HMRC Advice 31 July 2013 at 5:17PM in Benefits & Tax Credits 5 replies 2.5K views

joyfulrodger

Hi Folks,

I'm looking for some advice for myself and my girlfriend.

My girlfriend was receiving working tax credits up until 2011 as she was studying and her part time job was under a certain amount. HMRC contacted her at some point to tell her that she had been overpaid (presumably based on tax information they had received) and asked her to pay back a certain amount. She phoned them up and arranged a payment plan with them. Up until now she has been paying £5 a week.

My girlfriend is now in permanent employment and has been since early 2012. We moved in together in mid 2011 (this will become relevant later)

She received a letter today informing her that she owed a further £360 and was asked to pay this, and any other debts, off immediately. She phoned them up and explained her current situation and whoever she was speaking to informed that, as her siutation had now changed (full time employee, living with me), that she would be required to pay off the money, currently standing at £1600, in two installments of £800. They are basing that on the fact that she has a higher income (still extremely modest) and the fact that I would be able to pay some of it as well. The lady who my girlfriend was talking to seemed to think that this was a reasonable amount but we can't afford to pay off that much, even between ourselves.

I have a number of issues with this.

1. Why would the fact that we're living together have any relevance here? This is her tax issue and should be based on her personal situation.

2. They are just sending out figures that she has to pay without any form of calculations. How can we verify that this is in fact correct?

3. We cannot afford this amount of money. How can we get HMRC to agree to a more flexible payment plan?

Thanks in advance for any help. Any advice that we could get would be greatly appreciated!

sovilla

When you moved in together she should have informed tax credits, they would have then closed her claim and setup a joint one. If your earning more then the threashold then you would not be entitled to tax credits therefore any money she has received while you were living there would need to be paid back.

When you are a couple living together you are suppose to support each other, your finances are linked and all claims need to be joint.

joyfulrodger

Sorry if I wasn't clear enough but the tax credits stopped being paid before we moved in together. Does that change anything?

Icequeen99

joyfulrodger wrote: »

Hi Folks,

I'm looking for some advice for myself and my girlfriend.

My girlfriend was receiving working tax credits up until 2011 as she was studying and her part time job was under a certain amount. HMRC contacted her at some point to tell her that she had been overpaid (presumably based on tax information they had received) and asked her to pay back a certain amount. She phoned them up and arranged a payment plan with them. Up until now she has been paying £5 a week.

My girlfriend is now in permanent employment and has been since early 2012. We moved in together in mid 2011 (this will become relevant later)

She received a letter today informing her that she owed a further £360 and was asked to pay this, and any other debts, off immediately. She phoned them up and explained her current situation and whoever she was speaking to informed that, as her siutation had now changed (full time employee, living with me), that she would be required to pay off the money, currently standing at £1600, in two installments of £800. They are basing that on the fact that she has a higher income (still extremely modest) and the fact that I would be able to pay some of it as well. The lady who my girlfriend was talking to seemed to think that this was a reasonable amount but we can't afford to pay off that much, even between ourselves.

I have a number of issues with this.

1. Why would the fact that we're living together have any relevance here? This is her tax issue and should be based on her personal situation.

2. They are just sending out figures that she has to pay without any form of calculations. How can we verify that this is in fact correct?

3. We cannot afford this amount of money. How can we get HMRC to agree to a more flexible payment plan?

Thanks in advance for any help. Any advice that we could get would be greatly appreciated!

Ring up and speak to someone else. Ask to repay over 12 months, normally that is their default. If you need it over longer then you will need to try and justify it based on income/expenditure.

IQ

joyfulrodger

I was wondering if my girlfriend could say that I refused to pay as it is her tax bill would that have any impact on the repayments?

P.S I'm not a bad boyfriend! She needs these repayments to be more reasonable

System

It's not a question of you paying back any of your girlfriends debt. It is assumed that with the 2 of you living together you would share the household bills and as such her disposable income after deducting her half of the bills would be greater that if she shouldered all the bills as a single person living on her own.

She can negotiate with them and pay back over a longer period. They may ask her to complete an income and expenditure form before agreeing a payment plan.
She needs to be aware though that if they don't reach agreement they can collect it as an "Outstanding Debt Restriction" via the tax code applied to her employment.