HMRC Tax Credit Overpayment 2011

Newbie061373

Hi,

Few months ago my partner received a letter from HMRC stating she had been overpaid in tax credits 2011/12 amounting to £1700, giving x2 weeks to pay!!
We wrote a letter appealing stating we believe that the 6 year limit had been passed etc.
We heard nothing until earlier this week, where a debt recovery company called LCS has contacted us stating they had been passed the debt from HMRC and now making another demand for payment.
Is there anything we can do??
I am confused as to why HMRC would use a debt recovery service as surely they would just be able to take money straight from our wages?
Any advice would be gratefully received.

calcotti

There is no statutory time limit for recovery of benefits.

I believe HMRC, unlike DWP, do not have the power to make deductions from your wages which is why a lot of Tax Credit debt is being passed to DWP for collection.

This guide maybe helpful https://www.advicenow.org.uk/guides/survival-guide-dealing-tax-credit-overpayments

Icequeen99

The 6 year statutory time limit does apply to tax credits but it only stops HMRC pursuing court action. They can recovery by any other means.

It is likely the debt with, as Calcotti says, be passed to DWP for them to get an attachment of earnings order if there are earnings. HMRC also have other enforcement routes available that don't involve court.

IQ