Tax Credits

[taxcredit]

Hi
I am being chased by HMRC for tax credits overpayment from 2003/4/5 for just under £5K. The first I knew about this overpayment was when I received their first demand in 2013. I have disputed this with HMRC stating that I didn't owe the money (I did not know at the time if I was being overpaid as I always gave them the relevant information as and when any changes occurred) I have also stated the Limitations Act. I have contacted the AO who said they couldn't help. I hadn't heard anything fro HMRC for nearly 2 years until this week I got a letter from Advantis saying if it don't pay my debt they will pass it to a DCA for recovery.
Should I keep fighting this - as in stating the Limitations Act or can Aventis pass this to Bailiffs?
Can I please have some advice as the last thread on this subject is 2015.
Thanks in advance! :-)

[Amethyst]

Re: Tax Credits

Contact HMRC and ask them to breakdown how you were overpaid and why. I'm currently repaying an overpayment that I was pretty certain was invented but managed to get someone to sit down with me ( on the phone) and go through all the figures and turned out right, annoyingly. Am currently repaying an affordable amount based on my income/expenditure monthly ( I didn't arrange that there and then, I went away and checked all figures then called them back a few days after)

[taxcredit]

Re: Tax Credits

So the Limitations Act does not apply to the HMRC even if I find that I had been overpaid?
I don't have any bank statements going back that far and have changed banks so how will I know for certain that I was overpaid.
Thanks!

[Amethyst]

Re: Tax Credits

Arguably it does, but you've been communicating with them throughout ? Actually though reading again it sounds like you didn't know anything about it from 2005 to 2013 ? so you could have passed limitations before you got in touch with them. You can just ignore the letters of course but I would be inclined to write at least to HMRC querying the amount, stating limitations again... and asking for a full breakdown of the overpayment. Sometimes they will leave it for a couple years then chuck it to a DCA who hassle for a while, then send it back to HMRC, so if you don't mind odd angry letters from Advatic, LCS etc you could just blank them. Mine was very recent ( 2015 ) so I had to just get it dealt with.

Thinking on it, I think there was a rather huge thread discussing tax credits and limitations on here a few months back ( maybe years lol ) - I'll see if I can dig it up as it might help you write to tell them to bog off.

https://www.gov.uk/hmrc-internal-man...ing/dmbm595080

Also to be aware of

Some creditors have the power to take further action to collect debts without needing to go to court, so they can still take money from you even after the debt is statute-barred. This mainly applies to DWP or local authority benefit overpayments or HMRC tax credit overpayments because these creditors can deduct money directly from your wages or benefits without going to court.

[Amethyst]

Re: Tax Credits

Found a letter which might help... will need amending of course, but it's a starting point.

Dear Sir/Madam

You have contacted me regarding the alleged overpayments, which you claim I owe.

I would point out that under the Limitation Act 1980 Section 5 "an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued".

HMRC's own manual states in the Limitations Act section (DMBM595080) "Tax credit overpayments ... are subject to the Limitations Act.... In this context an action is the lodging of a complaint in the magistrates' court, the issue of a county court claim or the levying of distraint... If an action is not taken within the time limit, it could be defended successfully on the grounds of limitation."

This alleged debt occurred over six years ago and no acknowledgement or payment has been made by me in that time. As such I suggest that you are no longer able to take any action against me to recover the alleged amount claimed.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

Please note that any alleged overpayment you consider I owe that are not covered by the appropriate period (i.e those within the last 6 years), I reserve my rights to continue to appeal / dispute. But as the total you are pursuing me for includes statute barred amounts I insist this is the first issue addressed.

I look forward to your reply.

Yours faithfully
(Your signature and name in print)

[taxcredit]

Re: Tax Credits

Thank you for your help! I know there are so many people out there that HMRC have messed up.
You are correct, I didn't know anything about overpayment until 2013 and fought it for two years stating the Limitations Act. But it has reared its ugly head again.
I will write to them again and ignore Advantis for the time being.

- - - Updated - - -

Oh that looks perfect!!
Thank you :-)

[lasttangoinparis]

Re: Tax Credits

I have just received a demand for an overpayment dating back to 2008-they have stated an amount at the beginning of 2009 as well although I don't think I was in receipt of this then. They have not approached me this-I was unaware I owed them any money until I received their letter today. They also asked for my tax returns since then although I haven't lived in the UK jurisdiction since 2009 and I informed them that I had left. Can they do this?