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Tax Credit - Been Paid Much... help!

Hi Everyone,

New to these forums and I'm looking for some help.

My Wife & I are useless at this sort of stuff and now it's coming back and biting us in the bum.

To cut a long story short, HMRC have now calculated our Tax Credits and we forgot to declare dividends I was paid so our actual household income is a lot higher than what we declared.

As such, we owe some money back and our tax credits will stop.

The issue I have is that we can't afford to pay this amount off upfront, no where near!

Has anyone had this situation or something similar before?

Any advice on what to do would be massively appreciated!

Regards,
Mike

Comments

  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    If your tax credits have stopped completely, the debt will be sent to Debt Management and Banking part of HMRC who will want you to pay it back directly.

    You should do a rough income and expenditure sheet and see what you can afford to offer. If it is up to 10 years, they are normally accepting of an arrangement if it sounds reasonable based on your income/outgoings without too many detail questions. But it really depends on your circumstances - you need to speak to them really.

    IQ
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