HMRC Historic Debt

Rob_Wood

I have received a Letter from a company called LCS who are telling me that I owe the HMRC £1619.18. I have found out that this is from an Over-payment of Working Tax Credits, dating back to 2005-2006. This is the first correspondence I have had regarding this Debt and was not aware of it existing. Is there a timescale to which the debt can or cannot be pursued???

marliepanda

They can't take you to court for it.

However, if you do indeed owe it, then they can recover it from any current tax credits you are receiving

Rob_Wood

I haven't received any credits since before 2010 when I split up from my partner, i'm now self employed.

Darksparkle

As mentioned, they cannot take you to court but can continue to pursue you until it is repaid.

It is highly likely that they will be able to prove that they sent you at least one other notification of this debt (whether you received it isn't relevant to them if they issued it).

They currently have the ability to adjust tax codes to recover debt so I doubt it will be long before they can recover it via your self assessment.