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Opinion: End the tax credits nightmare

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22nd Jun 2005
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As a series of scathing reports on the tax credits system grabs the headlines, one disgruntled Chartered Tax Adviser and TaxZone reader shares her experience of dealing with the Tax Credits Office.

Personally I think the system should be scrapped. I have a number of clients being chased by the Tax Credits Office, claiming that they have been overpaid when in fact, once we actually drew up a schedule of payments due versus payments received, we found that this is not the case.

In one case alone we found not only that the clients had not been overpaid by over £3,000 as claimed by the TCO, but in fact they had been underpaid. We appealed weeks ago, and to date we have received no reply.

We wrote to the TCO in July 2004 in another case, followed by several telephone calls and a further letter. We are still waiting for an acknowledgement that our communications were received.

Take my own case as an example. My 2003/04 income went up substantially (including my partner's) due to passing my CTA exams and my partner's becoming fully qualified in his profession.

I told the TCO as soon as I realised that we were over the threshold and we would not even qualify for the child tax credit for 2003/04 and 2004/05. I paid back what I had received in 2003/04 before the end of the tax year.

They continued to pay CTC until June 2004 when I registered on line and gave them our income details.

Then they sent us several assessments claiming they had overpaid me in 2003/04 by over £1,100. How could they, when all I had was the basic CTC award all along.

When I checked the assessments more closely I discovered that they had added what I paid back to what they paid me, instead of deducting it!

All my efforts, appeals, telephone calls have been for nothing. I did receive a letter in January 2005 stating that they had made a mistake and that they would send me a revised award to put matters right in due course.

Well, five months down the line I am still waiting. I have tried to call the help line - that was a complete waste of time.

They say they can't deal with complaints and can't pass on information to and from departments. They suggested it is my fault that the original complaint has not been sorted out, because I have not told them I was withdrawing my claim.

I have told them over the phone, by internet and by letter that I have not been entitled to tax credits. How else am I supposed to tell them?

I am absolutely fed up with the whole thing and if I did not live so far away I would personally deliver my message to them of what I think of their systems.

I know how to check the award notices because I deal with them on a regular basis, but how the ordinary taxpayer is supposed to know if they have messed it up is beyond me.

A very frustrated taxpayer and tax adviser

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