been overpaid on working tax credit

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sheila.js

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Post by sheila.js » Sat Jun 26, 2010 9:38 pm
Hi,i have been doing an iva since march 08,i have been keeping up to date with it but i have been overpaid on working tax credit for the year just gone so i have been told i have to pay it back,if the amount is alot i havent been told yet how will i pay them back doing an iva as things are already tight?would i be betta off going bankrupt? if so could i include the tax overpayments? thanks for reading.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jun 27, 2010 12:22 am
It will depend upon how HMRC expect you to repay the money - was the tax credit a fundamental part of your income?
Regards, Melanie Giles, Insolvency Practitioner
 
 

sheila

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Post by sheila » Sun Jun 27, 2010 4:46 pm
Yes the tax credit was a fundamental part of my income as i work full-time and rent a house,so it helped a great deal.The lady on the phone was very nice and says i can pay it back over a year but i am worried now that they will do more digging from previous years and i will have a hefty bill to pay back.as far as i know i owe them around £530 for the year just gone but i am sure this will get higher when they look at previous years.i dont want to end my iva but i feel i might not have any choice.i know i have to wait until they get in contact but when they do i would like to be repaired so do i tell them i am doing an iva and that i can only afford to pay abit back a month?or condider going bankrupt which might mean i lose my job.sorry for all the questions and thanks for reading.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jun 27, 2010 9:26 pm
I can't see why your IP would want to re-review previous years - if there were additional funds to collect for those periods, they should have spotted this at the time.
Regards, Melanie Giles, Insolvency Practitioner
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