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Original poster

Benefit overpayment he never claimed

13 replies

Fraudyexproblems · 25/04/2022 22:33

I originally posted in legal but someone said I'd be better off here, so sorry for the duplicate.

Hi all,

DH and I recently claimed universal credit as things are getting tight. Since doing so, we received a letter today stating he owes a few hundred pounds from a tax credit overpayment dating back 14 years, problem is, he never claimed tax credits. He did have a partner at the time but if she has claimed in his name he knew nothing of it, he was working full time on a good wage so not entitled to any benefit.

Obviously he is going to phone them after work to see what can be done, but if anyone can offer any advice it would be much appreciated.

We're really concerned this has been a fraudulent claim, especially with this letter being the first thing he's ever heard of this claim.

Didn't manage to call today but will tomorrow as we had kid things come up after school. Also going to write on UC journal and hope they can help.

OP posts:
OhLordyWhatNow · 25/04/2022 23:58

Tax Credits would have been calculated for the household and would include Child Tax Credits.

It doesn't matter if he claims to have been unaware, the debt will be claimed back from both parties, and will be on both their records/ stay with them until it is paid off in full.

carben · 26/04/2022 05:33

Agree with above. Tax Credits are / were for the household and if he was part of the household he would have benefited. The debt would be split between them both - his has just been sitting there but now that he is part of a benefit claim again they will seek to recover it from your joint UC. Pleading ignorance will not get him very far.

Butfirstcoffees · 26/04/2022 05:35

When I left exh I cancelled the joint claim we had.

He then reinstated it, tlinf them we were back together. I didn't open my own claim for a while. When I did, they contact me to tell me I owed them 2k.

I explained the situation, but it makes no difference. The debt was a joint debt and I had to set up a payment plan.

Original poster
Fraudyexproblems · 26/04/2022 07:11

carben · 26/04/2022 05:33

Agree with above. Tax Credits are / were for the household and if he was part of the household he would have benefited. The debt would be split between them both - his has just been sitting there but now that he is part of a benefit claim again they will seek to recover it from your joint UC. Pleading ignorance will not get him very far.

They can take it from joint money? I sort of expected it would have come of his share but surely they can't take it from my share? I'm a carer to my disabled child, so my share is carer element and disabled child element.
We're going to try fight it because like I say, he had no knowledge of such a claim. If he's ex claimed it, it would have be fraudulent...

OP posts:
carben · 26/04/2022 07:25

It will either be a percentage of the standard single or couple element on the UC claim.

Recovery from Universal Credit
5.19 See Appendix 2 for non-fraud overpayments where the claimant has earnings in excess of the Universal Credit disregard, this deduction is 5 times 5% of the appropriate Universal Credit standard allowance rate.
5.20 For fraud overpayments of Universal Credit recovery is 5 times 5% of the appropriate Universal Credit standard allowance.
5.21 In all other cases for Universal Credit, the deduction rate is 3 times 5% of the appropriate Universal Credit standard allowance.

Original poster
Fraudyexproblems · 26/04/2022 07:27

carben · 26/04/2022 07:25

It will either be a percentage of the standard single or couple element on the UC claim.

Recovery from Universal Credit
5.19 See Appendix 2 for non-fraud overpayments where the claimant has earnings in excess of the Universal Credit disregard, this deduction is 5 times 5% of the appropriate Universal Credit standard allowance rate.
5.20 For fraud overpayments of Universal Credit recovery is 5 times 5% of the appropriate Universal Credit standard allowance.
5.21 In all other cases for Universal Credit, the deduction rate is 3 times 5% of the appropriate Universal Credit standard allowance.

Thankyou

OP posts:
Danikm151 · 28/04/2022 11:58

If they were living together it wouldn't be a fraudulent claim. if you claimed tax credits and had a partner living with you, it had to be a joint claim. Just the same way your universal credit is now.
He may not have spent that money but it was technically half his.
Many families had the set up that 1 person works and has their wages and the other has the tax credits.

Quackpot · 28/04/2022 19:38

Danikm151 · 28/04/2022 11:58

If they were living together it wouldn't be a fraudulent claim. if you claimed tax credits and had a partner living with you, it had to be a joint claim. Just the same way your universal credit is now.
He may not have spent that money but it was technically half his.
Many families had the set up that 1 person works and has their wages and the other has the tax credits.

Of course it is fraudulent if they weren't entitled to it due to his income and she claimed anyway!

Morph22010 · 28/04/2022 19:51

14 years ago practically anyone could claim tax credits and got awarded a small amount unless they were on very high wages. I remember getting something for my son and I’m on a decent wage no where near getting universal credit

OhLordyWhatNow · 28/04/2022 20:24

@Quackpot Of course it is fraudulent if they weren't entitled to it due to his income and she claimed anyway!

It's not that black and white. HMRC could be notified of a need to stop Tax Credits but there may be a run on period that can be quite long. Depending on how much was being received it could result in a large over payment.

Morph22010 · 28/04/2022 20:27

OhLordyWhatNow · 28/04/2022 20:24

@Quackpot Of course it is fraudulent if they weren't entitled to it due to his income and she claimed anyway!

It's not that black and white. HMRC could be notified of a need to stop Tax Credits but there may be a run on period that can be quite long. Depending on how much was being received it could result in a large over payment.

Also it was before rti for payroll was introduced so hmrc didn’t know how much you’d been paid until after the end of the tax year so the award was based on year before and if your income went up you ended with with tax credits overpayment

Oldsu · 30/04/2022 04:59

Fraudyexproblems · 26/04/2022 07:11

They can take it from joint money? I sort of expected it would have come of his share but surely they can't take it from my share? I'm a carer to my disabled child, so my share is carer element and disabled child element.
We're going to try fight it because like I say, he had no knowledge of such a claim. If he's ex claimed it, it would have be fraudulent...

Show quote history

You don't have a 'share' you are part of a joint claim, I hope you get it sorted, if you are on Facebook there are several benefit sites that give very good advice. Benefit Advice Essentials is a good one

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