Paying overpaid tax credits back - time limit?

marliepanda

To cut a long story short me and my partner split around 2 months ago. He will qualify for WTC on his own but I will not as I am currently too young.

I have just received an overpayment statement of £500 on our joint claim. I have called them about this and the man on the phone said I could pay 'my half' it back whenever I wanted, that no debt collectors will chase me for it, and it will not affect my credit. He also said it is not a joint and several 'debt' and that once I pay my half of 250 then thats it, I dont have anything to do with the other half.

Is this all correct? I am hoping to reach some conclusion with the ex as a good £160 of it went solely to him whilst he wasnt living with me, and I got no benefit from it, so happy to pay half of what I go but not half of his, but overall I will pay if I have to.

Just want to make sure its correct that it wont affect my credit and I have an 'indefinite' amount of time to pay it back?

themull1

Get that in writing.

Icequeen99

No, it is a joint and several liability debt in law. HMRC have adopted a policy that they will ask separated couples to pay 50% with a promise that if you pay your half they won't ask you for the rest.

The part about debt collectors is not true. If you receive a demand letter and ignore it then they will continue recovery action under their normal processes.

That said, they do have (unpublished) deminimis limits so it could be that your amount is too low for them to collect. I certainly wouldn't act on that.

If you get a letter, ring them and set up a payment plan.

IQ

marliepanda

I have every intention of paying it back, I wouldn't tale the risk on my credit for a small amount, just with moving home and changing jobs its a bit tight at the mo.

Its a bit dodgy that they are telling me one thing when they are going to do another, glad I double checked on here.

So if I pay up my £250, will they give me a number or a letter or something saying I am done with that debt?