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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

tax credit debt transferred to DWP

dizzymare
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Welfare benefits adviser - Dudley MBC

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Total Posts: 318

Joined: 18 June 2010

I have yet another client with an old TC debt that has been transferred to UC. Tax credit have now admitted that they failed in duties but of course we are way out of time to dispute. Cant appeal, and even though they failed to act, Client also was at fault for giving incorrect information. I do not see this as an official error. I have sent this to the adjudicator.

I have been asking for discretionary write off as my client was affected by domestic abuse and has mental health problems.  This is part of HMRC guidance under rules for ‘special circumstances’ and I have successfully used this before to get overpayments remitted.

However, as the debt has now been transferred to DWP, I am told I must contact DWP debt management to ask for this. They have different guidance (and as this is UC, I believe there is a lot less flexibility)  What I am looking to confirm is whether it will be DWP guidance that im using to ask for this (it is an HMRC debt being collected by DWP?) or can I still rely on HMRC guidance?

nevip
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Welfare rights adviser - Sefton Council, Liverpool

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Joined: 16 June 2010

I had one of these recently.  Case dragged on for nearly two years.  At the end I spoke to a senior officer in HMRC who told me that in such cases the debt is transferred entirely to the DWP and it, in effect, is basically removed from HMRC’s systems and shows up as a closed matter, finally disposed of.  When I asked her if this was because it was a supra-departmental matter and as such the recovered sums bypassed HMRC completely and went straight into the Treasury’s coffers, she said yes.

dizzymare
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Welfare benefits adviser - Dudley MBC

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Total Posts: 318

Joined: 18 June 2010

thank you for your reply. I will write to debt management to see how things transpire.