DWP debt - any limitation period?

abovewater2016 · 6 July 2020 at 2:20PM

Hi All
I've made incredible progress towards becoming debt-free over the last few months. One debt that I have yet to tackle is £800 due to DWP.
I owe £300 for an advance on a Universal Credit claim I made last November when I had a couple of months with no working coming in (ltd company director - self-assessment). I was entitled £0 due to the minimum income floor issue and so the £300 is now owed.
The remainder goes back to 2012. If I remember rightly they decided I had underpaid income tax. All I remember is it was incorrect and I probably didn't owe anything. It didn't make sense that I would owe them anything.

As we know, debts are suspended for the time being and we can't get hold of them on the phone to look further into it at present but I want to get this nipped in the pub while I'm on a roll. Before I start getting this paid off, I wanted to know if anyone is aware of whether debt can be written off after a certain amount of time or due to a certain set of circumstances.... or any other suggestions as to how I can reduce the amount to get it clear?

Thanks in advance.

sourcrates · 6 July 2020 at 2:36PM

Hi,

Income Tax is not a DWP debt is it, its HMRC.

There is no limitation period for recovery of income tax, if you don`t pay it, it will eventually be taken from any state pension, or other benefit, you may become entitled to.

Benefit overpayments are subject to the 6 year limitation period, just like any other simple contract debt, but not Tax.

Torry_Quine · 6 July 2020 at 4:01PM

Benefit overpayments can and will be taken from any future benefits claimed including state pension.

abovewater2016 · 9 July 2020 at 2:52PM

Thanks for the replies. I must be getting confused with the income tax thing. The only other thing I can think of is overpayments of working tax credits but that must be from 2013 or earlier as that is the only benefit I ever claimed other than those previously mentioned. That being the case, would working tax credit overpayments be written off after six years or recuperated from any future benefit/state pension? My head isn't working very well due to stress today so I apologise if I sound a bit thick.

abovewater2016 · 9 July 2020 at 3:17PM

Managed to speak to DWP and £500 of the debt is for overpayment of working tax credits from 12/13 (unfortunately I have no financial records from this time and I really think this is a miscalculation in their favour given recollection of that year's income). I asked the adviser about whether there was a limitation period and she evaded the question. Please can anyone tell me I am still liable for the 12/13 overpayment? If not, how do I get this "removed"?