Income tax rebate?

landylad

So last year DWP told us that mum had been receiving pension credit for years that she wasn't entitled to. Shocked and horrified to find she owed thousands of pounds and had to pay it back. She knew nothing as she was 92 and had dementia. We sorted out repayment plan but sadly mum has now passed away. Not even her funeral yet but I've been asked to send a cheque by 20/05/23.
I don't have over £20000.00 lying around so that's not happening. 

I've passed it on to solicitor. Don't want to sell her house because she has for the last 20 years promised it to her grandson -  not legally but knew I would make sure he got his first home. 

My question is the money she was paid would have caused her income tax to be higher, she paid tax on 2 small private pensions. All income was clearly visible to HMRC.
if I somehow manage to get together the full amount of what she owes to DWP and clear the debt will HMRC now have to give me a tax rebate for  the  over payment if tax for all the years she was receiving pension credit? 

Dazed_and_C0nfused

No idea why you think a tax refund would be in connection with this.

Pension credit isn't taxable so HMRC wouldn't even know about it.

gbhxu

Depends who's fault it was that overpayment was made.

Have you done an MR or even considered going to tribunal?


I managed to get my father off repaying about £13500 at tribunal stage. The judge didn't like the fact that the DWP didn't send a representative. The DWP also shot themselves in the foot because they even stated themselves that he should have been reassessed but wasn't

peteuk

If the amount owing doesn’t change ( if you don’t challenge it) then you could set up a payment plan, although I’m not sure how it would work coming from someone else’s account.

The problem you face is the house isn’t left, legally to her grandson.  It’s is part of her estate either way and before being passed to him the estate needs to clear its debt.  Which at the moment stand at £20K.  If you sell it you can pay the debt, give him the money and he can use it as a massive deposit for another house.