I’m being taken to court following a tax credits overpayment – what should I do?

Question – “I’m a bit concerned about a tax credits issue I am having currently. The tax office overpaid the amount of tax credits that myself and my ex-partner were due to receive and are now trying to reclaim this back with legal proceedings brought against us.

The thing is, as my partner and I are no longer together, it’s been difficult trying to sort out who is responsible for paying this back. I have stated to the tax office on more than one occasion that, whilst I am absolutely willing to pay back my fair share, I cannot afford, nor do I feel I should be held accountable for his half.

He’s been very uncooperative so far and I feel that I am going to be burdened with the debt. The tax office have put the full amount on my shoulders – as it’s highly unlikely that he’ll show up to any court hearing, this means that I am going to struggle to make the repayments. Is there anything I can do?”

Answer – If you both received tax credits as a couple, then you are both liable jointly and severally to repay. Nevertheless all is not lost. You should start making instalment payments now, and if it goes to court you can explain to the judge how reasonable you have been. If he does not attend court judgement for the full amount will be entered against him which is to your advantage.

At Hylton-Potts we are experts at dealing with problems like this and have a free email and telephone helpline.