www.iva.co.uk

Hi

I receieved a letter yesterday to say that i had potentially been overpaid in my tax credits for 2010/2011. Is this something that can be included in my iva, or will it be somthing that i will have to pay back separately (I have been in an iva since march 2009). When i definately know what im looking at i will contact my iva company, just wanted to know what situation I was potentially looking at.
Thanks for any help

Not sure about this one - hopefully one of the experts can help.

Hi there, I had this too. We got over paid by just over £200 last year and then had all our tax credits cut. Was the first year we had ever claimed any! I have arranged to pay £20 a month but haven't put it on my IVA, just assumed I would have to just find the money from somewhere! Do you have a lot to pay? I would contact your IP and ask. We are in the process of pitting forward a full and final offer so I guess that is why I haven't.

Im not sure on this one either & Im wondering if its because its happened in the IVA if it can be included or not.

I do know that if you cant afford to pay it back in full, then you can pay it back across 12 months. It may even be possible to make your IP aware of this & have your IVA payment reduced to help pay it back, then resume normal payments after is been repaid? Just a thought.

We've had a similar thing happen to us twice in the past (pre IVA). They sent us letters saying we had been underpaid and they deposited the funds in our account. We questioned both these and they said we get to keep the money as we were entitled to it, we even held on to the money for over a month after speaking to them just in case it was wrong. After a few months we got letters stating it was a overpayment and needs to be paid back. We got in touch with them again asking what's going on and told them it was their fault not ours and on their forms it states that if the overpayment was their fault they would not seek to retrieve it, BIGGEST LIE EVER!. They wanted their money back, but we could never afford to pay it back in 1 lump sum. So we told HMRC that we could not pay it back in 1 go, so they ammended our tax credit award and got their money back over a couple of years.

If you get in touch with HMRC and tell them you can't pay it all back at once then they will probably just ammend your award slightly to claim it back.

One thing we have learned is that they will get their money back one way or another regardless of what they put down in writing.

I think since the debt is from after your IVA started then you wouldn't be able to include it.

Thankyou guys for your responses, i dont have a figure to pay back yet but have had a letter from the review team to say there has definately been an overpayment. I am now waiting for them to send though the finalised claim from last year and the new one from this year. Hopefully they won't try and take it all from this years claim as it may wipe it out completely and that would leave my up the creak without a paddle. If it can't be included thats fine and i will just ring them when i have all the details and make an arrangement. Bottom line is they can't have what i done have and i think that they are not allowed to put you in financial hardship due reclaiming an overpayment but may be wrong.

thanks guys

Hi, HMR&C have formed part of our IVA debts,we did a F&F IVA with help from my parents. HMR&C have been very difficult to deal with from what Mels team have told us. we expected to have had our completion certificate through by now but Mel's team are still waiting for a final figure from them,BUT Liz, (Mel's team) has expressed confidence that we should have the figure in the next 3 weeks!!

keep your fingers crossed...eye's...toes all positive vibes will be appreciated!

I am sure that the debt can be included in the IVA, but it will depend upon the timing of the determination notice. That is good news Rosepetal. Liz has a great relationship with the tax credits people and if she says she can get it sorted in three weeks I am sure she will.

Thanks Mel, what do you mean by timing of the determination notice? The overpayment will be from last years claim and i have been in a iva since march 2009.

Surely debt cant be included if it was run up after the IVA was started

Hi Mel, yes you have a good team working for you so let's hope Liz can get this closed off for us all! I can't wait to get off that insolvency list!

Hi - RHB I don't think debt incurred during the iva can usually be included either. But the rules may be slightly different for tax credits overpayments as it wasn't intentional new debt. Hopefully the IP can clear this up on Monday x