backdated tax credits on dro

trillium1986

Hi i am currently on a dro and have just received £1800 in backdated tax credits from before i was on the dro. do i need to do anything and if so how will it affect my dro.
thanks
ben

mynameistallulah

You need to advise the OR. Tax credits are income.

trillium1986

could my dro be revoked because of this

coinxoperated

Yes. But they may just make you equally pay it out to your creditors and then re-instate. Personally, I think you should contact the company who set your DRO up for you and explain the situation. Don't delay!

fatbelly

The DRO Unit do not have the power to enforce payment. That's not what a DRO is about.

If you breach the DRO criteria during the morotorium period, or are later found to not have met the criteria at the outset, your DRO is revoked.

I think Debt Doctor and I have covered this in your other thread. A back payment of benefit is income for the period to which it relates. So if this was income for a period prior to the commencement of the DRO then, although this sounds odd, it doesn't affect the DRO.