HMRC guidance In 2011, following consultation with various representative groups, HMRC produced a detailed guide for intermediaries ‘How HMRC handle tax credit overpayments’.
This guide was incredibly helpful in setting out the process that HMRC used to recover debts.
If the case has a domestic violence marker, or a claimant or partner has died recently, or there is an outstanding appeal the case will remain with DM otherwise it will be passed to the DCA.
The DCA will attempt to contact the claimant to arrange payment.
The claimant will need to speak to the DCA directly – they will arrange a time to pay and consider hardship requests (which are then referred back to HMRC – see below) Eventually, after at least 12 months, if there has been no contact with the claimant the debt will be passed back to HMRC.
The case will be reviewed by a HMRC debt officer and they will attempt to contact the claimant to arrange recovery.
HMRC introduced new IT from October 2014 to allow ‘cross claim’ recovery whereby overpayments on a claim that has ended can be recovered from a subsequent new claim even if it is made in a different capacity (for example an overpayment from an old single claim can be recovered against a new claim as a couple).
See below for more detail about how cross claim recovery works.
The payment helpline is part of the contact centre directorate in HMRC.
If no response is received to the TC610, the debt will be passed from the Tax Credit Office system to Debt Management ‘s IDMS system.
When you make your claim you have one month to supply all supporting evidence and information to us.