Posted , 6 users are following.
Hi this might be a stupid question have an old tax credit debt I'm paying back with hmrc I'm on income related esa and not been moved to universal credit but when I do ive been told my debt will move to DWP uc debt management but what is the difference between HMRC and DWP
0 likes, 18 replies
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AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
wendy17594 AlexandriaGizmo
Posted
Hi
I think I can help with this, as DWP administer UC eventually all HMRC tax credits offices will close or be rebranded as DWP so it's just a paper exercise really. One debt management section will deal with all overpayments and the government will reduce staff even further, which means the service will inevitably get worse...again 😏 .
Hope that helps
Take care
Wendy xx
daz14191 wendy17594
Posted
Hi Wendy thank you for your reply are they all one debt management at the moment or they will be eventually
daz14191
Posted
Oh and I forgot to say are DWP and HMRC debt management seperate departments at the moment
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
AlexandriaGizmo daz14191
Posted
sorry its dumping multiple posts when I press post
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
AlexandriaGizmo daz14191
Posted
Not sure why a debt your paying back to HMRC which is revenue and customs will move over to DWP which is the department of work and pensions when you are transferred to UC.
Can I ask who's told you this
daz14191
Posted
I was told by Dwp as I'm owed arrears of a Sdp claim and they said tax credit debts are collected by us and we will take this money to pay of arrears but I pay by direct debit to HMRC the money I owe them and because tax credits is under universal credit when you move on to uc they take on the debt but at the moment I'm still on old esa so hope they can't take all my arrears
jackie87522 daz14191
Posted
From what I understand, universal credit will take over tax credits along with five other benefits including housing benefit to supposedly simplify the process. So I would imagine that any debt you have relating to tax credits will be transferred aswell to the DWP who are the department responsible for this change and who are paying universal credit. I think there are a lot of people in the same situation as you and the DWP track record on universal credit is nothing short of abysmal. Introducing this new system before they knew what they're doing is stupidity and their test and learn idea means that claimants are just guinea pigs while they slowly learn by their mistakes. Incompetence at the heirarchy of the DWP is an understatement.
daz14191 jackie87522
Posted
I fully aggree I'm glad I'm not on universal credit at the min I'm still on income related esa and as my debt at min is with HMRC I'm glad it's not linked to DWP debt management because if it's anything like ununiversal credit it will end up a big mess
dee1953 daz14191
Posted
Hi, if you have any outstanding overpayments of tax credits when you start to claim UC , your tax credit overpayment will be passed over to DWP and it will be recovered from your UC. In cases where you have arrangements to repay the money already in place, you may need to agree new arrangements. If this applies to you, HMRC and DWP will write to you. However, any challenge against the overpayment (other than affordability to pay) should be made using the HMRC dispute and appeal processes.
daz14191 dee1953
Posted
So at the moment because I'm still on income related esa my old tax credit overpayments are with hmrc so are seperate to DWP debt management
wendy17594 daz14191
Posted
Hi
Yes they are as long as you remain on ESA which will probably be quite some time as the migration over to UC for existing claimants is very slow st the moment.
You will eventually get notification of the change but it's well in the future and not worth worrying about now 😊 xx
denise15811 wendy17594
Posted
Managed migration hasn't started yet and won't until late 2019. For a lot of people managed migration could be years later than that.