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Historic W.T.C overpayment

Working tax credits have just written to me saying I owe over £600 from 2011/12,  where do I stand? There's no way I can afford to pay it back, if I do owe it,, which I'm not convinced I do.  


I've changed from wtc to u.c and they have never informed me before that I owe money. 

Thanks

Comments

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    They is no limit on them chasing debt and Tax Credits debts are are being passed to DWP to recover.

    DWP are simply told what is owed. They have no information on the cause of the debt, only HMRC have the details. This makes it a nightmare to get information.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • HillStreetBlues
    HillStreetBlues Posts: 6,625 Forumite
    1,000 Posts Fourth Anniversary Homepage Hero Photogenic
    edited 23 February 2023 at 12:52AM
    Working tax credits have just written to me saying I owe over £600 from 2011/12,  where do I stand? There's no way I can afford to pay it back, if I do owe it,, which I'm not convinced I do.  


    I've changed from wtc to u.c and they have never informed me before that I owe money. 

    Thanks
    Unlike other debts, with the DWP you need to prove you don't owe the debt rather than get them to prove you do (they play judge, jury & executioner).
    Also the DWP can take money from wages or in your case UC.

    They will take 15% of your standard UC allowance for the "overpayment" but you can contact the debt recovery department and get the payment reduced. But you can only so the latter after the first payment was taken.

    I can't offer any advice on how to go about getting this debt cancelled.


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