Another Working Tax Credits Overpayment Question

[ETFarce]

I received a letter in Nov 2017 stating I had been overpaid for the tax credit year 2011-12.

In June 2011 my tax credit was recalculated after I updated my income (I know this as I recently did a SAR and was supplied all the information). At the time I knew I the payments had stopped because the money stopped going into my account so I assumed my claim had been stopped as I was earning too much. I wasnt concerned as i expected it to be reduced to very little anyway so didnt waste my time chasing a few pence by querying it. I was never informed at the time of any overpayment and never received an updated working tax credit award. At the end of 2011 i moved house. I have previously updated my address with them when I have been in receipt of tax credit but as I was no longer receiving it anymore I didnt update my address this time. I never heard from them again until Nov 2017 when I made a new claim and they told me of the overpayment.

When is the 'Due Date' for a tax credit overpayment to be paid back? Is when they recalculate and discover an overpayment has occurred, is it months later at the end of the tax credit year, or is it years later when they send you a letter informing you of the overpayment for a previous year?

Thanks

[des8]

Assuming you are not disputing the overpayment, have HMRC said if they are looking for direct repayment, or if they are recovering from "ongoing" claim.

An overview of the Direct payment guidelines:

Notification of overpayment – TC610	When a claim ends, for whatever reason, and any overpayment is outstanding, the tax credit system will issue a TC610 notice to pay form once any appeal period has passed (normally 30 days). The TC610 (see GOV.UK for an example) advises the claimant that the amount is owed to HMRC and normally gives 42 days to pay. It advises claimants that overpayments can be spread over a longer period. It encourages claimants to contact the payment helpline on 0345 302 1429. The payment helpline is part of the contact centre directorate in HMRC.
Debt passed to Debt Management and Banking (DM)	If no response is received to the TC610, the debt will be passed from the Tax Credit Office system to Debt Management ‘s IDMS system. (A debt will transfer to IDMS 42 days after the TC610 or sooner if the claimant engages and agrees a payment plan).
DM checks.	DM will check whether the debt can be passed to one of the private debt collection agencies (DCA) that HMRC uses. If the case has a domestic violence marker, or a claimant or partner has died recently, or there is an outstanding appeal the case will remain with DM otherwise it will be passed to the DCA.
Debt Collect Agency recovery process	The DCA will attempt to contact the claimant to arrange payment. The claimant will need to speak to the DCA directly – they will arrange a time to pay and consider hardship requests (which are then referred back to HMRC – see below)
Case passed back to HMRC	Eventually, after at least 12 months, if there has been no contact with the claimant the debt will be passed back to HMRC. The case will be reviewed by a HMRC debt officer and they will attempt to contact the claimant to arrange recovery.
Legal proceedings	If no contact can be made, or the claimant refuses to make a payment arrangement, HMRC may consider using one of their enforcement powers such as taking control of goods (distraint) or county court action to recovery the debt.

If you want extra time to pay they should allow 12 monthly instalments without question, but if you provide an I&E you can have upto 10 years

[ETFarce]

I was under the impression theres a 6 year limitation on collecting debts which is why i wanted to know at what point a debt is due. If its when they reassessed me then its over 6 years, if its on the yearly renewal then its under 6 years.

[des8]

Tax credit overpayments are subject to the Limitation Act, and action must be taken within six years “from the date on which the cause of action accrued”
That date can be moved forward if you for example acknowledge the debt (so take care)
(https://www.gov.uk/hmrc-internal-man...ing/dmbm595080)
However that just means if they pursue the matter through the courts you have a defence.
The debt however still exists and they can pursue it through other means, usually by deductions from on going claims or PAYE

[ETFarce]

Thank you for your replies. After careful consideration Ive arranged to pay it back. Ive already got a few ongoing fights and for the amount they were asking me to repay it wasnt worth the stress of staring another fight especially one with HMRC.

[valeriej43]

Can i ask if they allowed you to pay over time and how long have they given you?
I have posted something similiar but got no replies as yet
They are taking £47 a month off hs Universal credit which is only £73 a week,
He shouldnt have to pay this back as he was only overpaid by 1 month but because its a month over they want the whole year back
He could obviously only cancel when he stopped needing it when his son left,
Another letter did come but he was in rehab so didnt even see the letter,so didnt ignore it on purposeTax credits say its up to UC to stop taking so much and UC says its up to tax credits to sort it ou#
Thanks in advance

[des8]

valeriej43 have responded on your thread,