Tax Credits - overpayment advice please

*Rainbow*Warrior*

Please can someone advise me? I received a letter today saying there has been a Tax Credits overpayment of £1100, so I rang to set up a DD to make repayments. The advisor said the letter was issued before my last conversation with them (in August) and was actually out of date so to ignore it.

He says the estimated amount of overpayment is more like £250 but I don't need to do anything until next April when our income for this tax year is known.

Then he said there is another overpayment dating back to 2004, £550, and he called it a 'remission' debt. He said they would not inform me of this unless I were to phone up to make repayments but then they would have to advise me of it. He suggested I ring the helpline to ask for an explanation of where the debt came from.

I have a few questions about this and just want to get a bit more info before I ring them back. Firstly, can they demand repayment of a debt going back to 2004 (especially one they haven't mentioned before)?

As I recall this was when the new Tax Credits system was first introduced. We received a lump sum payment of around £800 and I phoned them to say it was wrong and offered to pay it back straight away. They wouldn't let me so I put the funds into premium bonds just so they were available if and when they asked for them back. In fact, all they did was reduce our payments to nil for (as I recall) a year or 2. So for this reason, I don't think I owe anything from that period anyway, as I think it's already been deducted.

Also, I had an overpayment about 4 years ago, which was my error. I set up a monthly repayment plan and paid that off. No-one mentioned the 2004 debt at that time (which conflicts with what the agent said today, ie that they would only mention it if I phoned up to make a repayment).

I know this is something I need to take up directly with them, but I would like to understand a bit more before I ring them. Can anyone offer advice about 'remission' debt etc? Thanks :-)

Darksparkle

Yes they can still pursue a 2004 debt.

It's highly likely that I was mentioned on at least one award notice, whether you received the award is another matter.

Not much else to say that he hasn't already said, there are overpayments that they remit for one reason or another, however the overpayment does actually still stand so if you were to call and offer to repay that overpayment then they would accept it but currently they are choosing not to ask you.

If you called to repay another debt from another year that's not the same as offering to repay the 2004 debt.

*Rainbow*Warrior*

Thanks but I'm still confused. So, what does the term 'remission debt'!mean?

The advisor said they would only mention it if I phoned to pay a debt (like today), so why didn't they mention it when I phoned to pay the other debt 4 years ago?

I still don't get how they can send out an award notice which says there is an overpayment and I owe x amount - but then claim there is another overpayment as well that they have never bothered to mention on the award notices? Why mention one debt but not another?

Darksparkle

*Rainbow*Warrior* wrote: »

Thanks but I'm still confused. So, what does the term 'remission debt'!mean?

The advisor said they would only mention it if I phoned to pay a debt (like today), so why didn't they mention it when I phoned to pay the other debt 4 years ago?

I still don't get how they can send out an award notice which says there is an overpayment and I owe x amount - but then claim there is another overpayment as well that they have never bothered to mention on the award notices? Why mention one debt but not another?

The definition of remission is the cancellation of a debt, charge or penalty.

As I said, if you called and offered to repay that overpayment they would accept payment. However if you don't then they won't pursue it. Usually because it's for a small amount and would cost them more to pursue it.

If the overpayment was for a previous claim it wouldn't show on current awards notice. It also wouldn't show if it has been remitted.

*Rainbow*Warrior*

Thanks - that's clearer now! Sorry to sound so dim!