Tax credits repayment?

Gem1034

Hi,

I am about to fill my forms but I don't know what to do about my tax credits repayment.

I owe £1800 which is currently paid back at £30 month, this is not paid by deducting it from my tax credits but through DD through my bank.

Can I add this to my debts or would I be able to put the repayments onto my SOA? I phoned CCCS but they said it was a bit of a grey area and they didn't know. Has anyone any experience of this or know who I could call?

Thanks for your help,

jenni75

Where overpayments are made before the bankruptcy order, but a decision is made to recover them after the bankruptcy order, then the debt remains after bankruptcy discharge.

In the case where the overpayment is made and recovery sort before the bankruptcy order then debt is included in the bankruptcy. The exception to this is overpayment due to fraud, in which case recovery can by enforced despite bankruptcy, whenever the overpayments were made.

Hope that helps.
Jenni

mr_&_mrs_2

Arh thats interesting can you include overpayments as part of your debt then???

I didnt think we would be able to add this to our BR...

beentheredonethatstilhere

Yes you can add it to your bankruptcy pot.

I have a feeling that if you are in a plan to repay then you continue to do so until you are discharged and then what is left will fall into the bankruptcy pot.

I am sure some one will correct me if I am wrong.

fermi

beentheredonethatstilhere wrote: »

I have a feeling that if you are in a plan to repay then you continue to do so until you are discharged and then what is left will fall into the bankruptcy pot.

Only if they are being deducted from an ongoing entitlement.

If they, like here, are being taken by DD or direct payment then they must stop.

In relation to the recovery of overpaid tax credits falling within category 1 (see paragraph 40.102A), where the final award notice (for repayment) was issued before the date of the bankruptcy order, HM Revenue and Customs (HMRC) state that they will adhere to the following policy:

• Where recovery of the overpaid tax credits was intended to be taken via direct collection rather than from ongoing awards HMRC will submit a proof of debt in the bankruptcy.
• Where recovery of the overpaid tax credits was intended to be taken via ongoing awards, HMRC will continue collection until discharge; no proof of debt will be submitted in the bankruptcy and the balance of the debt will be written off upon discharge.

Should the official receiver be approached by a bankrupt, who objects to the recovery of overpayments by HMRC after the bankruptcy order date, they should be referred to HMRC without further comment by the official receiver.

HMRC will claim set-off in respect of monies it owes to the bankrupt if available [Note 17]. HMRC will also pursue the non-bankrupt claimant where tax credits have been claimed jointly. Where the intended recovery is via direct collection HMRC will also submit a proof of debt in the bankruptcy, but will not recover more that 100p in the £ of its debt; Where the intended recovery is via ongoing awards to the joint claimant, recovery will continue but a proof of debt will not be submitted.

beentheredonethatstilhere

Thank you for that Fermi. Makes a lot of sense.