Tax Credits Overpayment Repayments Cleared by HMRC

We have an outstanding debt with a 3rd party collector, and been in place for 2 years. We have just (had) to migrate over to UC, and realised that the agency had stopped taking payments. When we contacted them, was told HMRC had credited the account, but not had anything from HMRC about this. We are concerned this will now come back, with a higher repayment from HMRC via UC having a had an agreed arrangement with the 3rd party collector.

Hi,

You should have received a letter to confirm Tax Credits has stopped the Direct Debit for the debt. You can see guidance here:

Tax credits overpayments

When you transfer to Universal Credit any debt is sent to DWP also. DWP should contact you to start recovery of the outstanding balance. We do not have a timescale for this. However, if  you are worried you can contact the DWP debt management team. More information on the outstanding balance and contacting DWP Debt Management can be found here:

Repay and manage benefit money you owe

Thank you.