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Sam, Accountant
Category: Tax
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I have just received a letter from HMRC saying i owe

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Hello i have just received a letter from HMRC saying i owe £1630.31 for working tax credits and child tax credits overpaid to me in 2005 it also says they have written to me about this before but this is the first letter i have received i have lived at my present address for 3 and a half years i phoned up sat and spoke to someone but they wouldnt tell me what address the other letters went to. I am not disputing that i owe the money but i would like to know why its taken 10 years to get in touch.
HI Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.First ask them (in writing) to provide copies of this supposedly earlier notification they issued (as its probable that this may not have happened) and also ask them to advise you how this over payment was made up as as far as you are concerned you were paid the appropriate amount for your income position and circumstance for that year. So ask for copies of the relevant award notices for that year both at the start of the award year, any changes they made during that year and the final award which should have detailed, what was paid v what was due balanced. Also ask why it has taken them almost 10 years to even establish there was an overpayment, as you had every reason to believe that the award made was correct following the end of year review, and why this has not been drought to light in a more reasonable time limit. Also tax credits are subject to time limits (unlike tax) see this from the debt management HMRC manual There were changes from 2013/2014 and the way in which debts could be pursued - but as this alledged debt relates to prior to that time, then the statute time limits should be taken into account. (And its this reason they are probably stating they had contacted you - so they could in essence extend the 6 year limit from the last contact on this matter - so this is why its imperative that you ask for evidence of that notification incase that allows them to pursue this This is an initial way to get the matter to be opened up with more clarity - and by all means do come back once you have all that evidence - but the above gives you guidelines as to grounds to squash the charge (one if its wrong, two - due to the time limits) Let me know if I can be of any further assistance THanks Sam
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