Govt Reclaiming Money

[TwigtheWonderkid]

I've asked this on Speed, Plod & The Law but not had much of a response.

Suppose you received some money you're not entitled to from the govt, an overpayment of a benefit, or a tax rebate. What is the time limit on them claiming it back, assuming you've done nothing fraudulent to obtain the money and it's 100% their cock up.

And no, it isn't me, or anyone I know, just to settle an argument.

[Eric Mc]

Forever.

No limits.

[sumo69]

I believe under the terms of the Theft Act, you are under a direct obligation to tell them and make restitution.

David

[TwigtheWonderkid]

Eric Mc said:

Forever.

No limits.

Really??? Under what legislation. There's a time limit on most finacial claims, why is it unlimited.

[TwigtheWonderkid]

sumo69 said:

I believe under the terms of the Theft Act, you are under a direct obligation to tell them and make restitution.

David

What if you were unaware? You were receiving more benefit than you should be and you are unaware, or you're getting a benefit you don't know you are no longer entitled to.

Or you got a tax return for more than you should, but didn't realise.

[Eric Mc]

TwigtheWonderkid said:

Eric Mc said:

Forever.

No limits.

Really??? Under what legislation. There's a time limit on most finacial claims, why is it unlimited.

If somebody wrongfully pockets money they are not entitled to, it can be construed as "unjust enrichment" or even theft - and there are no time limits for recovering money taken under those circumstances.

[Eric Mc]

TwigtheWonderkid said:

sumo69 said:

I believe under the terms of the Theft Act, you are under a direct obligation to tell them and make restitution.

David

What if you were unaware? You were receiving more benefit than you should be and you are unaware, or you're getting a benefit you don't know you are no longer entitled to.

Or you got a tax return for more than you should, but didn't realise.

Lack of understanding of the regulations under which you pay tax or claim benefits is not a valid defence.

[jeff m2]

Eric Mc said:

Lack of understanding of the regulations under which you pay tax or claim benefits is not a valid defence.

Although this does cry out for your representation to be using the word "reasonable" to a jury.

That's assuming of course the person in question did not miscalculate the number of children they have.

[Eric Mc]

Or, in the case of tax, the utilisation of Extra Statutory Concession A19.

[uknick]

This quote is taken from the Money Savings Expert forum

http://forums.moneysavingexpert.com/showthread.php...


and the Paidtoshop website

http://www.paidtoshop.co.uk/archive/index.php/t-61...


"Benefit Overpayments & Social Fund Loans

The Department for Work and Pensions (DWP) has six years to take action through the courts to recover benefit overpayments and social fund loans. This time starts running from the date of the final decision made on the overpayment and from when the social fund loan was due to be paid.

But the DWP are still allowed to make deductions from your benefit for a debt over six years old as they don't need to go to court to do this.

This applies to overpayments of benefit such as Income Support, Jobseeker's Allowance, Pension Credit, Housing Benefit, Council Tax Benefit and paying back social fund loans."