Tax Credit Overpayment - Paying It Back....

caley9402

Hi, wondering if someone can help me. Myself and my partner have recently been collared with a notice of overpayment dating back to 2012. I disputed the overpayment but was told it stands. It is now in the hands of a debt collection agency, who are telling me that I have pay it back over a period of three months. The amount is just under £900, there is no way I can afford to pay back £300 a month. I always thought these companies had to accept any repayment offer you made, as long as you show willing to pay it back.

Can anyone help?

Thanks

charlotte4940

Hi, we have an over payment and we are paying it back at £35 a month. I rang the hmrc overpayment line and told them thats all we could afford at present and they accepted. Have you tried ringing them? If you don't have the money they cant expect you to pay it back. stand your ground and offer them what you can afford.

caley9402

Hi, sorry for the late reply,

The company in question (Advantis) are dreadful! They have now sent me a second letter, with an "Income & Expenditure" form in with it! They want me to tell them all of my incomings and outgoings for the month so they can make an informed decision on what I can afford to pay them back! Surely I don't have to provide this information? My other half tried calling them today to arrange a payment scheme, and they were asking him stupid questions like, "What lifestyle changes do you plan to make to enable you to pay off the debt quicker?" - yes really! He was basically told that unless we send them the income expenditure form they were not prepared to discuss it with him and then put the phone down on him!

This is ridiculous, we are trying to pay off this debt and if I could I'd pay it off in one go (if I had that kind of money I'd never have claimed tax credits in the first place) but I'm not in a position to do that. This company are acting like modern day loan sharks, threatening us until they get what they want. I'm really at a loss on what to do next. I really don't want to fill in their stupid form for two reasons, 1 - because I don't want a complete stranger knowing my financial business, and 2 - it's got absolutely nothing to do with them!

Any advice would be very much appreciated!

TIA x

airliner

You can pay by standing order or make an online payment without providing financial details.

Advantis have no power to enforce the recovery so they will demand excessive amounts in order to recover the money quicker.

Just pay what you can reasonably afford and if Advantis don't like it they will return it to the HMRC. You will be notified about this and you can then make payments to HMRC.

Alternatively, ignore Advantis but set aside what you would be paying them and when it is returned to the HMRC you can start a payment plan with a lump sum.

caley9402

Thanks airliner, but won't ignoring them just bring them knocking on my door?

caley9402

Thanks blondebubbles, in this instance they are asking for way more than we can afford. I'm a little offended by this form though, my financial situation is absolutely no concern of theirs. But like you say, if they see it in black and white it might get them off my back a bit.

I know one thing, I will never EVER fill in another tax credits form again! )

airliner

caley9402 wrote: »

Thanks airliner, but won't ignoring them just bring them knocking on my door?

Nope, they have no power to enforce the recovery of the debt.
They are not bailiffs.

All you have to do is pay what you can reasonably afford.

salfordgirl

Use it to your advantage, fill in the income and expenditure form detailing exactly what you can afford to pay back. If they can see in black and white you cant afford much they are more likely to take whatever payments you can afford.

Yes you think its none of their business, but to them it is, it's them you owe money to, they say you owe so much so want to see how you can repay it

Icequeen99

airliner wrote: »

Nope, they have no power to enforce the recovery of the debt.
They are not bailiffs.

All you have to do is pay what you can reasonably afford.

But the debt can be passed back to HMRC who can use distraint (bailiffs).

The debt collection agencies should follow HMRC's guidelines (when they are collecting on HMRC's behalf) and that includes reasonable time to pay. Give them your income and expenditure and make an offer. Tell them that you will be making a complaint that they are not following HMRC's guidelines.

IQ

Annie007

I think that it is worth bearing in mind, that you owe this money, and the sooner you repay it the less stressed you will feel. You need to remain in control of what is happening, but you must work with them. If you are in genuine hardship, then completing the forms will only serve to help and will demonstrate your current financial difficulty.

If HMRC decide to take this debt back and take you to court, you could well be forced by a judge to declare this information, so why put yourself through the stress??

My advice to you, complete the forms, take account of every possible financial eventuality and return them. You can also ask for your account to be reviewed every year to ensure that you are paying back what you can afford.

You are right not to ignore as the tax man never goes away.....

I wish you all the best....BTW - I too am paying back an overpayment, so I understand how you feel.