Repaying overpaid tax credits

Sortitout_3

My husband is self-employed & I am employed. During the last year he unexpectedly made quite a big profit and that means that we have been overpaid about £3000 in tax credits. The trouble is that he is in an IVA so that despite this profit, our income is limited to what we need to live on and the rest of it goes to repay the creditors (we cannot use it for any other purpose). We had no Tax credit overpayment at the time of the IVA so could not have included it.
Does anyone have a clue as to how the Tax credit people will view this? I am happy to repay it over time but at the moment have no spare funds at all until the IVA finishes in 3 years.

Sortitout_3

Any ideas on this anyone?

[Deleted User]

Are you still claiming tax credits? If so they will deduct it from what they are paying you so although you will lose money you wont have to directly pay it out.

Sortitout_3

I asked them to stop paying anything last July as I anticipated a reasonable profit 09/10 (my husband had had 2 previous years of losses - hence the IVA & the tax credit overpayment). However the profit turned out much better than expected which has put us above the threshold to receive any tax credits which would be great were it not for the IVA restricting any access by him to the profit above a basic living allowance. Do you think the tax credit people might accept a very small monthly repayment until he is free from the restrictions of the IVA at which point (assuming his business is still doing well) we can repay the rest in full?

[Deleted User]

They may but they will expect you to ask for this, sending a full statement of income & outgoings with proof of outgoings, which I assume you will have anyway if you have an IVA. Have they sent you a bill yet? Usually you will get a bill or award notice from them showing what you owe giving you about 30 days to appeal or ask them to consider lower payments.

Sortitout_3

They have not sent a bill or anything yet, I am just anticipating that they will calculate that we have been overpaid.
Yes, we have a detailed income & expenditure for the IVA (a little out of date now). I guess I will wait for the 'award notice'/bill & give them a call. In my experience with the IVA/creditors etc etc. as long as you are repaying regular reasonable amounts (even if it is less than they might like) and give a pretty good explanation of why, they usually leave you pretty much alone.