www.iva.co.uk

Hi,
Today I checked my banking online to make sure my child and working tax credits had been paid in, which I do every week. However, they had paid nearly £90 too much.


So me, being me, phoned the tax credits office to find out why. He didnt seem to know why but told me that next week my payments would be nearly £90 down, which evened things up, fair enough I though. He then went on to say that he noticed I had recently got an IVA and it might be down to that.

My question is why do the tax credit people need to know about my IVA? Who has told them? And who else knows about my IVA.
Im not daft and I know its for all to see on the Insolvency Register but these firms dont individually track people down on here just to see.

The fact that you are in an IVA should have no effect on your tax credits as far as I'm concerned.

You claim, and should be paid, what you are entitled to. Your tax credits are based on what you earn, not what you pay out each month.

Hopefully Mel or Andy will be on later to advise.

hi Jan,
I know my tax credit payments wont be affected by the IVA, im just wondering why it is on their records that I have an IVA and who told them? Seems a little strange. Also who else knows about it that doesnt really need to ?

I don't think it should have been mentioned at all by them. Unless they trawl the Insolvency Register, then there is no reason for them to be told as far as I know.

Our mortgage company were told as they wrote and told us we were bankrupt! I put them straight on that one! We have a secured loan as well, and if they were told, it obviously didn't bother them as we have never heard anything from them.

Otherwise, unless people look at the register, there is no need for anyone else to know.

hmmmm thats what I thought too Jan. All I can think of is my IP firm must have told them, but why? I find it very strange.

Have a word with your IP company. I've not heard of them telling HMRC before.

I can see no reason for your IP to tell HMRC that you are in an IVA unless they are a creditor??

Paul

Are you self-employed?

Perhaps an overpayment of Tax credits has been included as a creditor???

Hi,
Mel.. No Im not self employed. Im a housewife.
I have had a letter today from them saying
"Although we have paid you too much tax credit, we have stopped collecting this overpayment while we review the amount"
Once we get into April the payments are back to normal.
I still find it strange why they need to know I am on an IVA and I was never aware I was paying back an overpayment. Still very odd!
It also says
" Although we calculate that £345 is due to you will pay you £516.76 from now to 5 April because we are reviewing your payments.
If nothing else changes before 5 April 2010 you will be overpaid by £171.64 for this award period.
This is not being collected at present"

Your IP will have requested a copy of your tax credit award and if there is an overpayment it would be included as a debt. HMRC would then be notified and your tax credits restored to the full entitlement.

HMRC must have been included as a creditor on your IVA but the question is whether your income was calculated at the full entitlement or the figure used included the deduction for overpayment. This clearly will affect your surplus income and you should inform your IP. If your IVA is a single one and the tax credits entitlement is joint with your husband, he will effectively be liable and deductions may continue from your joint award.

Thanks Michael. I will look into it. Makes sense now

Do Tax Credit's know about everyone that has entered into and IVA then?? I didn't know they'd do that. I didn't think the IP could inform anyone.

The IP won't have - but this information is readily available on the public register so perhaps HMRC run regular searches of that?