LCS and HMRC Tax Credits

AnnoyedNetflixUser

Hi All,

Not sure whether this is the correct forum or if this needs to go to Tax & Benefits forum, but this is spiralling out of control with LCS debt collectors.

In the year 2016-2017 I was unfortunate to be out of work and was claiming Job Seekers allowance. This meant that myself and my partner were entitled for Working Tax Credits. I soon started a new career in the timber industry and have settled in nicely.

Unfortunately, this is where the issues begin. We informed HMRC about the change of circumstances in September when I started the new job - to cancel Job Seekers. We had a new tax entitlement letter sent at the end of September which had reduced the working tax payments and had listed me as working full time, salary etc. We took this that we were still entitled to the reduced WTC payments and continued on with life.

Now, years later, HMRC are saying we owe them over £2500!! We disputed with the TC846 form and was given a response within a week where HMRC have basically said "No, we are correct and we have no record of you calling us"

My partner still has the phone record on her phone app, we are waiting for o2 to send the itemised bill for this month as more 'concrete proof' that we did in fact inform them and also have scanned the amended tax credits form we received in September. We have also sent a SAR to HMRC for all information and call recordings they have at the start of November, but we haven't had a response - how do we escalate this?

Also, my partner called LCS as the debt has now been passed on to them and have sent a final notice. They said as we are disputing the debt with HMRC, it may take 40+ weeks for them to investigate?! And they also want us to pay a token amount to stop letters being sent. I told them I won't pay a penny as that will surely admit liability?

A part of me just wants to start paying to get LCS to shut up and be done with it but we feel we are being punished for doing everything right and someone at HMRC royally screwing up, this can't be right surely?

We're trying to be DFW, but every time we clear one debt, another rears it's head and this one was wholly unexpected or known about.

Just to reiterate:
1. How do we escalate no response to a SAR to HMRC?
2. Will paying a token amount show liability if it goes to the courts?

Thanks for reading.

sourcrates

Hi,

Don’t pay LCS anything, any payment you make admits liability, thats correct, they are just acting on behalf of HMRC, so you can ignore them completely.
Continue to dispute the debt with HMRC via their complaints process.

Check the ICO website to see what to do if they don’t respond to your SAR.

AnnoyedNetflixUser

Thank you sourcrates, I will look into going down the ICO avenue.

WhenIam64

Continue to dispute the debt with HMRC via their complaints process.

[STRIKE]Don't forget that the complaints process has a number of layers. If you do not get a result from HMRC themselves, then you escalate to an Alternative Dispute Resolution (ADR). [/STRIKE]

https://www.gov.uk/guidance/tax-disputes-alternative-dispute-resolution-adr

Edit: I am incorrect. ADR does not apply to Tax Credits. Try this page

https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/how-do-i-appeal-tax-credits-decision

But it seems there is no appeal for the logical reason that you may have had money to which you were not entitled

As noted in the table above, you cannot appeal against a decision that you must repay an overpayment. You can appeal against the decision on the award that led to the overpayment, but if you have actually been overpaid and have received more than you are entitled to, you cannot appeal against HM Revenue & Customs’ (HMRC) decision to recover the overpayment.

EssexHebridean

I fear that the best you are likely to get from them is going to be an apology, but that may also come with a longer timescale for being able to pay back the overpaid money, so definitely stick with the complaints process.

loganstagger

my mum has recieved a letter from LCS Credit management debt recovery organisation asked by HM Revenue & Customs saying shes been paid too much and owes ( £1633.58 )
What on earth do we do?

why would they go through the debt agency rather then dealing with it themselves through the company in a letter or even call us up to let us know the issue?

we have also been scammed a few times by different things in the past and dont trust any companies anymore, It just seems scamming innocent people is the way to make money these days im sick of it.

my questions are -
has anyone else had this issue, asking for debts owed by HM Revenue & Customs through the LCS Credit management debt recovery organisation?
is this the way HM Revenue & Customs go about getting whats owed to them?
i just need to know if this is fake or legit?

sourcrates

loganstagger wrote: »

my questions are -
has anyone else had this issue, asking for debts owed by HM Revenue & Customs through the LCS Credit management debt recovery organisation?
is this the way HM Revenue & Customs go about getting whats owed to them?
i just need to know if this is fake or legit?

Question : "has anyone else had this issue, asking for debts owed by HM Revenue & Customs through the LCS Credit management debt recovery organisation ?"

Answer : Yes, thousands of people, they are just one of a dozen or so debt collection agencies used by HMRC.

Question : "is this the way HM Revenue & Customs go about getting whats owed to them ?"

Answer : Again, Yes, its easier, and cheaper for them to farm out bad debts to collectors, than to do it in-house.

Question : "i just need to know if this is fake or legit ?"

Answer : The latter.

Question : "What on earth do we do ?"

Answer : Write to LCS and ask for details of the debt they are chasing, the "provit" letter, available from the stickies section is most appropriate.

You should also follow the advice give previously in this thread.

nikster04

Hi all i recieved a letter today from lcs (never heard of them) saying i owe £690.25 from hmrc which is !!!!!!. Im pretty sure this amount was added at the beginning of the tax year which hmrc had already told me. Ive been paying back a tax bill for the past 2 years which i shouldnt have had to pay anyways as i had all my docs emailed to hmrc about it but still had to pay. I only have 8 weeks left and pay £30 a week i dont understand why im getting a letter now. Ive got my dd letter from hmrc which states what i pay and my last payment date. I hate dealing with theses people i know im gona have to ring but it sounds like these lcs have a bad rep by other comments ive read, is there anything i need to be aware of?. The letter says "due to covid 19 everyone has struggled to pay what they owe" i however have never been late and cant afford to pay anymore. Its annoying they are only open monday to friday as im gona be worried all weekend now

sourcrates

HMRC have been busy lately.
LCS, and your not the only one complaining about them today, only collect on behalf of their client, so if you dispute the debt, stay off the phone, and send the provit letter to them.

narriman

Hi I received a letter from LCS today asking for £5000!! Despite me paying my overpayment of £350...I even called HMRC and they said that all they do is taking overpayment of the 350 from my salary directly. What is this 5000? and what for? 

fatbelly

Send the prove-it letter and see if they can answer that question