full and final settlement

stayathome_2

• I have been advised by CAB advisor to make a Full and Final settlement payment tax credit overpayment for 2004/5 (£6,357)and 2005/6(£4,202). The overpayments arose as during my partner and I seperated between December 2004 and January 2006. During this period neither myself or my partner informed HMRC of the change of circumstaces. Upon completing the annual declaration we were informed of the overpayment. During this time period my partner also accured debts of approx £9000.

We have been informed that overpayments can not be rclaimed from future adjusting on going award as the continuing award has ended.

Due the strain of this situation we have again agreed to separate to protect our two young children from the constant arguing.My partners parents have offered her a lump sum to attempt to resolve this situation. She has written to HMRC Intremediaries disputes and complaints team 26th May 2010 explaining the fianicial and personnal situation. However, as yet no response has been given. We would like to know if anybody could provide advice/guidance on what action to take,:eek::eek::eek:

[Deleted User]

how much have you offered them as a full and final?
its a shame when an issue like this leads to the break-up of a relationship,after all you know its not the end of the world its only money.

stayathome_2

can anyone please advise on what steps to take in offering HMRC a Full and Final Settlement for Tax credit overpayment?:mad:

dmg24

You asked the same question last night?

stayathome_2

Cab advisor spoke to the HMRC advisor who said they had not recieved the letter from my partner enqiring about the possibility of a Full and Final Settlement. Also being dealt with by the London office now.

Therefore no figure offered as yet, as not yet had a relpy from HMRC from the letter explaining our current situation.

Any advice? Do you know wheter this is possible?

[Deleted User]

Ok I suspect its not,after all its money youve had that you werent entitled to.So why would they settle for less than they are owed when they can in fact persue you to the end of time to get it ALL back?

Oldernotwiser

Are you being prosecuted as well as having to pay this money back?

welshmoneylover

I'd be very surprised if HMRC would accept a lower sum in full and final settlement when they can have the whole lot back.

It's hardly a CC company and with the new government regime coming in, they need the money back to pay for labour's risky financial spending.

tinkerbell28

Well from my experience and I am not talking tax credits, I am talking a dodgy employer avoiding tax, the tax man or HMRC don't do bargains and pay offs and will chase you until the end and won't let up?

Why would they I am supsrised you have not been prosecuted for benefit fraud tbh, that's a long time to not tell them seems deliberate, no sympathy here.

stayathome_2

thanks for the advice, if as you envisage they do not agree to take the Full and Final settlement proposal.

Once an agreed figure of repayment is calculated how often is this reviewed by the HMRC ?

welshmoneylover

• She has written to HMRC Intremediaries disputes and complaints team 26th May 2010 explaining the fianicial and personnal situation. However, as yet no response has been given.

Just for you to be aware HMRC have a huge backlog of letters that need sorting through. IIRC the backlog is at least 3 months! If I'm wrong perhaps someone can correct me.