tax credits overpayment

johnnyl

Without going into the hows and whys I have a friend who has to pay some tax credits back, it was coming out of future tax credits however he no longer qualifies and has to pay himself.

He is on a low wage, so paying 25 - 30/month is a large chunk of his living money however he has been told that this is the minimum that he can pay.

1) Is there a minimum or can he realistically negotiate based on his own circumstances? 5/month take it or leave it and see me in court?

2) If there is a minimum, is it based on the proportion of what is owed. (ie...always based on a 5 year payback)

3) Given that this person has no money, no house what is stopping him saying f*@k this, you cant take what I havent got...sod you Im paying nothing

Thanks for any help

johnnyl

blondebubbles wrote: »

The smallest I've ever seen was £5 per month but this was for someone not working.

Normally when arranging a time to pay they go through an income and expenditure to come up with a realistic payment amount.

Did they do that with him?

Not sure, I havent asked.

Roughly speaking the person works full time on minimum wage and pays back 25-30 a month ish. Does that sound about right?