Overpaid tax credit. Help please!!

GaryBC

Hi guys

My wife and I have been on a debt management plan brokered through Paylan for a few years now - and it's sort of cruising along ok.

But we've subsequently found out that we've been paid too much tax credit (in spite of us repeatedly telling them so, and them ignoring us and paying it anyway) and they want it back. And it ain't a small sum!!

How's the best way of playing this one? Obviously we don't have the lump sum lying around and neither do we have any spare monthly cash. I've heard somewhere that overpaid benefit is included in the category of what can be included in a debt management plan so my question is: how do we achieve this? Do we tell HMRC that they have to contact Payplan? Do we tell Payplan that HMRC now want a slice of the meagre monthly payments we're making? I guess both eventually; but I'm not sure how to.

If we had the money we'd simply pay it. If we could generate some monthly spare we'd pay it that way. But we have neither.

Any guidance on the best way to play this one would be appreciated.

Cheers all,
Gaz

beanielou

Speak to Payplan in the first instance and see if it can be included.

GaryBC

Are there not rules covering what can be, and what can't be included in a DMP?

bonsibabe

I would write a very stern letter to the tax credits folk, informing them that they have been informed of their errors on numerous occasions and instruct them that you want the overpayment looked at again as it is clearly their fault. In the letter request that they write the debt off as an "official error" and make sure that they get your payments right. Good luck

GaryBC

bonsibabe wrote: »

I would write a very stern letter to the tax credits folk, informing them that they have been informed of their errors on numerous occasions and instruct them that you want the overpayment looked at again as it is clearly their fault. In the letter request that they write the debt off as an "official error" and make sure that they get your payments right. Good luck

Tried that. Been trying it for over 18 months. They won't accept its their fault - insisting that we didn't work hard enough to correct them (even though we didn't even know we had to)!

chanz4

if you we aware of the over paid money, why wasnt it put to one side? You wont get anywhere with tax credit complaints they are idiots

Oh_Dear

I had several overpayments over several years with tax credits. Some amounts were written off however I still owed in excess of £4000 in 2009. At the time I was on benefits and offered them £3/mth which they accepted, my final payment was to be in April 2124!

However I have since started work and entered a DMP. They are currently being offered £5/mth from ccc's however as the months go by this will increase and they will have had all there money via my DMP within 4 years, 109 years ealier than they were expecting.

So yes you can include it in your DMP, along with DWP over payments and crisis loans. Benefit overpayments are accepted as I also have payment going for an overpayment of housing benefit from DMP. The only thing they wouldn't include was council tax arrrears. However overpayment of C.Tax benefit can be included.

Geordie.