Working Tax credit debt & Time To Pay options

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My working tax credit debt has now been sent to Debt Management & Banking DMB within the HMRC. I have avoided dealing with this for a year or two but they have now issued me with another letter.

Unfortunately this is a case where I've buried my head in the sand for various reasons which I won't go into here. One being I originally believed I would have to pay the outstanding amount immediately otherwise the debt would be transferred to a debt collection agency. That was firmly the impression I got whenever I phoned them.

75% of the debt I do owe but since the appeal/dispute period is well gone I now accept I will have to pay back the full amount which I'm prepared to do.

Having tonight read through guidance on WTC debt on the revenue benefits website which may be now a bit dated I have the following questions.


Do the 'Time to Pay' options still exist?

The options seem to be:
immediate payment
12 monthly installments or up to 10 years



Both options exist without requirement to provide full income and expenditure details. If I had know this was available I would have taken them up on it but it was never offered which really makes me angry.

Comments

  • skateykatey
    skateykatey Posts: 226 Forumite
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    Time to pay options still exist. As far as I'm aware though you will need to provide details of your income and expenditure. Although I believe this can be done over the telephone.

    How much is the overpayment?

    I'm very surprised that DMB have never mentioned this; in the nature of my work I've had cause to listen to many recordings of their telephone calls and they've always mentioned it as an option. After all, they want the money back and realise that folk don't have access to large sums of cash to make a one off repayment.
  • dori2o
    dori2o Posts: 8,150 Forumite
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    OP, are you working and earning over the tax free allowance (£10600)?

    The reason I ask is that HMRC can, and do, transfer the debt internally within HMRC and arrange for it to be collected directly from your wages by way of a restriction to your tax code should you continue to not arrange repayment of the debt. You have no control over this if it happens and they will look to recover the full amount over 12 months.

    You need to contact them and arrange a TTP agreement. They will ask for I and E and they will expect a reasonable rate of repayment depending on the income available based on the I and E.

    Just because they can offer upto 10 years to repay does not mean they are obliged to. Their obligation is to collect the outstanding balance as quickly and as fairly as possible.
    [SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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  • Guss
    Guss Posts: 117 Forumite
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    I am earning under the tax code and my debt amount is £900 so was looking to pay back over a period of 2-3 years which I can just about manage.

    Thanks to everyone who has replied you have really put my mind to rest and I will be calling them today to sort out a repayment. :beer:
  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
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    Have they sent a bill ?
    An actual demand or a "statement of account" and request for payment.
    I do Contracts, all day every day.
  • Guss
    Guss Posts: 117 Forumite
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    I've been sent a IDMS 99P letter with a statement of liability on the reverse. In the letter they say they may be able to give me more time to pay but no mention of a 12 month repayment plan or longer.

    I'm still trying to get through to them on the phone :(
  • Guss
    Guss Posts: 117 Forumite
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    Job done, repayment plan in place. Experience today was very different when I dealt with them in the past when i was definitely left with the impression it was either pay it now or it goes to a debt collector.
  • Souri83
    Souri83 Posts: 2 Newbie
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    Have they sent a bill ?
    An actual demand or a "statement of account" and request for payment.


    Hi,

    I'm hoping somebody would be able to help me. Sorry, but I'm new to forums.

    I have just been placed in the support group of ESA and was told that my new entitlement is £186 per week. This means I'm entitled to approximately £1,100 in backdated payment.

    When I called ESA to enquire about the backdated payment, I was told they are cross checking to see if I have ever been overpaid on a benefit.

    My Question is:

    I was overpaid Tax Credits when I was employmed. I have since been diagnosed with a disability and currently receiving ESA and PIP.

    Can ESA/DWP not award me the backdated payment due to an overpayment of Tax Credit when I was previously working?

    Many Thanks in advance to any assistance/replies.
  • Guss
    Guss Posts: 117 Forumite
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    Hi Souri,
    I can't advise you on your backdated payment but advise you to start a new thread to get maximum exposure.

    Your thread is a completely different topic to mine so you will lose out on a lot of helpful people seeing your question.

    :)
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