Old Benefit Overpayments

Hi,

I’m seeing a lot of clients having deductions from their benefits from old benefit overpayments - in particular Tax Credits. Having spoken to the clients, most of them obviously disagree with the overpayments however some are several years old.

Is there any-thing I can about these overpayments or has the time-limit passed for any substantive action other than contacting Debt Management to reduce the deductions on financial hardship grounds?

Thanks

Adam

I think that the time limit would only start when the claimant was notified about an overpayment.

I have had quite a few of these mystery overpayments and many claimants don’t have any memory of being told about them until (typically) they claim UC. Proving this is another matter. They may also say’but I have already paid this back’  in which case see below.

I have also had some where the overpayment was the balance of an overpayment on a joint claim and the cl and the joint claimant have long ago gone their separate ways. 

What often seems to happen is that the cl has paid off their half of the OP but the ex hasn’t so HMRC automatically try and recover that money from the cl as they are jointly and severally liable.

HMRC are in fact very helpful about this, they can recall the debt if the cl has already paid their half - the best way to do this is to send in the TC689 or the electronic version and then call the Adviser - only helpline

You can always make a Subject Access Request, which should at least clarify what the mystery overpayment is, and might show that the client was never properly notified.