ok thanks for that.

I got a letter this morning from Sigma Red. it says "we have been instructed by our Client HM Revenue & Customs (HMRC) to contact you to arrange payment of the outstanding balance....." it gives details of the debt which is 1500 ish and has the usual legal jargon about commencing court proceedings etc etc. it relates to an overpayment of Tax Credits from 3 years ago. I had a letter from HMRC 4 weeks ago regarding this. This is the first i knew of it as i no longer claim tax credits and i have changed address, and i'll be honest i put it on one side and then forgot about it. I am in my 50's now a full time carer for my young grandson. His mother is a nurse. I do not claim any benefit or have any income/savings and live in my daughters home free of charge. So firstly, have HMRC sold this debt to Sigma Red or are they actually "acting on behalf of"? secondly, since i have no income how could i be expected to pay this? could my daughter be expected to pay as i am now effectively her dependent? Thirdly, i know some debts with HMRC used to carry "criminal" penalty for none payment.. ..is this still the case and is this one of them? thanks for any help.....