LCS chasing alleged tax credits overpayment

[Charlie08]

I am currently receiving letters from a company called LCS who are trying to collect an alleged tax credit over payment from 2006. I thought I had dealt with the issue at the time and believed that HMRC had 'dropped' the issue. This was backed up by the fact that I heard nothing from them until 2013. I replied to them again, explained the situation but they then, despite my protestations, began to deduct a percentage of the tax credits allowance from my (and my new partner's allowance). This was fine until this year when I started earning enough so as not to receive tax credits. When I reached this point I received the first letter from LCS.

The easiest route for me to take would be to tell them that the debt is statute barred, but I've heard that the government changed the law so as to make tax credits exempt from statute bar law. Can someone tell me if tax credit over payments are subject to the statute of limitations act?

Many thanks in advance.

[nemesis45]

Re: LCS chasing alleged tax credits overpayment

I am currently receiving letters from a company called LCS who are trying to collect an alleged tax credit over payment from 2006. I thought I had dealt with the issue at the time and believed that HMRC had 'dropped' the issue. This was backed up by the fact that I heard nothing from them until 2013. I replied to them again, explained the situation but they then, despite my protestations, began to deduct a percentage of the tax credits allowance from my (and my new partner's allowance). This was fine until this year when I started earning enough so as not to receive tax credits. When I reached this point I received the first letter from LCS.

The easiest route for me to take would be to tell them that the debt is statute barred, but I've heard that the government changed the law so as to make tax credits exempt from statute bar law. Can someone tell me if tax credit over payments are subject to the statute of limitations act?

Many thanks in advance.

Good afternoon,

A government debt may become " statute barred" but government departments such as HMRC have wider powers to pursue debts without any time limits and can for instance make attachment of earnings orders without recourse to a court.
LCS can only follow the HMRC's instructions.

Raise a formal complaint directly with the department and request that they full investigate the matter.

nem

[Charlie08]

Re: LCS chasing alleged tax credits overpayment

Thanks Nem. I'll get a letter off to them tomorrow.