Tax Credits Overpayments from years ago

Digger25

Please can anyone tell me if tax Credits can chase you for Overpayments dating back to 2004? I have written several times to them but they are still pursuing me via DWP. I have read on the Internet that they should be statue BARRED and to find a legal rep. But after contacting 20 solicitors and my local MP I cannot get a direct answer. Up until last December I have not heard from tax Credits in years so this has come as a shot out the blue 

Icequeen1

I think this might answer your question: https://www.litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-can-i-do-if-i-have-overpayment#toc-i-haven-t-heard-from-hmrc-for-many-years-can-they-still-ask-me-to-repay-a-debt-from-a-long-time-ago-

My understanding is as explained on that website, tax credits debts are covered under the legislation around statute barred debts but that doesn't stop recovery by DWP via UC or by direct earnings attachments. 

Digger25

Thank..I have read that piece before hence sending TAX Credits Dispute team a letter saying as I have not heard from them I believe the debt is statue BARRED. Their response was they can continue recovery via DWP. I have rang and written to them as they have a DEA on me now and their response was... we are just the debt collectors and cannot comment. So I really don't know who to contact next.  Citizens advice were helpful but again had no idea what steps I should take to stop this

pmlindyloo

Digger25 said:

Thank..I have read that piece before hence sending TAX Credits Dispute team a letter saying as I have not heard from them I believe the debt is statue BARRED. Their response was they can continue recovery via DWP. I have rang and written to them as they have a DEA on me now and their response was... we are just the debt collectors and cannot comment. So I really don't know who to contact next.  Citizens advice were helpful but again had no idea what steps I should take to stop this

I am not sure what you are asking here.

Have you found out why you had a tax credits overpayment?  What was the reason?

If you agree that there is an overpayment then you will be expected to pay it back.

The debt is statute barred but overpayments can be collected by other means without having to go to court.  HMRC have the power to do this.  They have passed it to DWP in order for them to collect the debt.

What are you wanting to achieve?

Icequeen1

Digger25 said:

Thank..I have read that piece before hence sending TAX Credits Dispute team a letter saying as I have not heard from them I believe the debt is statue BARRED. Their response was they can continue recovery via DWP. I have rang and written to them as they have a DEA on me now and their response was... we are just the debt collectors and cannot comment. So I really don't know who to contact next.  Citizens advice were helpful but again had no idea what steps I should take to stop this

I think you have mis-read the piece and what I have said. The debt would be statute barred, but all that means is that they can't take you to court for the debt. However, they can recover via DWP and from ongoing tax credit awards. So being statute barred doesn't help you. It doesn't stop a DEA. 

Digger25

Yes thank you both i havent really explained properly here. I did have tax credits back in 2004 in joint names with my now ex husband and they say they wrote to me to say the debt was being handed over to DWP. I have NEVER had any letters etc from them. I moved 2 years ago and CAB think that from me moving possibly triggered coming after me after all this time, which is the point I am trying to make. They say they sent letters, I have asked for copies but they are unwilling to send any!? I havnt received any tax credits or applied for them since 2016 and the print out they have sent shows overpayments from 2004 up to 2016. So surely it is in dispute to just turn everything over to DWP and take out the DEA which again I had no idea of until my boss handed it to me in december 2020. I would like to fight them on this. But the DWP cannot comment on cases, they are purely the debt collectors, when you ring Tax Credits the recorded msg states all overpayments have been handed over to DWP. Hence I have been writing to the dispute team for evidence of these letters etc. and trying to fight it without any success. I just get a few lines back saying we wrote to you.. end of!

calcotti

I wonder if doing a Subject Access Request would elicit more information
https://www.gov.uk/guidance/hmrc-subject-access-request

Icequeen1

Digger25 said:

Yes thank you both i havent really explained properly here. I did have tax credits back in 2004 in joint names with my now ex husband and they say they wrote to me to say the debt was being handed over to DWP. I have NEVER had any letters etc from them. I moved 2 years ago and CAB think that from me moving possibly triggered coming after me after all this time, which is the point I am trying to make. They say they sent letters, I have asked for copies but they are unwilling to send any!? I havnt received any tax credits or applied for them since 2016 and the print out they have sent shows overpayments from 2004 up to 2016. So surely it is in dispute to just turn everything over to DWP and take out the DEA which again I had no idea of until my boss handed it to me in december 2020. I would like to fight them on this. But the DWP cannot comment on cases, they are purely the debt collectors, when you ring Tax Credits the recorded msg states all overpayments have been handed over to DWP. Hence I have been writing to the dispute team for evidence of these letters etc. and trying to fight it without any success. I just get a few lines back saying we wrote to you.. end of!

Unfortunately, whether or not you got the debt letters does not affect their legal ability to recover the debt. They have the power to pass the old debts to DWP for recovery. 

The only legal notification they need to give is the final notice at the end of the tax year in which the overpayment occurred. I can't recollect ever seeing a case where that didn't happen. 

Even if you had received a letter saying it was going to be handed to DWP, the only thing you could have done to stop it is to pay the debt in full. 

Of course you can complain to HMRC about what has happened, but it doesn't change that it is recoverable and you can't do anything about the DEA. 

If you want to dispute paying back the actual overpayments, you have to do so within 3 months of the final decision date. 

I doubt it was moving that triggered anything. HMRC just started in the last couple of years to get DWP to recover their old tax credit debt because DWP have more powers. I suspect it is just part of that exercise. 

pmlindyloo

calcotti said:

I wonder if doing a Subject Access Request would elicit more information
https://www.gov.uk/guidance/hmrc-subject-access-request

I agree with this not least because you say it was a joint claim and normally you would only be expected to pay back 50% if the debt.
Have you spoken to your ex about this?

sheramber

  

If the OP doesn't know the details of  the overpayment then she may only be being charged half the total claim.

Digger25

Regarding my Ex he left me in huge debt years ago and has had no contact with his sons over the years or myself. As I see things, I have not heard from Tax Credits or DWP until December 2020 that is the first I knew off the overpayments via the DEA being sent to my boss. I know I have not had any correspondence in years, as it is not in my nature to put my head in the sand on financial matters as I know they will only get worse! After talking to CAB , they said that 2004 was a grey area regarding Tax Credits and many people were overpaid during this time. The total amount they are reclaiming is from 2004-2016 totalling £5,300. I wonder if there is some sort of ombudsman that I could appeal to given the long time that they have left it to chase me? As I said before I did write to the dispute dept of Tax Credits saying I believed some of the debt should be statute barred given the length of time that has elapsed but just got a short letter back saying they have passed my debt on to DWP and that was that which I feel is so wrong..