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Wilfieboy

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Post by Wilfieboy » Fri Jan 11, 2019 6:25 pm
Hi
I would really appreciate some advice please. We've been on a very long and stressful IVA (started 2010 and finished August 2018). - length due to amount we initially owed (approx 80k due to partner's ex-wife and her zealous maintenance claims) and a review we had 3 years in when my mother died and we lost benefits and all her lovely help (she had had a stroke and we moved her in to look after her). With 2 young children and an allowance of approx. £470 per month to live on, it's been a very hard few years. We''ve just received letters about the child maintenance high income charge. My husband is a high earner (35k for his job and 21k for a professional pension as he was injured out of his career). Obviously this was, including the child benefit payment of £137 per month, all factored into the IVA. We''ve just gone through the government wizard calculator on whether we have to pay the highincome charge and it basically says that for the year 2017 -18 , out of the 1700 we received, we have to pay 1400 back. We're shocked and terrified as this could be backdated to 2012 but we've never benefitted from any of these payments and our IVA administrator never warned us to stop receiving these payments and take them off of our annual income and expenditure. We certainly can't pay £1400 by the end of the month - we're still recovering from the IVA and unable to get credit as we haven't been formally been written off yet. Please could someone help us with what we should do. Thanks so much

Foggy

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Post by Foggy » Fri Jan 11, 2019 7:12 pm
Has this actually been demanded -- or was this an online calculator ? Hopefully you will be able to negotiate a payment plan.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

luluj

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Post by luluj » Sat Jan 12, 2019 7:35 am
I would wait for the official request then negotiate a payment plan with them.

Don't act on a website projection ..they are often very wrong
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Wilfieboy

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Joined: Fri Jan 11, 2019 5:40 pm

Post by Wilfieboy » Sat Jan 12, 2019 10:57 am
Foggy wrote:
Has this actually been demanded -- or was this an online calculator ? Hopefully you will be able to negotiate a payment plan.
Hi Foggy
Thanks so much for getting back to me. We've had 2 letters, the second one received last week as a 'Final reminder' - asking us '...do you have to pay the High Income Child Benefit Charge for 2017 - 18?' They ask whether myself or partner have taxable income of over £50k in a tax year and if we receive child benefit payments. if the answer is 'yes' to both, 'the person with the highest income must sign up for Self Assessment straightaway. Once they have done this, they must also file their tax return and pay the charge by 31st January 2019.'
The thing is, they obviously know that we exceed the earning limit [it's my partner's pension that takes him over] but my partner's income has not increased greatly over the last 8 years or so, so they could take the view that we've always been over the limit [reading about it now, this charge seems to have come in in 2012]. Could they back date this 7 years? To be honest, I was aware of changes to the Child Benefit allowance, but I'd got it in my head it was over 60K - at any rate, we'd assumed that if we weren't entitled to something, then we'd be written to and told we weren't entitled [as they did with our working tax credits several years ago]. it almost seems like enticement to defraud - why give it to you and then tell you that you've got to give it all back at the end of the year? When we recently received these letters, we thought we might have to pay a nominal fee or small fine for being over the threshold - we had no idea that we weren't entitled to anything more than £200-£300 per year and that we'd have to pay all of the rest back. I know it's no excuse, but you know what it's like when you're on an IVA [particularly one that lasted 8 years] - we just had our heads down, trying to get to the end. The living allowance of £470 was insufficient, but it's all we could allow ourselves to get onto the IVA in the first place, so we had to make it work. The child benefit was accounted for in the annual review every year and there was no warning or advice from Aperture to remind us to check our child benefit entitlement. After struggling to get to the end, we still haven't received our certificate or any official recognition that we have successfully completed the IVA [just completed one final income and expenditure, to make sure there wasn't anything else they were entitled to] we're simply relieved to have finished paying. We anticipate it will still be a long time before we are credit worthy again, and we are just trying to work on our mortgage arrears and paying back family members who have helped to provide essentials for the children, when we haven't been able to. We're still not in any financial shape to be paying £1400 by 31st January, so we'll probably get a late payment charge. Do you know if they offer payment terms, because if they backdate this, it could add up to over £9000. Do you think they might take into account the fact that we've been locked into an IVA and we weren't really benefitting from the money - it just all went into the IVA pot.
Thanks so much for any thoughts you might have on this.

Foggy

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Post by Foggy » Sat Jan 12, 2019 11:30 am
HMRC do often negotiate payment plans and your recent trials and tribulations should be taken into account. They are not always the ogres people often paint them as, as long as you are straight with them and non-confrontational. If they do agree a plan, be realisitic with your figures, as they do not tolerate failure to stick to it if you cut it too close.

I am afraid that it isn't really in Aperture's remit to be advising on tax and they will take the position that you should be seeking independent, qualified advice on these matters.

For what it is worth I have heard many stories of people generally, not just in debt solutions, being caught out by this change in Tax regulations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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