tax credit pursuit despite vstatue barred letters

[Stellabh]

My daughter is still being pursued for alleged tax credit overpayments despite sending them the set of letter about alleged debt falling being Statue Barred. What should I do next. (because I told them I've never made a claim and it must have benmy ex, they are now asking for half of the original £600 demanded.

[MasterCoder]

Is this HMRC or a debt collection agency that's writing to you?

Statute Barred means they can't take you to court for it but there's nothing stopping them from asking you to pay still.

Unfortunately, if it's HMRC, they can still somehow find other ways to take money. I had an over payment from when I was looking after my father as his carer when he was terminally ill. £60. This was back in 2010. They recently sent me a letter saying that they were taking it directly out of my salary. And they did!

[Stellabh]

Is this HMRC or a debt collection agency that's writing to you?

Statute Barred means they can't take you to court for it but there's nothing stopping them from asking you to pay still.

Unfortunately, if it's HMRC, they can still somehow find other ways to take money. I had an over payment from when I was looking after my father as his carer when he was terminally ill. £60. This was back in 2010. They recently sent me a letter saying that they were taking it directly out of my salary. And they did!

My daughter is unemployed, receiving benefits and has mental illness... could they deduct it from her benefits?

[Stellabh]

My daughter is unemployed, receiving benefits and has mental illness... could they deduct it from her benefits?

It is HMRC writing. I have sent several letters on my daughter's behalf pointing out that alleged debt subject to Limitations Act 1980 but they refuse to be engaged on that topic and just keep writing again. Last one said theyd been trying to call her, they hadn't, and if she didnt phone them by 21st this month '''they will have to make a decision on the information they have''

[Amethyst]

They can do Direct Earnings Attachment. However you should still argue the limitations act applies.

You have never claimed tax credits ? Were you living with your ex at the time they claimed tax credits ?

( it's a household based benefit rather than an individual - always been far too complex and I'm still repaying a £3k overpayment myself because there's just no way to avoid it unless you just forfeit claiming or pay rises during the tax year - previous overpayments I've done by them reducing the award for the next year - but I never really knew where I stood with any of it - still don't to be fair - I'm paying the £3k off till Feb then I think they've come up with another £250 odd from a different year ughhh - irrelevant to you, just ranting now. )

How long ago was the overpayment ? Limitations runs from ( arguably ) the beginning of the next tax year ( so when they know there was an overpayment basically )

Probably need to knwo what you have written to them and what they have responded with ?

Have they detailed how the overpayment occured too ?

Debts that are not tax


In England and Wales only, the Limitation Act 1980 provides that recovery action for debts should commence within six years from the debt becoming payable. But Section 37(2) of the Act excludes proceedings for recovery of tax or duty and interest on tax or duty thus there is no time limit for those debts.

Other debts that are not tax, for example

• contract settlements
• tax credit overpayments
• Child benefit overpayments
• National Insurance Contributions
• Statutory payment recoveries (Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay)
• overpaid Child Trust Fund contributions
• Student Loan repayments and
• National Minimum Wage Act penalties

are subject to the Limitation Act, and action must be taken within six years “from the date on which the cause of action accrued”. In this context an action is the lodging of a complaint in the magistrates’ court, the issue of a county court claim form or the levying of distraint. In this same context the date on which the cause of action accrued is the original due date of the liability.

If an action is not taken within the time limit, it could be defended successfully on the grounds of limitation.

The date for limitation may be advanced by a number of means:

• payment made against the debt (where tax and NIC are being collected alongside each other, unless a debtor specifies otherwise, assume that any payment on account is made against both)
• acknowledgment of the debt - the acknowledgment must be both explicit and unequivocal
• where the debtor has concealed any material facts in relation to the debt which prevented the creditor pursuing the debt from the date it should have been paid.

[Amethyst]

It is HMRC writing. I have sent several letters on my daughter's behalf pointing out that alleged debt subject to Limitations Act 1980 but they refuse to be engaged on that topic and just keep writing again. Last one said theyd been trying to call her, they hadn't, and if she didnt phone them by 21st this month '''they will have to make a decision on the information they have''

They are terrible. They don't seem to worry about the uncertainty and stress they cause people.

If you have told them all her circumstances all you can do is wait for their decision.

Has she done a letter of authority for you to discuss with them on her behalf ? just seems odd if they are aware of her circumstances and health issues that they'd keep badgering her to phone them and not sorting out authoirty and evidence as to health issues.

Have a read through these parts of the internal guidance which might give you some ideas to help deal with this Debt and return pursuit: Tax Credits: mental health cases: contents

• DMBM555610
  Overview
• DMBM555620
  Evidence required
• DMBM555630
  Evidence obtained

This is the form for reference - http://malg.org.uk/wp-content/upload...-June-2017.pdf

[Stellabh]

ww.taxcc.org/TCC_News/23/11/2013/is-your-case-over-6-years-old/
Check out this very useful link for letters to HMRC re statute barred debt and appeal to adjudicator. I'be just got to appeal stage as HMRC keeps replying sidestepping main issue.