What happens if you leave the country and owe tax credits overpayment?

lynnepit

I've been battling with HMRC for over a year now regarding errors they made that have led to a large overpayment supposedly to me of over £9k. It's completely wrong and my local MP is currently trying to get the problem rectified.

However, in the meantime, I have severe depression and can't continue to live where I am at the moment as it's contributing to my problems. I hate the area and people and really have to get away for my own sanity.

The problem is, if I sell my house and move to the Republic of Ireland, what will happen to the overpayment? The other option would be to rent my house out and rent somewhere in the South of Ireland for a while until I get sufficient time down there to keep a job and qualify to apply for a mortgage. In either of these instances, what happens to the overpayment? At the moment they've reduced my weekly amount to reclaim the overpayment. If I move to the Republic of Ireland, I wouldn't be working in Northern Ireland therefore wouldn't qualify for tax credits. Would they demand the money back immediately??????

Please help as I'm desperate to know where I stand.

john1002

Simple answer the overpayment will stay and the HMRC will use all tools to reclaim the amount, if you are currently appealing and with your MP involved I assume you are then the overpayment would be oin hold and as such all collection action will be on hold. If you and your MP fail to appeal then the the collection department will look at affordability to repay a set amount each month until it is repaid. In the global nature of things there are not many places you can hide these days that some debt collection company cant find you, this will not go away, good luck on the appeal and the move

john

lynnepit

Thanks John.

They didn't put the payment on hold. I initially appealled the decision myself and they did stop reclaiming money for a while but started again. There has been a whole pile of problems when I've rang them and they've promised to refer it and get back to me but haven't once done that so that's why I turned to my MP.

If I did move would they still demand the amount back at a similar weekly amount to what they're deducting now or would they demand a lump sum (there isn't a hope I could afford to do that)?

john1002

As long as you are not seeing a significant increase in disposable income while moving then they should still accept the current amount to discharge the debt, do i take it from this you dont think your new appeal with MP help will work?

Good luck

lynnepit

Unfortunately I'm holding out no hope at all from the HMRC and my MP as everything seems to be falling on deaf ears.

The Tax Credits MP helpline told my MP that they have it on record when I've rang in to tell them change of childcare provider in 2008 but instead of deleting the old carer and updating with the new details, they just added the new details. They say I should've checked the details but the problem is, and they will verify this as I've asked them to check their records and should have several phonecalls from me having to ask them about what my payments are as I didn't receive any confirmation in the post.

I don't hold much hope at all and my MP doesn't want to disclose how I suffer from depression and the stress of all of this has affected my mental health, until he has tried his approach first.

It's a living nightmare.

Thanks so much for your advice though.