Trying to get it right and still getting it wrong

Conker2008

After spending some time on benefits my partner and myself have been slowly dogging ourselves out of the situation and all was working well.

Over the last couple of years my partner finished her nursing degree course and is now in full time employment and I secured a job last year that is slowly but surely getting better, with full time hours etc.

This has meant we have been able to scrap any benefits that we were on and are now fully supporting ourselves financially. Although this is not easy and to be honest there are some days we feel we would be financially better off by sitting back and signing on our moral compass is telling us that we are far better off supporting our family together.

Now comes the kicks in the face, last year we were landed with a housing benefit overpayment bill for over 4k that we have managed through lengthy negotiation to repay over 4 years so at least some light there

As said life is still hard, were currently trying to negotiate payments on missed council tax for last year and other bills are being paid at the red reminder but things are getting better.

We are also getting married next month, not a lavish affair by any stretch of the imagination as its a quick registry office do folled by a meal with close family, as this is all we can afford.

The last booting we received was today, now the HMRC are demanding £1300 apparently overpaid tax credits and they are demanding this payment in 20 days time, in FULL!!!

Now for the advice bit, there is absolutely no option on the letter to make application for manageable payments and to be honest even these will be difficult whilst paying off the housing benefit.

Are there any payment options they will accept if I write to them / phone them , guess writing would be better as would have a full record of correspondence? Can I appeal the amount due to hardship ? and are they likely to apply for CCJ due to this as this would cripple us as a family that are finally trying to get on track?

Any advice you guys can offer will be greatly appreciated, thanks in advance..

Sncjw

Did you apply for reduced council tax due to your partner being a nursing student at all

tazwhoever

Someone with more knowledge can answer your question, but you should let the benefit people know the changes that occurred. HB and HMRC are huge amounts!

Conker2008

Whilst she was on the degree course I was a house husband so the council tax was covered with CT benefit (which was overpaid also but now at least that's one clear)

As for huge amounts, tell me about it, its now causing stress and arguments between us at a time we should be looking forward to our wedding, that ive just been informed by my s o isn't going ahead (hoping that's a knee jerk reaction)

tomtontom

Have you asked for a breakdown of the overpayment, do you agree that you owe it? The same for the HB.

HMRC will allow you to make a repayment arrangement, have you called them?

Darksparkle

The letters must have changed, there was always mention of calling them to discuss repayment on the notice to pay letters.

Call them and discuss. They aren't the best at answering letters.

You can't appeal on hardship grounds. if you have income/assets they won't accept that you can never pay off the debt.

Also appeals are for if you think they've made the wrong decision. If the decision is right but you don't think it's your error then you could dispute it.

It depends when the overpayment is for, why it occurred, when you were originally notified.

kimplus8

If it is an overpayment because you haven't informed them of a change of circumstances then you can ask for a repayment plan and they may allow it, if it's because they have not calculated your payment correctly then you can also ask for a repayment plan but they may well adjust your current tax credit award and pay you slightly less each month iyswim or you can ask for a repayment plan.

xylophone

dogging ourselves out of the situation and all was working well.

Um....:)

First check the calculation.

Then as Darksparkle suggests, ring HMRC (very early in the morning, a little time before they are officially open seems best) and explain your situation - above all, do not just ignore the letter.

As for huge amounts, tell me about it, its now causing stress and arguments between us at a time we should be looking forward to our wedding, that ive just been informed by my s o isn't going ahead (hoping that's a knee jerk reaction)

Wed or unwed, the repayments will still have to be made - might as well be wed....:)

Conker2008

Thanks all, the overpayment is due to the declaration made last year when gave income etc for the following year, now they have re-examined due to tax paid/earnings and have deduced we are not eligible anymore for the wftc element, only ctc and since not getting an award from now they cant recover by reducing the amounts.

If I had realised this sooner I would have simply asked them to cancel the claim but was lead to believe that payments would self calculate due to taxable income since I hade provided all the information I could when commencing employment.

Agreed I am planning on giving them a call in the morning, just wanted a heads up on what sort of reasonable offers they may accept so I'm forearmed before making the call.

Darksparkle

http://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/#Time%20to%20pay%20arrangements

Conker2008

Thanks for all your help again, especially the link above. It helped me negotiate a payment plan over 4 years so takes the pressure off.

Heres looking forward to being totally debt free within 5 years