LCS Demand

Pajero

Hi
I have had a tax credit overpayment situation since around 2012. The debt was initially for over £6000. Not sure how that happenned but I was made redundant, unemployed for a while then returned to work. I recently became self employed and due to workload I failed to claim this years award.
I had no letters from HMRC until this week when a demand from LCS arrived for £2288

Can I put in a fresh claim for tax credits and thus allow them to continue clawing back the repayments as has been the case for the last few years? Or is there an alternative other than contacting LCS to arrange a payment plan?

What are my options here?
Thanx
Paj

Darksparkle

If your eligible then of course you can claim but it won’t guarantee they’ll use cross year recovery. They may still pursue payments directly or from next year do a direct earnings attachment.

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