Tax credits Over payment advice needed

[Deleted User]

I wonder if anyone can give me some advice.

Today me and my husband both received letters claiming that there was a taxi credit over payment and that we owe HMRC £4500. Letters were not from HMRC but from a debt collection company called LCS.

We have had no communication from HMRC directly about any tax credit over payment so this has come as to a shock to us.

Infact only letter we have received from HMRC is A Annual Review letter that arrived last week. 

This made no mention of a over payment quiet the opposite that they thought they owed us money and would pay what's owed to us at end of July.  So very confused.

Letters give no information about the tax credit overpayment or what year it's for. All it says is amount.

Its Impossible that we have been over paid tax credits. If anything we were under paid.

For years We were only getting £53.38 a month and that's for 3 child aged 12, 15 and 18year old that's still in full time education.

And if it helps our combined income was £34000 that's both mine and my husbands, its a joint tax credit claim.

I just don't know how they have come to this figure or how we could possibly have a taxi credit overpayment.

Where do we go from here, I wanted to appeal but can't as appeal form on HMRC website asks what year over payment is for and I have no clue. Letters say nothing just amount.

Should HMRC have contacted us directly first, should we wait and see if HMRC get in touch.

Any one had dealings with this company LCS could the letters be a scam.

Worried sick right now

Any advice much appreciated 

Thanks in advance 

peteuk

LCS are a legitimate company, and yes they can buy the debt from HMRC.

It is likely that this is from a previous year and youve already been advised of this in an end of year award.   It is then usually taken from the following years award.  

I doubt they will be able to tell you much about how/when the overpayment occured so it might be that you go to HMRC/DWP to find out.

It’s worth noting that although there is no 6 year bar on benefit claims, if it is over 6 years old it’s unlikely they will take legal action.  What they may do is pass it back to HMRC/DWP who will then be able to take it from your wage without legal action.  

Icequeen1

peteuk said:

LCS are a legitimate company, and yes they can buy the debt from HMRC.

It is likely that this is from a previous year and youve already been advised of this in an end of year award.   It is then usually taken from the following years award.  

I doubt they will be able to tell you much about how/when the overpayment occured so it might be that you go to HMRC/DWP to find out.

It’s worth noting that although there is no 6 year bar on benefit claims, if it is over 6 years old it’s unlikely they will take legal action.  What they may do is pass it back to HMRC/DWP who will then be able to take it from your wage without legal action.  

LCS don't buy debts from HMRC, they work on behalf of HMRC. The debt will just pass back to HMRC if not recovered. 

The OP needs to contact the tax credit helpline or check their finalised award notices for previous years. It could be from an old claim. 

In terms of the 6 year bar - that isn't correct. The Limitation Act 1980 does apply to tax credits, so there is a 6 year bar on legal action but not on other types of recovery as you say such as wages deductions. 

peteuk

Icequeen1 said:

peteuk said:

LCS are a legitimate company, and yes they can buy the debt from HMRC.

It is likely that this is from a previous year and youve already been advised of this in an end of year award.   It is then usually taken from the following years award.  

I doubt they will be able to tell you much about how/when the overpayment occured so it might be that you go to HMRC/DWP to find out.

It’s worth noting that although there is no 6 year bar on benefit claims, if it is over 6 years old it’s unlikely they will take legal action.  What they may do is pass it back to HMRC/DWP who will then be able to take it from your wage without legal action. 

 

LCS don't buy debts from HMRC, they work on behalf of HMRC. The debt will just pass back to HMRC if not recovered. 
Google search implied they buy the debt - so apologies I got it wrong - but i did say “What they may do is pass it back to HMRC/DWP who will then be able to take it from your wage without legal action.”

The OP needs to contact the tax credit helpline or check their finalised award notices for previous years. It could be from an old claim. 
“I doubt they will be able to tell you much about how/when the overpayment occured so it might be that you go to HMRC/DWP to find out.”

In terms of the 6 year bar - that isn't correct. The Limitation Act 1980 does apply to tax credits, so there is a 6 year bar on legal action but not on other types of recovery as you say such as wages deductions. 
It’s worth noting that although there is no 6 year bar on benefit claims, if it is over 6 years old it’s unlikely they will take legal action.  What they may do is pass it back to HMRC/DWP who will then be able to take it from your wage without legal action. 

Written slightly different however says the same…the 6 yr bar means if no action take in within 6 years the debt is not recoverable eg no one has asked you to pay it and/or if they do you can challenge their evidence that it is your debt, Benefit debt is different hence rather than saying  LCS cant take legal action to recovery it, Ive noted it may be passed back and HMRC/DWP and recovered without legal action,