Mother denied tax credits - because HMRC says she's dead

A mother of two has been left stranded for months without the tax credits she's entitled to - because the taxman thinks she's dead.

Sharron Sheridan, 34, is a self-employed web developer from Stockport in Greater Manchester. She's been claiming tax credits to top up her income since setting up business on her own two and a half years ago.

However, when her partner moved in with her at the beginning of this year, Sharron was told she needed to make a new claim. For months no money was forthcoming, despite her claim being escalated three times.

It was only when she spotted a live chat option on the HMRC website that she discovered what was going on.

"I logged on to chat to someone to see if there was any news about my claim and was told by the operator that HMRC believed I was dead," Sharron tells the Sun.

HMRC has now promised to escalate the problem yet again, but Sharron says she's been told that it could take another two weeks for any money to come through, and that she and partner Katy are under intense pressure.

"We're in complete survival mode," she says. "We constantly feel under pressure – juggling our bill payments, going to the bank to put £2 in the account so there's enough to cover the direct debits."

Last year, management of tax credits was handed over to outsourced to US company Synnex-Concentrix last year. Since then, thousands of people have found their tax credits stopped unexpectedly.

Earlier this year, for example, Debbie Balandins was told that she'd lose her £140 a week because she was receiving money from 'new partner' Martin McColl - which in fact was the name of the newsagent that paid out her benefits.

If you find yourself in this situation, the most important thing is to get in touch with HMRC immediately, asking for what's called a 'mandatory reconsideration'.

There's a form allowing you to do this on the HMRC website, and more information from Citizens Advice here.

Meanwhile, Community Legal Advice and Taxaid both offer free advice, including on tax credits, for people on low incomes.