherie]

9074074]Technically its up to the claimant to declare the disability on their original form, or to notify of a change of circumstances if the entitlement changes after they are already in receipt, however... [/B]



As I've said in other threads, this is very much the case. It's all very well to say that claimants should " check that the payments are correct" but it's not made easy (in my opinion, deliberately) for a layperson to understand what they should and shouldn't be getting in tax credits - or how to claim it.

"Universal Credit" was supposed to simplify a lot of this process but so far it's been nothing but a farce and an absolutely horrendous waste of resources.


This wasn't the case here, the DWP had the correct information, they failed to pass it on to HMRC, so how they can twist that to be the claimants fault is inexplicable

[kirklancaster]

It's the same with most 'Official' and 'Quasi Official' Organisations - if they underclaim from you, then they can go back to the year dot to reclaim what you underpaid, but you can only go back so far when they have underpaid or scammed you. It is a fecking DISGRACE.

[user104658]

This wasn't the case here, the DWP had the correct information, they failed to pass it on to HMRC, so how they can twist that to be the claimants fault is inexplicable
The various organisations don't communicate well between each other; the same goes for housing allowance, they go by the information given / "proof" provided by the claimant. It's part of why Universal Credit was conceived, to unify all or most benefits under one claim rather than 3 or 4 separate claims, which is a mess. But Universal Credit is... Also a mess. :shrug: