HMRC in the UK is Asking Me to Pay Back Money I Don’t Have. – Lolita

“Dear Jon,

My question is: i just received a letter from HMRC asking me to pay back 1465.54 pounds on my tax credit from last financial year.

I first got tax credit in july 2013 when i was on minimum wage, i then changed my job where i was earning minimum wage + service charge which was obviously more money…. the thing is that i received an amended tax credit form so i didn’t think i had to call them to make the change they made themselves about my situation. After april 2014, they wrote me to tell me i wouldn’t get any tax credit in the future because i was earning more, and that they would get back the few hundred pounds extra that has been paid to me, which they did, and they also mentioned “1465.54 pounds still to be confirmed as overpaid”. then nothing. Now i receive this notice to pay back the whole thing before the end of the month, and I’m moving back to France in December. i tried to contact them but spending 30 min on the phone for not getting anyone is annoying. I guess my question is: why do they ask me to pay everything they ever gave me back, if i wasn’t entitled to it in the first place? what will happen if i ask my taxes of this year back when i will be gone? would i get into trouble if i leave without paying back? i don’t have this amount of money and its too late for me to start disputing anything.. thanks for ur help



I understand your concerns and you do ask the age old question, “why did I receive benefits or tax credits, only to have to repay them”.

I cannot really say if you were or were not entitled to the tax credits or what your eligibility may have been. It may have been when your wages changed that you were no longer eligible for the tax credit.

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Putting that aside, if you cannot repay the monies, or get in contact with HMRC as to why this happened and work out a suitable arrangement. to repay it, then HMRC could very well try and collect the money from you.

Owing HMRC will not get you into trouble in the sense of stopping you from leaving the UK or returning to the UK at a later date. However, HMRC may very will pursue you to collect the money owed. This means they may use a collection agency, possibly seek out a CCJ/County Court Judgment, or even make you bankrupt in the UK.

As to if they will do this for almost £1500, I cannot say, however, they have the right to do so.

The only other issue you may have is depending on what country you are moving to, is if the debt gets sold to a collection agency in that country. It could then be collected there.

I hope this helps.



Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

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