www.iva.co.uk

hi,

I am in a IVA for the last 12 months, but now have Tax credit people chasing me for overpayment, I have tried fighting them as this was a mistake on their behalf! - I can not afford to pay as what I have pays for my current IVA!
can you advise?

Hi Jason and welcome to the forum

Does this relate to a period after the IVA or before you entered into it? If the latter, this claim ought to be included in the IVA, if the former HMRC will reduce your current tax credits in order to recoup the balance.

The only thing that you can really do is to continue to negotiate with HMRC - especially if you feel that this relates to a mistake on their part.

Thankyou for quick response!
IVA started in Dec 2007, and early part of 2008 HMRC said that between myself, and my partner we have been over paid for 2006/07 - so they are now after overpayment from me, and a seperate one from my partner! - my partner is a full time house mum! - and I am the only main income earner, so you can believe this as a shock, knowing that one has made the step to collate all debts, to then be told you owe for overpayment! - They are not moving on this! - they will not accept anymore appeals from us!
They will not take this overpayment out of our current tax credits as we get very little. Their words...not mine!

This is a debt which should be included in your IVA. Get your IP to sort this out directly with HMRC.

Thankyou!

Will keep you posted on how I get on, in case it may help anyone else!

don't think you will have much luck getting HMRC to forget about overpayment. Very few cases are " not there fault" and as its Inland Revenue now rather than benefits agency they do not wait around and can issue court proceedings quite rapidly. You don't have much bargaining power. I am in the same position and just waiting for official letter which I will send to IVA company.

But they do have a dedicated team in the Worthing Enforcement office, who I find very helpful. If anyone is having tax credit problems, and they are either in an IVA or are bankrupt, I would be happy to provide a name and telephone number for you. Please make contact with my directly via my website.

I had to make a seperate arrangement for my tax credits overpayment. Mine was from before my IVA was agreed.
My company which was Clearstart said I had to do it this way. I had a payrise so managed to cover it out of that. I pay 24.00 per month.

I don't understand why that happened - any monies owing to the tax credits part of HMRC and are due at the date the IVA commences, are definately claims which are dealt with in the IVA - they should not have taken that money from your post IVA credits.

Emm it is strange but I just did what I was advised at the time. The IVA is with DFD now and I have just sent all my paperwork off to them for annual review,I hope it doesn't cause problems, it's there on the bank statement for them to see though. Im just glad I had some extra to pay them the arrangement.

Hi,
Phoned my IVA company and they have agreed that this should be taken into account as they are chasing for a overpayment before my IVA started - so they have asked me to send in the letters and they will ammend my IVA! - will keep you posted

That's great news Jason - although I don't expect you will see any of the money.

Hi - exact same thing happened to me - after IVA was approved. Taxcredit people were chasing me for overpayment of £700, and even though I took them on and had all paperwork to prove it was their fault,I was just fighting a losing battle - they absolutley wouldn't accept blame! Anyhow, I got so fed up of the whole thing I ended up conceding and offering to pay what I could. After discussion with the department and explaining to them I was in an IVA i offered the ridiculous amount of £5 per monthand was amazed when they accepted there and then!!Not bothered that it will take beyong iva to clear,wasn't my error in the 1st place so am making em wait!!