Do HMRC ever just 'forget'?!

[Crimboitis]

Had lots of dealings with HMRC over the years (single mum, 3 DCs, many tax credit claims and HMRC shenanigans, so I pretty much know the answer to my title question!)

I'll try and keep this as short as possible...

I had a TC overpayment demand from HMRC (all caused by their mistake, which I repeatedly told them about). The debt went to a debt collection agency. I phoned the DCA as soon as I got the letter and said I couldn't make any repayments as I was in financial difficulties due to my TC being stopped. They were great and said they'd refer the debt back to HMRC and I would hear from them in about 6 months time.
That was back in February, so it's now been 10 months.

In my fantasy world HMRC have looked into my case, realised what a massive cock up they have made and have quietly chucked my file into the bin.

Back in the real world I know that I could be a little old lady sat in my rocking chair in 30 years time and a HMRC letter will plop onto my doormat demanding the overpayment back.

Has anyone ever had a TC overpayment demand from the HMRC 'forgotten' about?

Not tax credits but I got a budgeting loan in 2009, money was taken off of my income support for a little while then when I was moved to tax credits small payments were taken off that. In 2011 I came off of all benefits because I moved in with my partner and he earned too much for us to get anything. Last month I got a letter in the door from them saying that I still owed them £693 for the budgeting loan in 2009

My guess is they NEVER FORGET!

Yes your right they never forget.

@passthetea wow, 10 years later!

Tbh it had been that long I'd totally forgot about the loan they didn't though!

You'll always be waiting for that brown envelope to come through the door.. I would phone them and negotiate a repayment plan/argue your case again.

Two things are certain in life; death and taxes.
There is no escaping tax debts.

Go to citizens advice and chase it up. You'll get no peace until you do.

They never forget.

Lots of people have found their universal credit reduced for budgeting loans and tax credit overpayments from years ago.

We've just received a payment demand for a tax credit overpayment from a few years ago, 10 days before Christmas the bastards . We had actually set up a payment plan for it at the time, which they cancelled for whatever reason but DIDNT TELL US. So we assumed it was taken care of and then get this wonderful surprise

It will come at some point so maybe worth setting up a payment plan soon?

They don’t forget but they do sometimes admit they were wrong. This happened to me, it was so long ago that I can’t remember which tax credit it was but they made a mistake that I told them about and absolutely refused to accept responsibility for. We reached a stand off were I refused to pay and they stopped asking me. Then about 10 years later I got a letter saying that I was no longer responsible for the debt and it had been an error on their part.

They never forget - trust me! Still haunted by them due to a tax code error THEIR fault in 2014!

When I left the UK I informed them so that they'd stop paying my tax credits. Sure enough they kept on paying them for several months. Two years later they asked for the money back.

I did get them to back down with regards to the fact that I stopped being self-employed. I sent them everything they asked for and paid the last chunk I was due them (more than I had earned, but hey ho!) and thought that was that. I got a letter the following year, saying I was due them money. I rang, it was cleared up, I moved on. The next year, same thing. A couple of years ago, I received a letter telling me I was due them £1300! I almost had a heart attack, because I had had nothing in between. I wrote to them at once and told them that I was going to seek legal advice, as I had done everything asked of me, and yet was still being chased for money I didn't owe them. I received a letter about 10 days later apologising and saying that it had been registered that my account was cleared and I wouldn't be bothered any more. Thankfully, that has been the case.

I received an over payment of benefits once, when they failed to update their records.
I insisted it was their mistake and refused to pay. I had a court date came through for it. Then I recieved a letter that admitted they were at fault and I owed nothing. The letter did say that legally I didn't have to pay, but morally I should. I was a poor student at the time and didn't pay.

No they don't forget. I had an overpayment one year and offered to repay it when they told me. No, they told me to leave it. 5 or 6 years later, they decided that they wanted it back immediately . Suppose I'm lucky that they didn't go straight to the debt collectors as they seem to now.

There is a system called 'Tell Us Once' which informs all Government departments when someone passes away.

We used this for my Mum in 2017 and a couple of months later received a letter from HMRC saying she owed £354 from an tax overpayment from her job as a school librarian. I wrote back saying it must be mistaken identity as Mum retired in 1993 but no it was definitely her and could they have their money!

The Solicitors dealing with her estate took over and successfully argued that as she had been receiving a state pension for nearly 20 years, they knew where she was and had ample opportunity to collect their money.

So, no, they never forget!

I came off tax credits last April due to getting a much better paying job and got a bill of over £1000 yesterday. No explanation or breakdown, just a demand for immediate payment. Do they get it wrong?

Also got Housing Benefit overpayment which was sent straight to debt collection instead of calling me.

If you updated them and they didn't revise payments then you received that money "in good faith" and not have to pay it back.

I successfully challenged them on this right up to contacting the parliamentary ombudsman. It took 4 years mind and was bloody stressful. I had kept accurate records of every time I contacted them and insisted they sent the recording of me saying "but if you don't stop it, I'll be in an overpayment situation which will be wrong!" to which the advisor insisted I wouldn't be overpaid

Eventually got a very nice letter saying they agreed, would be writing it off and here's a tenner to cover any phone calls. A tenner!!! I didn't challenge that amount as I was just relieved it was over.

Nickname- Dog with a bone

I had a tax credit overpayment from when my now DH moved in. Then they decided that they'd recalculated my childcare element and I owed them even more. I asked them to look at it again and they didn't get back to me.

Fast forward 5 years, I leave the country and become non-resident. They then send a letter to my new address in the far East demanding full payment. Luckily I'm in a better financial position now so could pay it off in one go. They never forget!