Debt Company Collection and HMRC

[andyguttercat]

Hi all, I have been trying to resolve a Tax Credit repayment since early October 2015 a letter arrived out the blue from HMRC demanding payment of overpayment from 2004/2005. I contacted CAB and they told me to use one of the prewritten replies and send to HMRC within the 30 days they had sid I had, before they handed the debt on to a Collection company. HMRC then replied to the 1st letter and I replied with the second prewritten letter. Since then I have heard nothing until a Debt collection agency contacted demanding payment. I replied to them with a pre written letter telling them that HMRC were dealing with it and stop harassing me or I would contact the police. They then replied with this enclosed letter... Not quite sure how to reply now.. Any help would be appreciated Thank You.

[des8]

Re: Debt Company Collection and HMRC

I did reply on your other post as follows:

Is this an alleged tax credit overpayment?
Do you agree there was an overpayment?
If so do you agree the amount?
If not are you disputing the overpayment?
or appealing it to the tribunal?

Whilst it is being disputed they will continue collection activity.

[andyguttercat]

Re: Debt Company Collection and HMRC

Hi, Yes I am disputing the over payment with the HMRC.. The debt lie dormant from way back in 2007 when CAB were the last people in contact with HMRC..Cab closed the file as communication came to and end and nothing. Cab assumed that HMRC had given up chasing the debt. That was until September this year when a bill landed for the full amount of nearly £4000. I wrote to them within the 30 days they had given me to reply or pay. I used one of the sample letters from this website:http://www.taxcc.org/TCC_News/23/11/...r-6-years-old/ HMRC replied and I then followed through with the Step 2 letter which I've yet to have a reply to from HMRC. But since then I had a letter from the Debt company asking for payment. I sent them an Harassment letter and told them HMRC were still dealing with me. To which Debt people have replied with the above letter, in my previous post. I'm currently compiling a letter in reply to send back which will include my recent copies to HMRC and the CAB letter from 9 years ago. My argument is that I should not be expected to pay this after all these years of it being dormant, as it were.
I certainly don't have the money to pay it straight back either and nor am I in a position to get another loan or such to pay them as we have loans coming out of our ears currently and a mortgage to pay, plus a 12 year old in the household to look after.
Any help would be appreciated.

[des8]

Re: Debt Company Collection and HMRC

There seems to be some uncertainty on how overpayments can be collected.
THe statute of limitations prevents it being pursued through the courts.
However from April this year DWP can collect overpayments for HMRC through attachment of earnings or deductions from benefits.
However October 2015 edition of CoP 26 doesn't mention this.
There is no time limit on HMRC reclaiming overpayments
See this thread: http://www.legalbeagles.info/forums/...nt+of+earnings

The website you linked to: have you used their section "how to dispute an overpayment"?
Your dispute was not resolved and should therefore still be open.

[andyguttercat]

Re: Debt Company Collection and HMRC

I have decided to move onto step3 of that website and get a letter off to the Judicators office.
I have also put together w letter to send to LCS debt collectors, which will probably fall on deaf ears.
Letter to them as follows: Dear Sir /Madam,


Regarding HMRC's repeated recent demands for repayment and the recent payment demands from LCS, I am writing to inform you that I am in contact with HMRC.

HMRC have been previously informed that these alleged overpayments are subject to The Limitation Act 1980. Yet HMRC have continued to make repayment demands and failed to respond to questions as to the legality of pursuing a statute barred debt.
This letter is to confirm that I continue to resist responsibility for the alleged overpayments, and do not accept as appropriate their response to my invoking the Limitation Act 1980.

As such I am now refering the matter to the Adjudicators Office for comment and a decision regarding the appropriateness of HMRC actions.

As I have the right to refer complaints regarding HMRC actions to the Adjudicators Office, and because this is a matter of questioning the legality of HMRCs practice, any attempt by HMRC or LCS to pursue me for repayment whilst I do this will be considered harassment and dealt with accordingly.


Yours faithfully,

- - - Updated - - -

CAB were originally involved in the dispute back in 2007 and shut the case as all communication with HMRC dried up so it was assumed they had given up trying to get the payment back until I received the demand letter from them in September.
I got in touch with CAB again and they said to follow the path of letters as per the site link above.

[andyguttercat]

Re: Debt Company Collection and HMRC

Another update... A bit of good and bad... The bad 1st.. The Judicator's replied and said that they were unable to do anything until HMRC had replied and I had completed Step 2 of the process...
The good news is that the Debt company have sent a letter saying they are handing my dept back to HMRC to resolve and are no longer going to be chasing me.... So now I await the HMRC to respond...
I did find in the meantime a letter from HMRC from way back in 2007, admitting the overpayment mistake and an apology, but then in the next breathe saying I should of realised their mistake and was therefore liable to pay it back.
Oh well it's at least put a smile on my face that the debt company are ceasing the chase. Every time I came home from work I was expecting another demand letter.