Tax credits: Readers' tales of woe

Another £2bn has been overpaid to hundreds of thousands of people who claimed child tax credits, this time in the 2004-05 tax year.

As in the system's first year, many of these people have now received demands to repay this money - which they claimed in good faith but then spent.

The government points out that many more claimants have been given accurate awards of cash.

But the sheer scale of the mistakes is astonishing, as these BBC readers make clear.

David Sherwood, London

David Sherwood has waited three years for tax credits

After more than three years of correspondence with the Inland Revenue, we still have not been paid our Child Tax Credits for the first year! The IR fail to respond to our letters within their own required timeframes, have failed to properly deal with correspondence, have failed to take the matter to Appeal when asked to and have so far failed (despite their claim) to provide the 'compromise' that they claim they offered.

Andrew Ripley, Ripon.

I am now being chased for a third time for an alleged overpayment. The first time was from the Newcastle office, the second time was from the Preston office (a sharp letter addressed to the person named as in charge of the case, saying that I'd be chasing him personally for a resolution, stopped this one), and now Cumbernauld. I will apply the same tactic. How many other people are being chased in this way I wonder?

Russell White, London.

Russell White feels stressed, angry and victimised

I am currently disputing a claim by the Revenue & Customs that I owe them £8,748, for the period 2003 to mid 2004. I recently received a 'final demand', my first communication from them in 8 months, threatening legal action. The letter stated that I could pay using the payslips on previous letters. I have never received these. I have gone 'to appeal' however I have no faith in the system.

Part of my problem stems from the fact that my income rose, however their system in 2004 sent me several 'statements' claiming I had overpaid, ranging from £19.00 to c. £5,000. The recent threat of legal action to recover such a large sum (which I am disputing) has left me stressed, angry and feeling victimised and it is down to me to prove (at considerable expense) that their claim is unwarranted and unfair.

Andrew Mumford, Ipswich.

Don't Labour realise they are tinkering with peoples lives and families?

My wife and I were overpaid tax credits in 03-04 and it caused us such financial hardship in 04-05 that we had to take out a personal loan. We eventually got the money back and compensation, even though we had to go to our MP and Parliamentary Ombudsman to get it.

I cannot believe this has happened again-what was wrong with the old WFTC/family credit system? Don't Labour realise they are tinkering with peoples lives and families?

Rachel Evans, Bath.

Rachel Evans feels constantly in debt

Ever since I began claiming CTC when my daughter was born, they have ended up overpaying me, and I feel like I am constantly in debt to them. I can never guarantee what money I have coming in, making financial planning near impossible.

For me, and I'm sure many others would agree, underpaying each month and then a lump sum payment at the end of the year for any money owed to us would be a lot simpler. At least then you can plan your finances better, and know you will not owe any money at the end of it all.

Naomi Greenwood, Richmond.

I just wonder about all those people out there who just accept these overpayments and suffer

My partner went self employed and I tried to sort this out with Tax Credits. I ended up getting a £1300 lump sum from them which was great, but I later found out that because of completely incorrect information and advice provided by Tax Credits my partner's income had been entered incorrectly and they requested the money back.

Working in the benefits sector myself I knew that my phone calls to Tax Credits would be recorded and that they would be able to listen to the information I was given and hear that it was incorrect. So, I appealed against my overpayment and because of this it was overwritten. But I just wonder about all those people out there who just accept these overpayments and suffer because of it instead of appealing.