Working tax credit overpayment

I recently received a letter saying that I owed working tax credit overpayment from 2003 for nearly £1500! 20 years ago for gods sake! Who keeps records of what they were payed 20 years ago! I am now registered disabled with Fibromyalgia, long covid and mental health issues. Can they really come after me for this money after 20 years and how am I supposed to pay when I am barely getting by on Pip? Someone please help I'm at my whits end.

Hi Diana64,

Section 28 of the Tax Credits Act 2002 tells us if the amount we have paid claimants for a tax year exceeds the amount of which they were entitled, it is known as an overpayment and we will make a decision on whether the overpayment should be repaid. How caseworkers reach a decision to recover overpayments is set out in COP26.
Where we have made a decision that the overpayment must be repaid, Section 29 of the Act says we must give notice to the claimants regarding the amount to be repaid, and how this is to be recovered. When a customer falls out of tax credits and their debt moved to Debt Management, s29(3) of the TCA2002 allows the debt to be treated as a taxes debt and recovered on this basis. 
Timescales for the recovery of some debts in England and Wales are dealt with by the Limitation Act (LA). The LA states that generally the time limit for the commencement of collecting a debt is six years from the date the debt became payable. This rule does not apply to tax credits and the pursuit of the debt. 
To discuss repayment in light of their personal circumstances I suggest they contact HMRC to discuss.

Thank you.


 

Hi,

Please note: ‘there is no time limit for the recovery of the amount payable where HMRC are not bringing actions for the recovery of debts before the court. HMRC may not pursue any debt over six years old through the courts, but we are at liberty to recover by other means’.

Thank you.