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Original poster

Nearly 20 year old tax credit repayment demand.

49 replies

TonyBravo · 13/03/2022 08:39

I have just had a letter fall through the door, to tell me a tax credit overpayment from 19 years ago needs paying back.

It's for working tax credits, my ex and I had a claim and then stopped it when we took a year out to move to another country. We thought it was all done and dusted but there was a paperwork mix up that resulted in an large overpayment.

Anyway, I was sure we'd paid it off but this letter arrived today. I've contacted my ex who says he's not received one and if he doesn't he's categorically not going to acknowledge it as it's so long ago.

Is there a cut off period they can ask for it back? I'm already struggling. I can't afford £1k repayment! It's a whole load of stress I don't need at the moment.

OP posts:

Hellocatshome · 13/03/2022 09:01

I dont know if there is a cut off time wise but if you do have to repay it arrange a payment plan. Keep repeating "that amount is unaffordable and will put me in financial hardship" until they reach a monthly figure you can afford.

AnImposter · 13/03/2022 09:02

My DP got one the other day for 12 years ago when he was with his kids mum! Unbelievable!

alwayswrighty · 13/03/2022 09:04

We had one of those. I was told there was no cut off date and we had to pay it. The letter was to my husband from when he was with his ex, and she got an identical letter a week later.

Stroppypants · 13/03/2022 09:06

This seems so unfair if it’s a mistake their end. As long as you have provided all the correct info but it’s them who messed up I don’t see why people should be liable for repayments.

Original poster

TonyBravo · 13/03/2022 09:06

Bollocks. I'll have to call them and set up a payment plan. 🤦🏻‍♀️

OP posts:

Original poster

TonyBravo · 13/03/2022 09:08

@Stroppypants we tried to contest it when it first happened but it was a case of our word against theirs. They claimed to have sent a letter that we were meant to sign to confirm the cancellation of the claim. We never received the letter (we we're out the country) so they asked for the whole years worth of claim back. It was a lot more but we had made a payment plan. Hence why I can't understand where this 1k has come from after all these years.

OP posts:

implantreplace · 13/03/2022 09:09

You have to pay back
Yes
And considering inflation - consider yourself lucky that they’ve not applied it!

Original poster

TonyBravo · 13/03/2022 09:14

Yes, overjoyed that a debt I thought was settled 3 whole kids ago has now appeared out of nowhere.
I can't afford more than a a couple of pound a week so they'll have to have that.

OP posts:

makingmiracles · 13/03/2022 09:18

They did that to me years ago, I repaid at a rate of £2.50 a week and eventually paid it off. I would get advice because the statue of limatations is 6yrs so maybe seek advice for citizens advice?

DrFoxtrot · 13/03/2022 09:22

That's terrible! How can anyone be sure it's not an error on their part? What's to stop them coming back in another 10 years, after you've paid 1k, because they still say you owe more.

Have you any correspondence from when you repaid last time?

implantreplace · 13/03/2022 09:24

@TonyBravo

Yes, overjoyed that a debt I thought was settled 3 whole kids ago has now appeared out of nowhere.

I can't afford more than a a couple of pound a week so they'll have to have that.

Overjoyed? Who said you should be overjoyed?

But £1000 19 years ago would be very very substantially more now if they had applied inflation

MissMaple82 · 13/03/2022 09:31

1k? That's piss all, I know of people who owe thousands. Yes they can claim it back there's no time limit.

ChipButtyCurrySauce · 13/03/2022 09:31

Insist that as it was a joint/marital claim that your ex is liable for half. Give them his details/address and they will contact him for his half. It's what I did when I got a letter for repayment when I separated from my ex. They didn't even argue, just took the details and contacted him. It's not fair the whole amount is left to you to pay back when it's half his too.

caringcarer · 13/03/2022 09:37

Agree, give them exh details and insist half of debt is his.

RandomMess · 13/03/2022 09:38

It was a joint claim so your ex will have have to pay 50%.

I would put it in writing a request to see the original debt and the payments made so you can check against your records as you believed it had been repaid in full. Once you've done that day you will only pay 50% as it's a joint claim and as you are already in severe financial hardship can only afford £5 per month.

Original poster

TonyBravo · 13/03/2022 09:46

Sorry, I'm being a miserable cow. It's hard to see the wood through the trees at the moment, I know a lot of people are in the same boat.

OP posts:

Velvian · 13/03/2022 10:05

I find it really shocking that there is no statute of limitations on tax credit overpayments. It looks like you have to pay it back OP.

Berthatydfil · 13/03/2022 10:10

@makingmiracles

They did that to me years ago, I repaid at a rate of £2.50 a week and eventually paid it off. I would get advice because the statue of limatations is 6yrs so maybe seek advice for citizens advice?

I think these debts are never statue barred so the six year rule doesn’t apply - sorry

Kirstos1 · 13/03/2022 10:15

I would contact them for a full breakdown of how it arose and why it wasn't cleared 3 years ago when you thought it was, make sure that they are actually including your repayments.

implantreplace · 13/03/2022 10:20

@Velvian

I find it really shocking that there is no statute of limitations on tax credit overpayments. It looks like you have to pay it back OP.

There never will be as it’s tax payers money So not legal grounds as doesn’t belong to them Belongs to the tax payer Hence have to pursue

Kitkat151 · 13/03/2022 10:22

I remember getting one of these letters around 20 years ago....it was for over £800 .... I had to pay 23£ a month for 3 years.....it felt like a huge amount back then....but they wouldn’t let me pay any less.....I felt like I had climbed a mountain at the end of 3 years.... hope you get sorted

implantreplace · 13/03/2022 10:23

You posted last week that your dh earns £70k?

Velvian · 13/03/2022 10:24

Social care provision is publicly funded, but there is a 6 year limit on social care contributions. I don't buy that as an exemption @implantreplace.

implantreplace · 13/03/2022 10:28

@Velvian

Social care provision is publicly funded, but there is a 6 year limit on social care contributions. I don't buy that as an exemption *@implantreplace*.

Thanks for clarity Although I can find no information for this anywhere on internet and gov sites Please could you link where there is confirmed?

implantreplace · 13/03/2022 10:29

* The Secretary of State has a duty to protect public funds and will therefore seek to recover debt in all circumstances where it is reasonable to do so. Waivers are only granted in exceptional circumstances where it can be clearly demonstrated that the debtor’s circumstances will only improve by waiver of the debt. It is not sufficient that an award of DLA or PIP has been made under the special rules for the waiver request to succeed.*

Because I can only find this

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