IVA - HMRC Tax Credit Overpayment?

EllieBelly

Hi all,

I received quite a significant overpayment off the HMRC and am slowly paying it back at £50 p/m - if I were to get an IVA (in a total of c£30K debt overall), does anyone know if this debt would be included?

Many thanks

ami66

When we started our IVA an overpayment of tax credits was included and so that overpayment was no longer part of any calculations made for future tax credit payments.

We've since had yet another overpayment due to circumstances beyond our control but HMRC don't agree. This can't be included so we are paying back at £10 a month and will take about 6 years to clear!

DorisTrousers

If you are still receiving Tax Credits then as soon as HMRC receive notification of an IVA proposal they will deduct from the award and vote against. Strictly speaking they are not allowed to do this, but they do it anyway.

If you are no longer receiving an award, then they will treat each case on its own merits.