HMRC tax credit overpay

[youngestisapsycho]

I just received this letter from them, DH also got one. We owe tax credits from 20 years ago!
I’ve not heard anything from them about this in the last 20 years, first I’ve ever known about it?!

My DH was self employed nearly all of this time and did annual tax returns… why has this suddenly come about 20 years later?

Anyone else ever had similar?

Can’t post pic… says we owe £1700 and has to be paid in 30 days!

I had one a few years back and it was hard work to even get it explained,I sorted a payment plan to do it monthly,

They'll never stop hunting you for it. I kept getting hassled for my ex's half of a joint claim from 2009. I'd paid mine. It kept getting bounced to debt collectors and I'd bounce it back.

I ended up paying it back end of last year. It's just not worth it.

Yeah I’ll call them…. What they been doing the last 20 years?!

Ask them to prove it 🙄 20 years is a he'll of a time to go unnoticed surely it's statur barred as a debt??

First of all, ring them from the number on the correct website - not on the letter just in case. My accountant told me to keep asking questions till it's explained to my satisfaction.

IF it's genuine, they need to explain exactly how this figure has been arrived at. Then if it's accurate, they need to give you the chance to pay in instalments - if they can even ask for something relating to this many years ago. It's definitely worth asking your dh's accountant if he has one.

I've had this loads of times (self employed) and it's SO stressful. My income didn't vary that much, always submitted corrected figures promptly etc. Whatever they worked out, they always ended up taking it back somehow. Despite being entitled to UC top ups over the years, I've made a point never to apply again because of this. I've spent the last 3 years paying back an alleged OC overpayment which I still think is completely unfair. Best of luck.

They made me pay £1800 many years ago. I’d always been PAYE and assumed that payroll knew what they were doing, but apparently not. I paid with very bad grace.

It is my understanding that alleged debts to HMRC are not statute barred.

I believe there is a lot of information online about challenging and appealing old and incomprehensible tax credit demands.

Government debts are complicated, when they're due to a benefit overpayment.

The Limitations Act says that they become barred six years AFTER a final decision on entitlement was made - but in reality that just means that they cannot get a CCJ against you. They will recover the money from whatever the next "benefit" you claim is; whether that's UC or pension credit etc.

I’ve never claimed any kind of benefit. The tax credits I had were towards childcare when I was working. In April 2005 my daughter wasn’t yet 3 yrs old.
I had another baby when she was 4 in 2006 and stopped working and getting any tax credit for childcare. I didn’t work for 5 yrs after my 2nd child. Never claimed any benefits as DH earned well. Have been working again since 2011 and never claimed anything.
I just don’t understand how they’ve not said a word for 20 years??

Anything to get more money out of people! 🙄

Tax credits were a benefit like UC is , it was just a socially acceptable one.

I am repaying some TC at £10 a month until 2032 - if they can afford to wait 10 years for the sake of a thousand quid then I will make them bloody wait for it!!

We got "overpaid" because I got a job mid tax year. I told them and payments stopped immediately and then then later deemed the ones we had had from April until my job started were "overpaid" - I mean, I literally had zero income at the time which is why I was claiming them but ok 😵‍💫.

I know UC has issues but they are better than TC in the sense that they are adjusted in "real time", not backdated using a whole year's worth of income that wasn't necessarily spread nicely over 12 equal payments. If we hadn't had the TC at the time we couldn't have afforded to eat but suddenly I "didn't need them" cos of what I earned 6m later?! Wtf

Ring them but off the phone number on the website, not on the email or letter, sounds a bit scammy to me.

So.... I called today. after holding for 27 mins I spoke to someone who told me:

Them: Don't worry about it, I've just pulled up the guidance for your case and it's all cancelled, you don't need to pay anything

Me: So I don't owe anything, are you sure? Letter says I owe £1700 and have 30 days to pay

Them: No, its all cancelled

Me: Oh great, and will I be sent a letter to confirm this?

Them: No you won't

Me: Oh, so its def all cancelled. What if I had just called the payment line and made the full payment?

Them: Oh it probably wouldn't have let you pay.

What a bloody shambles!!

Blimey. I have had a letter too but for more recent years, might ring them and check then.

It could be as it is the final stage of TC now it is all changing to UC. maybe that is why they are sending letters.

Yes, I think it may be something to do with that...