Help...hmrc Debt

[hammerman]

We received a letter a few weeks ago saying that we'd been over paid for Family tax credit in 2006 to the sum of £4,721.

I totally forgot about this letter because basically, i can't remember what happened yesterday, let alone 8 years ago and can't remember ever getting that much tax credits.

Just received a letter from a debt collection centre telling us they want the money now and will send the boys round if i don't cough up now.

Where on earth do i start ?

Many thanks

[boxtops]

Get in touch with them straight away. Apart from anything else, you need a schedule of these alleged overpayments, for you to check - then if they are right, ask them to set up an agreed instalment plan for you. Go to HMRC, not the debt people - HMRC are the only people who can call off the DC boys. Keep copies of everything to show that you are negotating, if the DC team comes to your door.

[factor-fiction]

Ring HMRC but they may say they have given you the opportunity and now they've sold the debt on. Hopefully they'll engage with you and give you a fulle xplanation and agree a repayment schedule

[themas]

There are several things you can do:

1. Go here:
http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm595080.htm

It tells you that in certain circumstances the debt may be unenforceable under the statute of limitations. This does not mean the debt ceases to exist, but that it cannot be enforced by any Court action unless a County Court Judgement was obtained before the 6 year time limit expired. If you are as certain as you can be that no payment has been made on this debt in the last 6 years & that no-one (you or any joint claimant) has acknowledged to HMRC that you owe the money then you have a reasonable case to argue the debt is statute barred.

2. If that is the case, tell the debt collector in writing that you believe this to be the case & that you will not be making any payment. Ask for proof if they claim it is not statute barred. (Do everything in writing, & keep a copy & send recorded delivery.)

3. Note that if you still get tax credits, or start to do so again in the future the debt can be recovered from ongoing payments even if it is statute barred.

4. The debt will not have been sold on - HMRC don't do that, so you may have to contact them if the debt collector continues to chase you.

5. If you think you may have made payments or acknowledged the debt then you need to try to get the detailed evidence of how the amount was calculated. On the face of it, HMRC should give you this but it can be extraordinarily difficult to get them to do so. You may well want to do a Data Protection Act request to the Tax Credit Office & ask for all their records (paper & computer) & CD of all phone calls. However, I believe they destroy things after a set period so you may find they have nothing for 2006. In that case, & if you have no recollection of being informed of an overpayment it may be difficult (or impossible) for them to provide sufficient detail for you to know what this relates to & whether the amount is correct.

6. In that case you can complain to the Tax Credit Office & ultimately (if necessary) to the Independent Adjudicator & Parliamentary Ombudsman on the basis that you have been given no means of satisfying yourself that you do owe the money & natural justice has been denied to you.