How to Dispute a Tax Credit Overpayment: Step 4

Step 4: The Adjudicator's Office (AO)

The Adjudicator's Office will investigate specific cases and come to a decision. In certain circumstances this decision can also be challenged. When the AO first receives your complaint / dispute they will first of all acknowledge it, then eventually follow it up by letting you know they have written to HMRC to ask for their version of events and saying when they expect to hear from HMRC.

HMRC will eventually respond by producing a report that outlines how they feel the overpayment occurred, and why they feel it is your fault. If your MP is handling this stage for you (highly recommended) then they will more than likely ask for your comments on the AO’s report. Use your case history and data to help remind you of events and write a response that highlights each point you disagree with, and any relevant information or context such as family emergencies, ill health etc. that was happening at the time of any events / dates mentioned.

Remember to keep your points relevant. The Adjudicator's remit is to look into issues on the following points; Mistakes, Unreasonable delays, Poor or misleading advice, inappropriate staff behaviour. So discuss only what HMRC have discussed, and anything relevant they are attempting to brush over (i.e. misadvised, failure to act on information provided, etc).

The AO may give you a ridiculously short deadline in which to respond to the report. Something like 10 days to go through a 10 page document and write a response. Given that by this time this stage has usually taken at least 3 months, this is even more unfair. Do not be bullied into rushing your response. If you cannot make the deadline use the AO Deadline complaint letter to complain that you have not been given enough time and to issue your own, more reasonable deadline.

If HMRC hassle you for repayment or affect your current tax credit payments, complain, using our "Dispute Status" complaint letter; state that you are still in Dispute and as per their own Code of Practice (COP26) they should not be seeking to recover until this process has been exhausted.

Again it is common to receive a partial success at this stage. The AO may decide that HMRC are responsible for one or more portions of the overpayment and rule that this portion be written off. Or HMRC may even admit to it in their report now that they have a watchdog looking at their actions. This is good and typical of most overpayment disputes, as they are won bit by bit, one round at a time.

This stage is only over if and when the Adjudication Officer writes to inform you they have “decided not to uphold (all of) your complaint”. Before moving on to the next stage respond back to the AO complaining if any issues have been left unaddressed / acknowledged or you feel the decision is unreasonable. (See our Failed Dispute response template).

If justice still hasn't been done, it's time to move on to the Parliamentary Ombudsman in Dispute Step 5.