Tax credits, notice to pay letter from HMRC

peteuk

Newcad said:

A number of people migrating from Tax Credits to Universal Credit got similar letters from DWPs 'Debt Management' about old (sometimes very old) Tax Credit overpayments that HMRC had not been chasing but DWP will chase.

Most migrating from Tax Credits to UC are finding just how lenient the TC system was compared to other Income Related benefits, so lenient that most people didn't even regard TCs as income related benefits even though they clearly were.

As tax Credits end entirely on 5th April 2025 I'm not at all surprised to see that those who are no longer on Tax Credits (so won't be migrating to UC) and who may have been overpaid in the past are also being looked at again to see if they can now be persuaded to pay something back.
I don't think that it can be any more than persuasion at this time.

I suspect that we are going to see more of this in the next few months as the Tax Credits system is wound up.

I'd suggest that the best thing to do is to stall, don't agree to anything and definitely not to repay anything.
The DWP/HMRC are tryng it on, see what happens next.

What happens next is they approach the employer and take it from the wage.  Although I agree to stalling, I disagree with the advice given.  Contact them, if you believe it is wrong then challenge this, if not you owe it and sadly you’ll need to pay it back. One way or another so as I see it best on your terms than theres.

They accept payment agreements, mine is £25 a month.

sammyjammy

Newcad said:

A number of people migrating from Tax Credits to Universal Credit got similar letters from DWPs 'Debt Management' about old (sometimes very old) Tax Credit overpayments that HMRC had not been chasing but DWP will chase.

Most migrating from Tax Credits to UC are finding just how lenient the TC system was compared to other Income Related benefits, so lenient that most people didn't even regard TCs as income related benefits even though they clearly were.

As tax Credits end entirely on 5th April 2025 I'm not at all surprised to see that those who are no longer on Tax Credits (so won't be migrating to UC) and who may have been overpaid in the past are also being looked at again to see if they can now be persuaded to pay something back.
I don't think that it can be any more than persuasion at this time.

I suspect that we are going to see more of this in the next few months as the Tax Credits system is wound up.

I'd suggest that the best thing to do is to stall, don't agree to anything and definitely not to repay anything.
The DWP/HMRC are tryng it on, see what happens next.

Dangerous game unless OP wants it taken from their state pension.  Its best to engage and challenge.

Newcad

sammyjammy said:

Dangerous game unless OP wants it taken from their state pension.  Its best to engage and challenge.

Which is what I meant by 'Stall'. (I didn't say 'ignore' because that would indeed be a stupid thing to do).

sheramber

Newcad said:

sammyjammy said:

Dangerous game unless OP wants it taken from their state pension.  Its best to engage and challenge.

Which is what I meant by 'Stall'. (I didn't say 'ignore' because that would indeed be a stupid thing to do).

What do you anticipate that ‘stalling’ would achieve apart from having  to repay anything due   

at a later date. 

The OP doesn’t need to agree anything. He needs to establish the correct position now.

One thing is sure, stalling eill not make it go away.

Don’t think you will upset anybody by doing that.  It is a debt on a reference number that is not personal to any  personnel working on debt recovery. 

Why stall if you have to pay it eventually?

HillStreetBlues

sheramber said:

Why stall if you have to pay it eventually?

Inflation & interest.