To expect HMRC not to pursue tax credit overpayments from 18 years ago

[saveforthat]

My friend ( whose youngest child is 28) has received a letter from HMRC today saying she owes them £2000 from 2005. She actually remembers this and has kept some paperwork, they made a mistake and she has an apology letter from them from 2006 but who else keeps records so long? Has anyone else had to deal with something like this?

We got overpaid by £500, which we told them immediately, but they wouldn't take it back, so we had to pay it back by them taking a bit off what they paid us each month.

Then the next year, because we were no longer eligible so they wanted the whole lot back in one lump 🤦‍♀️. That was obviously going to happen because it was calculated on the previous year's income.

Complete PIA and must cause huge problems when you are borderline.

Imagine never getting a letter from HMRC that both apologises AND asks for the money back. Besides everyone who has had such a letter or works in HMRC read the OP exactly the same way I did.

How about we focus on the actual issue of what incompetent systems we have in place for the most important government agencies. It's appalling that so many mistakes are made and frankly, I do think there should be facility to not pay it back if you notify them of error, they say it's fine and / or X amount of time has passed. Maybe if they knew there were limits on their power to recoup they'd have more incentive to get it right.

but who else keeps records so long?

Tax? Me. Everything I've ever received about tax, pensions, Ni etc if it isn't just a form letter.

She could talk to her MP again, they have aides who can help with stuff like this.

PS I can see why PP are confused, the thread title and opening post make it sound like she does owe something

I hope I don't get the same , I cant remember what they said we were overpayed by , I think it was a small amount , althought I couldnt see a reason for it . Although we were entititled I didn't claim again because so many people had problems and the calulations made no sense.

Thanks for everyone's replies. I didn't mean to start a bunfight about reading the thread! To be clear. 2005 letter says you owe us money. 2006 letter (after numerous phone calls letters to/from MP says you don't owe us money, sorry we said you did. 2006-2023 nothing.
2023 You owe us £2000 from 2005.

Why wouldn't the six year rule apply here? According to most online literature, HMRC cannot chase tax after more than 20 years?

And we wonder why there are so many errors when employees cant take full facts into consideration!

@scrumptiousbuffalo
Oh yes I think you are right. My mistake. See photo from .gov below.
Although from what I've seen they can still take from ongoing benefit entitlement even after 6 years.
(Obviously in this case sounds like there is no debt in the first place)

I received a letter telling me I owed thousands in overpayments - when I’d never claimed tax credits in my life! It was a long fight and needed MP involvement before they stopped hassling me and admitted it had been a mistake on their part! Hopefully I’ve got the letter safe somewhere.

If anyone wants an update. Friend wrote to MP. HMRC have now replied agreeing that their communication has been appalling, written off anything owed and will pay her £150 for the inconvenience. Result.

I keep everything from HMRC and DWP. I also make detailed and timed attendance notes when I speak to them on the phone. They are spectacularly incompetent.