LCS chasing but already paying HMRC

dadude

This all started with concentric scum. But to cut a long story short. After 3 years arguing , HMRC decided that they don't care that I was given bad advice. I claimed as single, as my partner was not entitled to benefits.
I claimed less, rather than more. But because I claimed as single they want ALL of the money back, that even they say I am entitled to.
They want £8200!
Which they are claiming back by means of stopping all of my tax credits.
Which, although I don't agree with the original decision, I'm ok with.
But, suddenly, LCS are also chasing the same sum of money.
I emailed me, thinking they would follow up with HMRC.
Weeks later, I have another letter from them, asking for the money!
I wrote on the letter "stop sending letters. Already paying HMRC"!
And posted it back to them.
Should I ignore them, call them, call HMRC, or another course of action?
Makes me angry.......... incompetence!!!!!
Thank you for any help you can give me.

Icequeen99

Have you asked HMRC to apply notional offsetting to the original debt? If you claimed less than you could have done, you should get full offsetting unless they classify it as a fraud case.

IQ

calcotti

Information on notional offsetting is included here https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/

dadude wrote: »

... I was given bad advice.

Was this by HMRC?

In respect of LCS I suggest contacting HMRC Debt Recovery and asking them to recall the debt from LCS. However they may tell you that you should be paying LCS not HMRC https://www.gov.uk/if-you-dont-pay-your-tax-bill/debt-collection-agencies.

sheramber

You need to ask with HMRC what the current position is ?

Why are LCE contacting you when you are paying HMRC direct?

Are you still claiming tax credits? They will only be able to set off your tax credit money if you have a current claim to set off.

Or have they cancelled your claim to tax credits completely?

There is no point in getting angry with the people on the phones as they can only tell you what is shown on the computer.

The debt company are following HMRC instructions to collect the debt . They have no knowledge about it or what arrangement you may have with HMRC.

You will get more results if you are calm and polite.

The time to get annoyed is once you know all the facts and if there has , in fact, been incompetence.

calcotti

sheramber wrote: »

Are you still claiming tax credits? They will only be able to set off your tax credit money if you have a current claim to set off.

To be clear, deduction from an ongoing award is different to notional offsetting. Notional offsetting is where an incorrect claim has been made and instead of claiming all of the money back an allowance is made for the tax credits that would have been paid had the correct claim been made. In this case had the correct couple claim been made the maximum benefit entitlement would have been the same because partner had NRPF but the actual benefit payable could have been less because any income partner had would have been taken into account.

dadude

Thank you for all your help.
I called HMRC, and I am no longer able to claim any tax credits. So, they can't take payments from there. I was told to call LCS. Which I did.
I have to say, LCS were pretty helpful. They said they could give it back to HMRC, but they will just hold it until I can pay, but may charge interest. Or contact Stephanie, who will go through my finances with me. LCS will accept whatever they propose.
In the end they said they will take whatever I offer, as long as I can afford it, but the minimum is £10 per month.
I said ok. Very reasonable, considering the sum involved.
And there is no time limit in which it needs to be paid.
Still don't like concentrix. But LCS have been good .

Icequeen99

dadude wrote: »

Thank you for all your help.
I called HMRC, and I am no longer able to claim any tax credits. So, they can't take payments from there. I was told to call LCS. Which I did.
I have to say, LCS were pretty helpful. They said they could give it back to HMRC, but they will just hold it until I can pay, but may charge interest. Or contact Stephanie, who will go through my finances with me. LCS will accept whatever they propose.
In the end they said they will take whatever I offer, as long as I can afford it, but the minimum is £10 per month.
I said ok. Very reasonable, considering the sum involved.
And there is no time limit in which it needs to be paid.
Still don't like concentrix. But LCS have been good .

That is fine for now, but if you ever need to claim Universal Credit in the future they will take a much bigger repayment from you. I would honestly suggest you go down the notional offsetting route and get the debt reduced. There is nothing to lose by trying it.

IQ