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A Tax Credits claimant recounts how with TaxationWeb's help she fought and won a Tax Credits dispute with HM Revenue & Customs.

Alleged Tax Credits Overpayment

The first I knew of an overpayment claim was when a collection officer arrived at my door on the 10th June 2008 with a demand for an outstanding Tax Credit claim for £5,076.75. This I denied and called the helpline number, who advised me to to contact the tax credit office who, suprise surprise, were no help. 
 
A claim was then filed against me on 14th August 2008, and was received and processed on the 18th August 2008, and then passed to Guildford Court on the 2nd September. 

Pre-Trial Review

I then completed a Money Claim Online form denying any overpayment and at this point I submitted a full defence. HM Revenue & Customs (HMRC) responded to my defence with a standard letter addressed to the wrong people!!! This letter included the usual demand for the full amount and the repercussions if it were not to be received. Following this, I appeared at Guildford County Court on the 16th December 2008 for a pre-trial review. At the pre-trial review, I was able to explain my defence and listen to HMRC stating that they were relying on a Certificate under Section 25a of the Commissioners for Revenue & Customs Act 2005. They could not produce this Certificate on this date and the case was adjourned until the 25th February 2009. After this hearing, I received a further letter from HMRC answering points that I raised at the hearing. Unfortunately, I recieved this on the 18th of February, and the only information on it was a list of my addresses, that I already knew! we returned to court for trial.
 
On hearing both myself and the the representative from HMRC, a court order was raised asking me to resubmit a full defence and for HMRC to accept an appeal for the missing returns to be considered in retrospect. The case was adjourned until the 28th April.
 
I filed a full defence to HMRC however they ignored all requests for claims to be filled retrospectively and we proceded to court again.

Court Again...

At the court hearing on the 28th April the Judge questioned HMRC over the validity of a Certificate under Section 25a in Tax Credit cases and again adjourned the case. The Court then produced an Order stating that the HMRC had to file a full written reply to my defence and also provide the certificate that they would be relying on by the 12th May. HMRC was also ordered to complete a trial bundle by the 26th of May and send to both the court and myself. I in turn had to produce my own trial bundle by the 9th June. This I did. Unfortunately, HMRC did not produce either item.  

...and Again! (But a Good Result)

I again attended court on the 17th June 2009. The Judge reviewed my trial bundle before calling all parties to the hearing room. At this point, it was discovered that no representative had appeared for HMRC and the Judge therefore, due to lack of evidence, trial bundle and representation STRUCK OUT the claim.
 
This whole process took just under a year and was completed by myself with only the support of my partner. It was whilst we were putting together my trial bundle that I researched on the web the question of validity that the Judge had raised, and this is when I discovered your website, which explained clearly the different position of Tax Credit Debt and how CPR PD7D does not apply. Having this explained to me gave me the impetus to see the court process through to the end. 

Conclusion

I feel it is vital to share my case with others in this situation as there is know way of knowing how many people, when faced with demands and threats of bad credit scoring etc., etc., become frightened and pay without questioning the validity of their cases.

Sharon France

Comment from John Andrew, Chairman of the Low Incomes Tax Reform Group:

“I am extremely pleased that Sharon was able to use the LITRG information posted on TaxationWeb. Those who want to understand more about the Court Rules referred to by Sharon can go here: Tax Credit Overpayments and the County Court “