Tax credits overpayment from 2007!

peaty

Hi all,
I have just received a letter from Tax credits stating that there has been an overpayment on my account, that they have already informed me of this and if I dont pay - they will take me to court.
This is the first I have heard of an overpayment, so I have called them and they have informed me that the overpayment is from 2007 and all stems from me not returning the end of year declaration, which I believe I did.
My question is, can they still demand this money back 5 years later and also as the money they want back was back dated payments surely I was entitled to this money anyway?
Thanks in advance!

shedboy94

peaty wrote: »

Hi all,
I have just received a letter from Tax credits stating that there has been an overpayment on my account, that they have already informed me of this and if I dont pay - they will take me to court.
This is the first I have heard of an overpayment, so I have called them and they have informed me that the overpayment is from 2007 and all stems from me not returning the end of year declaration, which I believe I did.
My question is, can they still demand this money back 5 years later and also as the money they want back was back dated payments surely I was entitled to this money anyway?
Thanks in advance!

There is no time limit for recovering benefits.
If the claim was terminated due to the declaration not being completed, then a Statement of Account would have been issued at the time showing the termination and this would have shown the o/p.
Whether entitled or not, the entitlement only exists if the declaration is completed - it is part of the "terms and conditions" if you like.
You have the right to dispute the o/p if you feel you did complete it, or have a valid reason as to why you weren't physically able to complete it (incapacity etc)
Are you still claiming Tax Credits because if you are you would have had to call to reclaim after the termination, so should have been aware of it at the time. If you didn't reclaim, did you not call when your payments stopped?

DoctorB

I am in the same boat, overpayment from 2004, I can't believe they can give me a bill out of the blue 8 years on!

bikeman

DoctorB wrote: »

I am in the same boat, overpayment from 2004, I can't believe they can give me a bill out of the blue 8 years on!

That's the coalition for you. In opposition they were all talk, in power they keep the rich happy and target the poor with their austerity measures. see my post
https://forums.moneysavingexpert.com/discussion/3919537

shedboy94

bikeman wrote: »

That's the coalition for you. In opposition they were all talk, in power they keep the rich happy and target the poor with their austerity measures. see my post
https://forums.moneysavingexpert.com/discussion/3919537

Brilliant.........so HMRC have only started recovering o/p's since the Tories came to power........that is the biggest load of [EMAIL="!!!!"]!!!![/EMAIL] I have ever read in my life. In regards to the income disregard, I'm sorry but it should be almost impossible to get caught out by it - realistically, who would not know if their income has increased by £10000 (£25000 until this year). Generally there would only be an issue if you provide an est of inc that is lower than the previous year, then earn more than the lower estimate.

Paul_J

shedboy94 wrote: »

There is no time limit for recovering benefits.

Not quite true. Tax credit overpayments are not classed as tax and are therefore subject to the 6 year statute of limitations.
See HERE.

Morlock

Paul_J wrote: »

Not quite true. Tax credit overpayments are not classed as tax and are therefore subject to the 6 year statute of limitations.
See HERE.

They may be subject to the statute of limitations, meaning the debt cannot be pursued through a court, however, any debt can be recovered from current or future benefit payments.

Icequeen99

Paul_J wrote: »

Not quite true. Tax credit overpayments are not classed as tax and are therefore subject to the 6 year statute of limitations.
See HERE.

True, but it would be rare for it to apply to tax credits because in most cases there would be some form of ongoing recovery which seemingly extends the time limit.

IQ

whiffyleaks

bikeman wrote: »

That's the coalition for you. In opposition they were all talk, in power they keep the rich happy and target the poor with their austerity measures. see my post


What a stupid, comment. Overpayments are to be repaid. The last lot also retrieved overpayments, and rushed through the inadequate system. If you feel the need for a party political broadcast at least use facts and a little bit of intelligence.