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  • #1

    HMRC attempting to recover overpaid tax credits

    Hi All

    I've just had a worrying letter through from HMRC trying to recover over £2800 in overpaid tax credits.

    I was in a relationship with a woman back in 2004 for about 18 months who had a child. I think at the time, we claimed working families tax credit. The relationship dissolved in 2006 but I'm guessing there was still some joint claim running? Anyway, I'm assuming HMRC have been unable to track her down and so I've been lumbered with a massive bill.

    Any ideas how I should deal with this? I've not had any contact with her since 2006 and the kid isn't mine. Additionally, this is the first contact I've had from HMRC - does the SB rule apply to a 'tax' debt?

    TIA
    Tags: act, action, bailiffs, benefits, bill, ccj, chasing, child, claim, collectors, con, court, credit, credits, debt, debts, dwp, dwps, earnings, fund, guidelines, hmrc, letter, loan, overpayments, reclaim, social, statute barred, tax, tax credit, working
  • #2
    Re: HMRC attempting to recover overpaid tax credits

    If it were me I'd ignore that letter....

    No. Benefits     never become SB unless you never need to claim again then they do if that makes sense

    If you ever reclaim a benefit they'll usually always get it back unless you never claim again.
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: HMRC attempting to recover overpaid tax credits

      What's the worst case scenario if I ignored the letter? Could they impose an attachment of earnings order on me? Bailiffs etc?

      Comment

      • #4
        Re: HMRC attempting to recover overpaid tax credits

        This may help.....

        Benefit/DWP overpayments:-

        - Can be statute barred. i.e. court action is barred once the limitation period expires.

        (Don't get mixed up about the meaning of a debt being statute barred. People often take it to mean more than it does.)

        - Usually the cause of action in DWP debts is when they issue the final notification of the overpayment, or in the cases of a social fund loan when repayment became due. So you have to be careful when working out when the 6 years started from.

        - Can be recovered via deduction from future benefit payments, even when statute barred. As this does not require court action.

        - DWP etc are not regulated by the OFT, so they do not have to take any notice of OFT guidelines on chasing statute barred debts.

        - Debt collectors chasing SB debts on DWPs behalf DO have to pay attention to the OFT guidelines. So if you tell the debt collector to naff off, their only real choice is to return the debt to DWP.

        - As said, in a lot of cases the debt being statute barred is somewhat irrelevant, as DWP are likely to claw it back at some point regardless.

        - BUT, if DWP are threatening court action the fact that the debt is SB is important. As obviously you don't want a CCJ on this. DWP will still be able to collect in the end, but if you can see them off in the sense of making them admit they can't take court action, then you can then sort it out at your leisure or over time.
        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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        • #5
          Re: HMRC attempting to recover overpaid tax credits

          Hmmm, so this is gonna stick with me then!

          I'm trying to chase down the other party to see if she's had any contact with them and to what extent if any she's dealt with it. I'm assuming she's jointly liable as she was the beneficiary of the monies and I think we were both working at the time.

          I'm also wondering, if I decided that ignoring it isn't a viable option, how would I go about asking HMRC for more information - a prove it letter if you will?

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          • #6
            Re: HMRC attempting to recover overpaid tax credits

            Originally posted by huskie View Post
            , how would I go about asking HMRC for more information - a prove it letter if you will?

            Here---> http://www.hmrc.gov.uk/taxcredits/th...ts/dispute.htm
            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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