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Dazz301279

Hi this might be a stupid question. I have an old tax credit debt I'm paying back with hmrc I'm on income related esa and not been moved to universal credit yet. when I do move ive been told my debt will move to DWP uc debt management but what is the difference between HMRC and DWP managing the debt

pcman1985

You may well find that the amount of money you pay back per month will be higher on UC than what you are currently paying to HMRC

Dazz301279

I thought it might and any arrears im owed on sdp claim will be taken if debt with DWP but dnt think it will under hmrc they will just carry on the way I'm paying them back I hope

pcman1985

Nothing will change while you are on ESA, when you get your SDP owed to you, you will currently receive it as usual.
You will only move to UC if a major change of circumstance happens such as
Partner moving in
Being found fit for work with ESA ending and having to claim JSA instead.

The only other way you will need to claim UC is when you are migrated over (between 2019-2022), in which time the TC overpayment could have been fully paid off.

TELLIT01

Just adding another couple of layers of bureaucracy and cost. HMRC will have to inform DWP of the debt, and DWP will have to put systems in place to ensure the recovered payment ends up in HMRC coffers.

Dazz301279

Hi I take it HMRC will only only inform DWP of a overpayments if I move on universal credit because i take it they have different debt management and I'm set up with direct debit to repay it with HMRC

poppy12345

Dazz301279 wrote: »

Hi I take it HMRC will only only inform DWP of a overpayments if I move on universal credit because i take it they have different debt management and I'm set up with direct debit to repay it with HMRC

It could be a few years that you move across to UC and by this time the debt with HMRC could be paid off.