Working Tax Credit Statute of limitations?

[vengeancedemon]

Quick question, would the 6 year rule of limitations be applicable in regard ro an alleged overpayment of WTCredit?

 

Many thanks

[mr_mastiff]

Quick question, would the 6 year rule of limitations be applicable in regard ro an alleged overpayment of WTCredit?

 

Many thanks

 

Hi, The way I understand it is that even if the overpayment is older than 6 years they can still take out of your benefits now or if you claim benefits in the future. How old is the over payment and have you challenged the figures.

[vengeancedemon]

Just had a letter saying there is an overpayment from 2007 for me ( at the time the wage earner) and also my wife has received exactly the same letter/amount/date, Have asked for details of what how when etc

[mr_mastiff]

Just had a letter saying there is an overpayment from 2007 for me ( at the time the wage earner) and also my wife has received exactly the same letter/amount/date, Have asked for details of what how when etc

 

Until you get more details on how it was worked out I do not think you can do much more. If I am wrong I am sure one of the more experienced members of the forum will let you know.

[BRIGADIER2JCS]

ANY over payment od benefits can be recovered however old it is.

There were changes in various Acts in 2012 removing certain government debts from regulation by the LA 1980.

[mr_mastiff]

ANY over payment od benefits can be recovered however old it is.

There were changes in various Acts in 2012 removing certain government debts from regulation by the LA 1980.

 

Thank you Brigadier.

[vengeancedemon]

Thank you, we shall see what they say, but oeresume wife got eactly same letter even though she was not employed because she is partner? cant be a double amount due surely ( I hope)

[BRIGADIER2JCS]

Joint claim = joint liability, not twice the amount.

[ims21]

Quick question, would the 6 year rule of limitations be applicable in regard ro an alleged overpayment of WTCredit?

 

Many thanks

 

Yes the Limitations Act does apply to WTC which is 6 years from the cause of action.

 

The limitation period starts from the date when the final determination is made that there is a recoverable overpayment and what that amount is. This could in fact be some considerable time after the year for which the overpayment actually arises.

 

Don't forget that, as has been said, this only means that action through the courts is barred. They can still take overpayments from any current or future benefits or credits.

[BRIGADIER2JCS]

If I May suggest something here The Welfare Reform Act 2012 section 108 Application of the Limitations Act 1980 effectively removed certain benefits from being covered by the LA 1980 thus meaning Statute Barring no longer applies.

 

This make some interesting reading for those advising on benefits, social fund loans and ' unemployment benefits appear to affected retrospectively.

[ims21]

If I May suggest something here The Welfare Reform Act 2012 section 108 Application of the Limitations Act 1980 effectively removed certain benefits from being covered by the LA 1980 thus meaning Statute Barring no longer applies.

 

This make some interesting reading for those advising on benefits, social fund loans and ' unemployment benefits appear to affected retrospectively.

 

This is S108 of the Act

 

108 Application of Limitation Act 1980

 

(1) Section 38 of the Limitation Act 1980 (interpretation) is amended as follows.

(2) In subsection (1), in the definition of “action”, at the end there is inserted “(and see subsection (11) below)”.

(3) At the end there is inserted—

 

“(11) References in this Act to an action do not include any method of recovery of a sum recoverable under—

(a) Part 3 of the Social Security Administration Act 1992,

(b)section 127© of the Social Security Contributions and Benefits Act 1992, or

©Part 1 of the Tax Credits Act 2002,other than a proceeding in a court of law.”

 

(4)The amendments made by this section have effect as if they had come into force at the same time as section 38 of the Limitation Act 1980, except for the purposes of proceedings brought before the coming into force of this section.

 

http://www.legislation.gov.uk/ukpga/2012/5/section/108

 

This looks self explanatory.

 

If there are other sources where it confirms that WTC is now removed from the Limitations Act can a link be provided for us to read please.

[BRIGADIER2JCS]

I did not state the WCT was affected I have not had time to look further into all the benefits affected I suspect sect 38 LA 1980 may supply some enlightenment.

[caro]

Sorry to be really thick here, but I've read before that the Welfare Reform Act 2012 allows old social fund loans etc to be claimed back by DWP, but haven't managed to find the relevant section.

[ims21]

Sorry to be really thick here, but I've read before that the Welfare Reform Act 2012 allows old social fund loans etc to be claimed back by DWP, but haven't managed to find the relevant section.

 

Yes they can be taken back through current or future benefits. Statute barring still applies to court action though. I'll see if I can find the information again...back shortly...

[ims21]

Here you go...S108 of the Welfare Reform Act

 

http://www.legislation.gov.uk/ukpga/2012/5/section/108

 

Then you need to cross reference to the three acts mentioned in sub section 3.

[caro]

Thanks ims.

 

What I don't understand is why they take the money out of benefits years later, when someone may have been working and not claiming in the interim, but dwp made no effort to collect when it could have been paid, but simply overlooked.

[ims21]

I don't know the answer to that one.

 

I guess it is rather like the banks being able to set off years later and where there has been no contact with a customer for some time.

[antone]

Thanks ims.

 

What I don't understand is why they take the money out of benefits years later, when someone may have been working and not claiming in the interim, but dwp made no effort to collect when it could have been paid, but simply overlooked.

 

The general view of departments that pay benefits, and I'm neither supporting nor opposing this view, is that overpayments tend to exist because the claimant neglected to inform the relevant department of a change of circs that affects entitlement. So they feel that you don't get to say "Well, I know I didn't bother to let the government know, but that was 15 years ago!"

 

So even if a fair amount of time has elapsed, they still feel they should be entitled to collect the money by any means they can. It's not totally unfair, I don't think - after all, LAs, the DWP and HMRC are distributing public funds, so I guess they have different rules to say, HSBC.

 

Take home from this, really, for people wanting to avoid any hassles, is to inform these departments of absolutely everything. If you win £5 on a lottery scratchcard, tell them. Cover yourself.

 

But, in terms of SB rules, my understanding is that court action is not possible for such debts after the SoL expires.

[caro]

Surely they must know when people stop signing on, so why not collect then? In fact I know of a case where there was another period of claiming within 6 years but the repayment was not taken then, but 15 years on its being taken from JSA. Combine that with struggling with the bedroom tax and there isn't enough to live on.

 

Paying it back is one thing, but surely people should have enough left to survive?