Bluestone Credit Management and HMRC

[Deleted User]

Newbie here!  Thanks for any assistance.

Got a letter from these saying that HMRC have paid me too much tax credits and I need to pay it back. All discussions & payments have to go through them.

This is the first I've heard about this, nothing prior from HMRC. I remember a claim for CTC being live for some years and still ongoing in March 2012 when my now ex-wife and I separated.  The money received from this claim went into her own bank account (along with the family allowance), not into our joint account or my personal account.

My ex has continued to claim CTC and more recently WFTC and has recently moved onto Universal credit and has had some sort of overpayment of credits around the same amount claimed owed by me, which she has already paid with assistance from someone else.

I am not working and am in receipt of Support Group ESA and PIP enhanced Care and Mobility.  I am waiting for our now repossessed ex family home to be sold and then intend to declare myself bankrupt, if this makes any difference.

Do you think there is any merit in this claim from Bluestone?  It's almost 8 years since I had anything to do with tax credits.  Many thanks for any help!

calcotti

HMRC are actively chasing historic Tax Credit debts so this may well be correct, however you may wish to contact HMRC to confirm.

if the debt debt is from when you had a couple claim HMRC are allowed to recover the whole debt from either party but normally try and get half the amount from each party.

Did you tell HMRC when you separated so your ex had to make a new single person claim?

[Deleted User]

Hi calcotti and thanks for your reply.

When we separated my Ex updated the claim to be in her name only and it has remained that way for the last almost 8 years.  I know she was and still is paying around £10 a month for some sort of historic overpayment but HMRC haven't written to me before, about that or any other overpayment.

I moved out at the end of March 2012 and have moved another twice since but have always been on the electoral roll

sarahg1969

Limitation applies to tax credits like any other debt but they can adjust your benefits to reclaim it. They could also code it out if you’re not on benefits (but I’ve never heard of that being done). What they cannot do is issue proceedings.

We had them chasing us for years over an alleged debt from 2003/4 and last year was the first year we didn’t get a letter. We always tell them limitation has expired and to stop writing. 

calcotti

sarahg1969 said:

Limitation applies to tax credits like any other debt but they can adjust your benefits to reclaim it. They could also code it out if you’re not on benefits (but I’ve never heard of that being done). What they cannot do is issue proceedings.

We had them chasing us for years over an alleged debt from 2003/4 and last year was the first year we didn’t get a letter. We always tell them limitation has expired and to stop writing. 

In this case OP is on benefits so any Tax Credit debt could be passed to DWP Debt management and deducted from benefits. In this case that obviously hasn't happened (yet).

sarahg1969

calcotti said:

sarahg1969 said:

Limitation applies to tax credits like any other debt but they can adjust your benefits to reclaim it. They could also code it out if you’re not on benefits (but I’ve never heard of that being done). What they cannot do is issue proceedings.

We had them chasing us for years over an alleged debt from 2003/4 and last year was the first year we didn’t get a letter. We always tell them limitation has expired and to stop writing. 

In this case OP is on benefits so any Tax Credit debt could be passed to DWP Debt management and deducted from benefits. In this case that obviously hasn't happened (yet).

That’s what I said in my first paragraph 

[Deleted User]

@sarahg1969 Limitations - as the most recent date this could possibly be where I was part of a joint claim is almost 8 years ago, does this mean that time has run out for them to try to get any alleged debt paid?  Can I write to them and just say that limitation has expired and to stop writing?  When you say that they cannot issue proceedings could you explain what that means, please?

Many thanks! 

calcotti

desktop said:

@sarahg1969 Limitations - as the most recent date this could possibly be where I was part of a joint claim is almost 8 years ago, does this mean that time has run out for them to try to get any alleged debt paid?  Can I write to them and just say that limitation has expired and to stop writing?  When you say that they cannot issue proceedings could you explain what that means, please?

Many thanks! 

They can continue to chase you for the debt but they cannot take you to court (that's what cannot start proceedings means). If at any time in the future you claim a state benefit (including, I think, your state pension) they will be able to deduct any debt owed from that benefit.

[Deleted User]

Thanks.

Would I be able to include this alleged debt in my impending bankruptcy?  I'm not doing well, health wise and have no energy for another fight.

Alice_Holt

desktop said:

Would I be able to include this alleged debt in my impending bankruptcy? 

  Unless fraudulent, I believe you can.
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-explained/debts-that-bankruptcy-covers/

[Deleted User]

That's a relief.  At least that means that I can maybe stop stressing! I genuinely have no idea where this has come from.  I've had zero correspondence from HMRC about this.