HMRC have set debt collection agency onto me.

rockachick

Sorry if this is in the wrong section I am new to these forums but it's tax credits related so thought here was best place.
When me and the ex split up in 2011 we had previously been claiming tax credits jointly. There was quite a bit of money owed and HMRC told me I was only liable for half, so I set up a payment plan with them for my half. Final payment went out in November last year. I've today received a letter from past due credit solutions (no warning from HMRC first, they just went and did it)in my name saying HMRC have passed on a debt of over a grand to them. Presume this is for my exs half and they were never able to get it off him so are chasing me again for it? What should I do? HMRC said I am only legally liable for half as it was a joint claim at the time and that's why they allowed me to set up a payment plan for my half (which was finished been paid off 5 months ago!)
I really am at a loss what to do next
Any advice appreciated, thanks.

Poppie68

rockachick wrote: »

Sorry if this is in the wrong section I am new to these forums but it's tax credits related so thought here was best place.
When me and the ex split up in 2011 we had previously been claiming tax credits jointly. There was quite a bit of money owed and HMRC told me I was only liable for half, so I set up a payment plan with them for my half. Final payment went out in November last year. I've today received a letter from past due credit solutions in my name saying HMRC have passed on a debt of over a grand to them. Presume this is for my exs half and they were never able to get it off him so are chasing me again for it? What should I do? HMRC said I am only legally liable for half as it was a joint claim at the time and that's why they allowed me to set up a payment plan for my half (which was finished been paid off 5 months ago!)
I really am at a loss what to do next
Any advice appreciated, thanks.

It's a joint claim not half to you and half to him so you are both liable for all the debt. They will go after whoever is the easiest to get a repayment from.

rockachick

HMRC said I was only liable for half of it though, going to have a dig through my paperwork to see if I can find evidence of this.

NYM

I think, but don't hold me to it that you are only expected to repay 50%

I'll have a look for a link that may help to confirm it....

NYM

Section 28(4) of the Tax Credits Act 2002 (TCA) provides that for a joint claim, overpayments are recovered jointly and severally; both claimants are responsible for payment of the whole of the overpayment. However, a policy decision implemented on 5 September 2007 modified this joint and several rule so that joint claimants, where there had been a household breakdown (HHBD), could each repay 50% of an overpayment on a provisional basis, but remained liable for any amount unpaid by their ex-partner.

A further important modification to this policy, described below, was implemented on 21 September 2009 but does not affect the legal position as set out in the TCA.

Current policy
Each claimant in a HHBD case is now only required to repay 50% of an overpayment, even if their ex-partner does not pay their share.

For the time being, neither the Tax Credit system (NTC) nor IDMS is to be enhanced to cater for the policy change described above and therefore must be implemented clerically.



Tax Credit Office (TCO) action
The TCO issue an acknowledgement letter to each claimant where a change of circumstance involving a HHBD is reported in writing. The letter informs the claimants that each of them will only be responsible for 50% of any overpayment resulting from finalisation.

Where, however, the HHBD is first notified by telephone, the TCO only tell the claimant making the call about the new policy but do not confirm in writing.

NB: for the foreseeable future, the Finalisation Notice (FAN) and TC610 (Notice to Pay) will continue to indicate joint and several liability for the full overpayment.

Tax Credits Overpayments...

marliepanda

I hope this isn't a new thing as I paid off half of a joint tax credit debt and have no idea if my ex paid his...

micky2phones

rockachick wrote: »

HMRC said I was only liable for half of it though, going to have a dig through my paperwork to see if I can find evidence of this.

Hi, Poppie 68 is right, i was told the same as you.

Its just their way of getting the payment, you have shown that you can/have paid half so why not pay the other half.

I was also told its the person whos name is first on the claim again not true.

Hope you get it all sorted

konark

They're obviously struggling to get it off your ex, do you know his current circumstance, it's not easy to evade HMRC.

Ignore the past due people , they're just chancers who hope you'll pay if they threaten you. Contact HMRC directly to query the invoice.

atrixblue.-MFR-.

I would ignore the Debt Collection Agency, as far as I see it they are a third party interloper with no contract with you and merely hoping you'll pay up for a chunky commission for getting involved and a response to repayment. The legally have to tell you prior to passing onto a debt collection agency anyway, they haven't done this so you must tell HMRC they have used an unfair method in collecting outstanding monies.


HMRC is the best people to get hold of and discuss this with.


If your a vulnerable household they must follow rules an regulations and follow legislation.


failure to do so compromise their claim to a court for enforcement actions if you can prove they didn't follow the rules and the legislation.

NYM

Well it's fairly obvious that the Debt Collection agency wouldn't have a contract with the debtor, but they do have one with HMRC and that's the only one that matters.

iceage3

It's 50/50 ,why shouldn't she pay it ,can't u contact her and find out
What's wrong is sending to debt agency ,before contacting u ,but it's her halve .