about disability rights uk advisers benefits coalition on charging contact da disability benefits consortium home links membership policy and campaigns search shop site map skill website support da tax credits what's new

HMRC want to know about appeal problems in tax credits

Request from Child Poverty Action Group (CPAG) for information

18 August 2010

This is a request for information about tax credit appeal problems. The Revenue (HMRC) is again going to discuss the issue of appeals at a special meeting of the consultative group on benefits and credits in the latter part of October.  CPAG have been asked to supply examples of the problems you have.

Evidence Revenue wants to see:

Ideally the Revenue would like to see examples of cases with names and sufficient information so that they can be identified and investigated.  This may take up too much of your time and if this is not possible CPAG will be willing to highlight problems you have which are outlined briefly. However it will be essential for CPAG to provide examples even if they are anonymised or the problem described briefly with a note of the number of problems (eg in the last year) and an indication that you, subject to your client’s agreement, would be willing to provide more detailed evidence.  Please indicate if the particular problem still exists even if you cannot provide examples and CPAG would welcome any other comments you have – see point 7 below.

When you reply please give:

• Name of agency
• Contact name of worker
• Contact telephone number (but not the advice line number)

Please aim to return by end of September or earlier. If CPAG don’t get the evidence for this meeting they will find it hard to get this on to the agenda again. If you are just overwhelmed with work but want to confirm there are problems, please reply by email confirming which issues are still problems by number below.

The main issues are listed below:

The issues about which some members originally wrote in about remain the same but please bear in mind the following:

1. The limited scope for tax credit appeals: from examination of rights of appeal law and discussions with the Revenue it is clear that many matters that are the regular subject of an appeal in social security cases do not extend to tax credits. Thus issues relating to whether there is good cause for delay eg for a late renewal of tax credits or whether a person has a good excuse for not having a national insurance number are not issues which can be appealed.  The Revenue’s decision is final.  This is a matter of some concern to CPAG. We need examples of cases where there was a disagreement between the Revenue and your client (or you as the adviser) as to whether good cause existed and what happened as a result. We are particularly concerned about issues relating to renewals and the fact that this process can lead to overpayments and termination of awards.
2. Couple/single status and valid claims for tax credits.  Notional entitlement has now been introduced with offsetting so for many claimants who have claimed in the wrong status (as a couple or a single person) there is now a route to obtaining tax credits without having to repay a technical overpayment. If you have cases not covered favourably by the guidance and where an appeal could or has helped again please do send in brief examples. For example there may be not only a dispute about whether or not the overpayment should be recovered but there could be a disagreement about the amount because it is unclear at which point the status of the single person/couple changed.
3. Delays processing the appeal.  In the past CPAG has heard that many claimants have had to wait many months or even up to a year before the case is referred to the tribunal service for an appeal hearing.  Is this still the case and can you send examples?
4. Settlements rather than appeal.  Advisers have reported that in some cases the Revenue seek to resolve appeals by the settlement procedure but a) the proposed settlement is not copied to the adviser so that only the claimant sometimes decides how to respond, and b) the settlement is an  unsatisfactory or even wrong outcome in a particular case.  Are these still issues for advisers and claimants?
5. Difficulty obtaining evidence in connection with appeal.  Is there a problem collecting records of phone calls to the Helpline, obtaining copies of award notices including the Renewal notice which plays back the circumstances of the previous year?  At training courses some advisers have complained that it is difficult to obtain essential documentation including the discs in connection with a number of processes including appeals. Is this still the case?
6. Failure of HMRC to implement an appeal decision.  CPAG did have a complaint that this had happened in one case. Is this a one off or has anyone else experienced this?
7. Any other issues, problems, comments? Please elaborate with an example if there are other problems.

Thank you for your help.

Beth Lakhani
Child Poverty Action Group

blakhani@cpag.org.uk

020 7812 5220

back