child tax and payments

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Francesca
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by Francesca » Fri Aug 18, 2017 4:01 pm
Hi. Hope you are all well. Got a question about what might happen in the future. At the moment I am receiving a child tax credit because we are both on a low income and our baby age 2 attends the nursery. Thanks to that we got some spare money each month (at the moment using it to pay back family member). What happens if CF decide to put up my monthly payment in January because of spare we got, but then in march our child tax goes down from 48 to 18 (got the letter saying about it)? We will struggle. Thank youuuu
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Foggy
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by Foggy » Fri Aug 18, 2017 5:12 pm
The child tax credit should be counted as income on your I&E, which will be more than offset by the actual child care costs in your allowances. When CTC reduces you should ask for a review to get your disposable income reduced also. At the moment you appear to be enjoying an undisclosed income, which could put the IVA at risk if discovered. Also paying back a loan from a family member is a big no no and, again, a potential breach of your arrangement.
Francesca
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Joined: Thu Dec 15, 2016 6:31 pm
by Francesca » Fri Aug 18, 2017 5:52 pm
When i started IVA i had part time contract. Then after 2 months been given full time (thats why had to put my baby at the nursery). I called Cf straight after all changes happened but they said we will sort it out at the review. Does it mean any spare I should pay to them anyway??
And also money borrowed from family went to pay tax while my husband being self employed. When we got rebate asked Cf if we can use some of it to pay them back but they never got back to us. Why paying them back is a problem??
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Foggy
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by Foggy » Fri Aug 18, 2017 6:51 pm
Regarding the CTC, if CF was told you have done your bit. I assume they are treatimg it the same way as a payrise, which will be accounted for after the review (if it is still being paid at that time).

Paying back a relative is a possible breach as you are, effectively, favouring one creditor over the others, which is against the spirit of the arrangement. Your relative should either be included in the IVA or defer repayment until after the IVA has concluded.
Francesca
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Joined: Thu Dec 15, 2016 6:31 pm
by Francesca » Fri Aug 18, 2017 7:00 pm
Thank you so much Foggy. Just one more thing. Tax been paid while on IVA already so they kind of aren't our debtor when we started IVA. We knew it will be paid back to us as we knew its a mistake. Just hoped Cf will cooperate with paying back my in laws
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Michael Peoples
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by Michael Peoples » Mon Aug 21, 2017 11:58 am
If there was tax overpaid post IVA and this was an error then the money should go back to you. You can then repay the money borrowed and that should be that.
Francesca
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Joined: Thu Dec 15, 2016 6:31 pm
by Francesca » Mon Aug 21, 2017 8:06 pm
Michael Peoples wrote:
If there was tax overpaid post IVA and this was an error then the money should go back to you. You can then repay the money borrowed and that should be that.

Thank you Michael. I know i asked already. Took ages to hear anything from Cf. Decided to contact my IP directly and as we hoped they let us keep some of the tax rebate to pay back family.
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Michael Peoples
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by Michael Peoples » Tue Aug 22, 2017 7:57 am
Glad to hear that and a good decision by your IP. It is certainly worth contacting the IP directly as ultimately they can make the final decision.
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