Tax credit overpayment nightmare - please help

Hello

5 years ago I had a joint tax credit claim with my ex partner.

When it ended there was roughly a £360 overpayment, when we split.

I have paid my half, £180 and was told that was my debt paid, about 4 years ago. Recently I got another letter asking for £90.

I queried this and was assured, I had paid my half, this was just 'something that happened' (aka the remaining £180 my ex hadnt paid was halved again) but I was assured they could see I had paid me £180 and it was fine.

Now I have a debt recovery letter from DWP acting for HMRC asking for £90 and theyre saying it will go to debt collectors or DEA. When I called the HMRC girl said the debt is just halved and halved (so in a few years Id be asked for £45 if he didnt pay, then 22.50, then 11, then 5...) Surely this is not correct?!

I have raised a formal complaint as the next girl said this info was wrong and Id 'paid my half' but I am beside myself. Im saving for a house, putting in a mortgage app, I dont need this :( Ive created a payment plan in order to stop the debt recovery but what can I do? I know where my ex works, he will be using his NI number as its a 'proper' company. My fear is that theyre only doing a DEA for £90 on him too, and are making me pay 3/4 of the debt!

Please help. Am I correct in saying HMRC policy means Ive paid my half and that is me finished?
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Comments

  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Thank you Darksparkle. Thats so helpful. I think the first girl was maybe a bit confused she just said 'they try to recover as much as they can however they can and as Ive been contacting them theyve got my details.

    The girl who was taking the complaint details seemed slightly more confused by the occurance so hopefully it will get sorted.

    I rang thinking it was an old UC overpayment from Summer and its opened a whole can of worms.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    Thank you Darksparkle. Thats so helpful. I think the first girl was maybe a bit confused she just said 'they try to recover as much as they can however they can and as Ive been contacting them theyve got my details.

    The girl who was taking the complaint details seemed slightly more confused by the occurance so hopefully it will get sorted.

    I rang thinking it was an old UC overpayment from Summer and its opened a whole can of worms.

    It sounds like the mistake has occurred when you moved to UC. The debt would have been transferred from HMRC to DWP to recover from your UC and then when UC stops, DWP continue to recover the debt. DWP are only recovering what HMRC have told them to, so definitely worth pursuing HMRC.

    IQ
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Icequeen99 wrote: »
    It sounds like the mistake has occurred when you moved to UC. The debt would have been transferred from HMRC to DWP to recover from your UC and then when UC stops, DWP continue to recover the debt. DWP are only recovering what HMRC have told them to, so definitely worth pursuing HMRC.

    IQ

    I'm no longer on UC (was only recieving payment for a month but my claim closed after 6 months recently) would they still try to take from my UC when I've paid my half back?

    DWP just said it's been passed and had no info, so my 'complaint' is with HMRC and just waiting to hear back.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    I'm no longer on UC (was only recieving payment for a month but my claim closed after 6 months recently) would they still try to take from my UC when I've paid my half back?

    DWP just said it's been passed and had no info, so my 'complaint' is with HMRC and just waiting to hear back.

    Yes, when you moved from tax credits to UC, the debt will have passed but if you only had UC for a month it is possible that they just didn't get sorted quickly enough to recover it. Obviously the error is in HMRC calculating any debt as owed in the first place - DWP only collect the figure they are told by HMRC.

    Did you receive any paperwork from HMRC or DWP to say the debt had been passed to DWP? How long was it between claiming tax credits and UC?

    IQ
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.

    Yes, but not until 2018?

    http://revenuebenefits.org.uk/blog/minister-announces-dwp-to-recover-oustanding-tax-credits-debt

    Are you seeing it happen already?

    IQ
  • gbhxu
    gbhxu Posts: 327
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    HMRC are passing debts to DWP for recovery that don't have anything to do with UC also.

    What about Section 187 of the Social Security Administration Act 1992?
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    Icequeen99 wrote: »
    Yes, when you moved from tax credits to UC, the debt will have passed but if you only had UC for a month it is possible that they just didn't get sorted quickly enough to recover it. Obviously the error is in HMRC calculating any debt as owed in the first place - DWP only collect the figure they are told by HMRC.

    Did you receive any paperwork from HMRC or DWP to say the debt had been passed to DWP? How long was it between claiming tax credits and UC?

    IQ

    Hello IQ.

    My tax credit claim closed in 2012! UC was claimed in august 2016. I received about £120 but after that my wages from my part time second job were too high (I picked up more shifts after loss of first job, until I got new FT work)

    I got a letter today from DWP stating that I owe £90 and to contact them or they would contact debt collectors. That is the first I have heard about the debt since last year when I got a HMRC letter which I called about and was told I had paid 'my half' and that my account showed that and I didn't have to worry. Haven't heard anything about it passing to the DWP until the letter today.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    Icequeen99 wrote: »

    My mistake, I thought I read something saying it had started
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