Old Tax Credits

JaniceB

We had Tax Credits for a short time in 2004. I wrote and told them in 2005 that we no longer qualified and did not need this anymore. I then got a letter to say we owed £1,300 fo the credits already paid. (They said I had not sent back my form, which I did) After much dispute, I no longer heard from them.
In May this year we had a demand for £730.00 regarding Tax Credits for 2004/2005. I asked them to put it on hold until I could get to the bottom of it. I then got a form to fill in and send back ASAP. They want to know our earnings for 2004/2005.
My question is:- Can they demand money from so far back and what should I do next?

no-oneknowsme

Hmrc can ask for any tax credits overpaid to be paid back at any time. There is no statute barred time limit in force with tax credits the way there may be with certain other debts...

The only thing you can do in your situation is ask HMRC to give you a detailed breakdown of WHY they claim this money is owed to them.You should also do as they ask and provide your income details from 2004/2005 , you will find this info on old P60's.

If it is then confirmed that you do indeed owe this money back you could ring the helpline and ask can you pay it back in installments. I believe they ask you about your current outgoings before they determine how much you should pay them back each week/month.