Final Demand off LCS for Single Tax Credits

salpal73

Sorry if posting on the wrong place, new to this, I keep getting a letter from LCS for £39.12 owed to HM Revenue and Customs in relation to Single Tax Credits.
I have not claimed single tax credits for about 8-10 years, the letter is now saying that unless I pay HMRC may seize goods, or County Court.
Where do I stand on this? Firstly I don't think I owe anything, Secondly if I did surely after 6 years the debt got wrote off???
I know its only £39.12, but that's a lot of money to me at the moment as my ex left me in 2016 with over 30k worth of debt which I'm still trying to pay off.

Darksparkle

Call them and ask when the debt is for. They don't write off debts after 6 years otherwise no one would pay them. They cannot take court action after 6 years but they don't have to as have other ways to recover it.

konark

HMRC have more than enough powers to collect this debt directly by say, reducing your tax credits by a few pounds for a couple of months. Why they go through this pathetic charade of using LCS and other debt collection agencies who use empty threats but have no real powers is quite beyond me; perhaps they just like giving people grief.


Every time I get one of these 'overpayment' letters from LCS it goes straight in the bin. Sure enough a few months later they adjust my tax credit payments to recover the debt; Why didn't they just do that in the first place?

Darksparkle

Darksparkle wrote: »

Call them and ask when the debt is for. They don't write off debts after 6 years otherwise no one would pay them. They cannot take court action after 6 years but they don't have to as have other ways to recover it.

Can't answer for your case but for the OP they said they haven't claimed for 8-10 years so they can't reduce their tax credits.

salpal73

Yes that's correct not claimed for 8-10 years

dori2o

OP are you working?

If so and your income is more than £12,250 Im suprised that they havent simply collected it by adjusting your tax code.

There is no statute of limitations on most statutory payments/benefits so it can remain payable indefinitely.

Your problem will be that the appeals route will have been closed to you many years ago.

Ask them to tell you when it is from and the reason why you were overpaid.

Ask about the possibility of appealing. Then if possible, and assuming you have met all necessary requirements appeal if you can.