www.iva.co.uk

Hubby and I have been disputing an overpayment with HMRC regarding Child Tax Credit for a while now, we got a letter to say that the overpayment stood and would be in touch about retrieving it. Well the postman has just brightened up my day (NOT). They are completely stopping our payments for 2 years until the overpayment is settled or our circumstances change.

It may not sound like a lot but its £42 per month and always comes when I really do need it. I've had a slight pay rise which will go towards easing the pain but everything else has gone up as well. Can someone please give advice?

Did they say how the overpayment arose?

Hi Briggadeen,

Sorry to hear that you've got to pay all of this back. It's not good. Speak to your IP and see if you can get your payments lowered, at least for the two years.

This overpayment arose because I was out of work for a period of time and obviously they were paying me more in the interim and then when I found work that was the overpayment. But someone at their end didn't enter the information in properly - fault at both ends.

The unemployment is what caused all our debt problems - getting so behind we couldn't get ahead again. This just seems to be getting harder and never ending.

How old are your children Brigadeen?

He's 4 only

Hi, I have recently had 'issues' regarding Child Tax Credits, a small payrise and the removal of the 'baby element' resulted in an overpayment in April and May of this year. Our payments have now reduced from £170 per month to £18 a month!!!! I have had a number of conversations on the telephone with the totally useless staff at Tax Credits and get a different story everytime I call! Makes me so mad! Is it any wonder that people are struggling to make ends meet, all this at the same time gas and electricity prices are going up . . . again!!

I am wondering if it is worth requesting HMRC to reconsider their rate of recovery of overpayment. I think you would have to write to them showing that it would cause you hardship, they normally need an I and E sheet to prove this, and as your little one means you would have an entitlement for a number of years, you've got plenty of time there for them to pay you half your entitlement and put the other half towards the overpayment. Hope that makes sense

I would certainly approach someone like citizens advice to approach HMRC on your behalf and ask to extend the repayment. Unless you are due to lose tax credits altogether next year when the threshold drops to £40k.(I think thats the plan)

Paul

a friend of mine is waiting to hear regarding an overpayment as I type and she was told that they can do a 3 year repayment plan without needing any special authorisation - 3 years is allowed as standard they said.

however if you can prove hardship then they can allow longer than 3 years to pay it back - perhaps worth pushing for longer to pay it back so that you still get a little each month? x

Thank you so much for all your replies.

The person I spoke to this morning was completely useless, I explained our situation and she hadn't a clue.

I also asked about taking a little each month but apparently we are only receiving basic family and it was declined when a referral was put through the system.

This was an overpayment which was accrued before our IVA began so I am going to ask the IP is it possible to include it within the IVA. I know it will reduce the dividend to other creditors but we have to live!!

And when it reduces to £40k we'll be ok, what I am worrying about is the other plans if you earn over £25k and only have one child they'll also axe it completely. How is this system fair??

I may be being naive, but bring back labour!

It sounds like there's hope brigadeen to spread the repayment over a longer period and so get something paid to you each month. Good luck x

Hi briggadeen,

Have you read this leaflet?

www.hmrc.gov.uk/leaflets/cop26.pdf

I also think if it was for period before IVA then you may be able to have it included, but of course would have to discuss with your IP..

I had a look at that kazzafunk! I am going to ring the payment helpline, they should be open tomorrow. I just rang the normal helpline this morning. It just seems that every time I think life will get a little easier we hit a brick wall.

Unfortunately after recovering from post natal depression I'm back on those magic pills [:(]