Tax overpayments and pension

Hi all, I have a query in regards to my mother who is a homemaker, never worked or claimed any benefits that she is aware of, as father did everything. We have recently found out that my father put in a joint claim for the years of 2013/14 for working tax credits. Recently, my mother who will be of pension age in April, claimed UC as financial hardship due to ill health and circumstances. DWP have sent a letter stating that she has outstanding tax credits of £8330.85. No letter has she ever received, albeit she has moved around since my fathers death in 2017. We were not aware of this overpayments since only recently. I have applied for Home Responsibilities Protection to transfer the years of child benefit my father received in order for her to get the 10 qualifying years for any state pension. DWP have said they will be collecting this through her UC claim but this will be ending in April when she can no longer get UC as she turns of pension age. She will not be able to pay HMRC back this huge amount, as no savings, properties, assets etc. What can we do to let them know she will have severe financial difficulty because of this. Can they deduct from pension if she qualifies? She has become extremely worried and depressed since she had no idea of what was applied on her name and she needs financial help due to illness.

Can someone please guide me. Thanks

Hi,

We are unable to investigate your request fully without a NINO of your mother or father. I’d recommend contacting the Tax Credits helpline with your mother available to answer security questions. The advisor should be able to assist with what was claimed for, how long, when the claim ended, if it ended correctly, and give details about the debt. 

Where details of the Tax Credits claim appear incorrect, you can dispute the overpayment on gov.uk. More information on how to do this can be found here:

Tax credits: appeals and complaints

As the debt has transferred to DWP, the recovery should be discussed with them. More information on how to contact them is available on gov.uk. This link may be useful:

Repay and manage benefit money you owe

Thank you.