www.iva.co.uk

I now have another problem now!

Tax credit overpayment: we were over paid these in 2003/2004 and had come to an arrangement with IR to pay back at £x per month, which we did. We were then not entitled to any more tax credits after this date. Then we both went bankrupt. I was advised by CAB that because this was a previous debt and we were paying it back in an arrangement, that this debt would be included in our bankruptcy. I rang the IR once I was bankrupt and spoke to a few people who really had no idea whether I should still be paying or not! I eventually got an answer and was told “NO, I DO NOT NEED TO PAY THIS AND I SHOULD CANCEL THE DIRECT DEBIT” (their exact words)

I have today found out that the sneaky so and so's have re-started the direct debit and they have taken 4 payments out of my account since December for this debt! I cannot believe I had not noticed, a lesson there to read PROPERLY my bank statements. I have cancelled this direct debit and the bank says they will try to get my money back, but I am so confused now as to whether this debt still has to be paid after bankruptcy???? If I put this down on our I&E (the OR has requested another one!) we will be short of money every month, we have more going out than coming in, what will OR have to say about this??? (bearing in mind, they are pushing for an IPA??)

Jane, I would contact the OR dealing with your case and explain-I know you're not on best of terms so why not email them? That way you will have the email as proof you contacted them regarding it. Tax credit dept at IR can take a very long time to sort out messes and, as the debt should have gone into the bankruptcy anyhow, your OR should be contacting them to get it sorted, might help them get a move on.

ps. love your avatar....xx

Hi
Also under the banks direct debit guarantee the bank MUST refund this money,go back to your bank and demand a refund,quote the direct debit guarantee
Regards

Did you really owe this money anyway.
Did you not report a change or did they get it all wrong?
I say this because my daughter was pursued by WFTC because she filled in her application on line. She is a lone parent and they claimed that she had put that she paid over £3000 per week! in child care and that her earnings were nil.
They never came up with a copy of the claim form.
They said they overpaid £5000. She became so stressed that she was going to make an offer of payment.
She had been to CAB, MP and followed every channel she could.
I said don't dare pay. She didn't and after a time all these old ridiculous claims were abandoned.

Jane

The other posters have given good advice here - leave this to the OR to deal with, but you should get a full refund.

Is the picture on your avatar your cat that you lost but then found?

Yes, Melanie,
thats George .. I think he looks as if he understands everything we're saying.. wonder what he's thinking !
[:)] admin

i work in benefits (don't shoot me) and we see the effects these errors have on people.
tax credits are a nitemare. they are forever overpaying people. i've known people stop working and they continue paying working tax credits regardless and then they sting them with a big overpayment even though they were notified but chose not to stop payments or even suspend them.
my friend was overpaid (due to her own fault on this occasion) and they offered her a loan to pay the arrears then for her to pay the loan which i'd never heard of before.

OMG!!! The IR setting up in the loan business??? Well the government did step into NR and now it's natioanlised, maybe it's a way of drumming up business for NR..... lol [:D]

Thanks for all reassuring replies.

I had better let OR know I suppose, although I did ask whether I should be paying this debt back at my OR interview and was told that they don't know! (well, if they don't, there is no chance of me knowing, is there??) [:0] I am just panicking now in case I start getting hassle from IR!

Yes, the cat in my pic is my George who ran away and we eventually found him [8D]

Good luck with the OR, you should be ok but you want to follow up on what Andy said about the D/D guarantee.

George is beautiful, no wonder you were so upset when he went missing.

George is lovely x

I too have been asked for the same tax year for over 3000 back even though I was told it had been sorted.