Joint Tax Credits Overpayment - No Longer Together

hueygeorge

Hi All
I got a letter from HMRC today to say that I have an overpayment of £259 for last year. I split up with partner in April and now claim as a single parent. My question is though, will HMRC split the overpayment as it was a joint claim or will I be liable for all of it? They have more chance of winning the lottery than they do of getting money back from the ex, whereas I still get WTC/CTC from them. That's irrelevant though as I will contact them to arrange repayment - its not fair though that I pay the full amount back when he received the benefit of the extra money last year - is this one that will be chalked up to 'That's life?!!
Thanks all

pmlindyloo

Keep reading to the end because the news does get better!

I will post the link in case you need to question what happens and use the information to quote.



Couples and overpayment recovery
The law says that an overpayment debt for a couple can be collected by HMRC in full (but only once!) from either the claimant or their partner. The stated policy of HMRC where this has happened following a household breakdown is to write to both members of the former couple (making every effort to trace any former partner for whom they do not have an up-to-date address).
If the claimant believes that there should be a difference in what they and their former partner should pay, then HMRC will take into account the circumstances of both of them and may ask each of them to pay a different amount, or one of them to pay the full amount. Alternatively, they can agree between them to pay different amounts and inform HMRC of this decision.
Prior to August 2009, HMRC policy was to allow each party to repay 50% of the overpayment. However, when confirming this agreement in writing, HMRC reserved the right to return to the partner who was engaging with them for the other 50% if they could not trace the other partner.
LITRG, along with other representative bodies, expressed concern that HMRC often pursued the engaging partner with vigour whilst the other partner remained ‘untraceable’. This often meant the mother with care of the children had to repay the whole joint overpayment debt where the absent partner was difficult to trace. Since August 2009, HMRC have implemented a much fairer policy in these situations. As before, provided a person engages with HMRC, they will allow repayment of 50% of the joint debt. Provided that this 50% is paid (either by lump sum or on a payment plan) HMRC will not pursue that person for the remaining 50%. Instead they will pursue the other partner, and if they cannot collect the money will not go back to the engaging partner to collect it.
It is important to note that the law still allows HMRC to pursue either partner for the full amount of the joint debt. Also, this process is not well advertised by HMRC, so you should ensure that you ask Debt Management and Banking if you think it applies.

nannytone_2

in theory, you would owe half each but you are both solely and jointly liable for the overpayment.
they will either wait for him to receive benefits to claw it back ( if he refuses to pay) or could take the full amount from you

marliepanda

Legally you both owe the whole amount, 'jointly and severally liable' etc.

However, good news for you, HMRC will allow you to pay your 'half' and will not pursue you for the whole amount, just pay your bit, and keep a hold of the reference number.

I did this myself last year and I have no idea if the ex paid his bit or not, but they havent come back to me.

pmlindyloo

Here's the link for you:

http://www.revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/

andysterling

When the wife and I split up, she moved back to the states with our daughter, i told hmrc but they still over paid our tax credits.

They said i only had to pay back half and they'd get the other half from her (good luck with that, being abroad an all that).

I paid it off in small installments.:)

hueygeorge

Thanks all - my 50% has been paid and I have reference numbers etc. HMRC told me that they will chase the ex for his half and I am now not liable - yay!. Just to be on the safe side I gave them his current address and mobile number!!

viclspence

When I split with my partner in 2004 I had the same thing. We split our debt 50/50 but he made an arrangement with HMRC that he would take the money off me and repay the whole lot. They continued writing to both of us because, although he took the money, he never repaid to to HMRC. They have actually written it off now as he gave them some !!!! and bull story that it was their mistake and he had paid it, even though I know that he hadn't, but luckily they never asked me for it again!