Tax Credits Overpayment of £30k

Legacy_user

Good afternoon everyone,

I came home yesterday to a brown envelope from HMRC containing a letter (Notice To Pay TC610) for a tax credits overpayment of £29,369.66. This is for 4 years (2011 - 2014).

I have spoken to them today and they need to me complete an income and expenditure form to work out how much disposable income I have each month.

They have already reduced my current tax credits payments by 25%.

Can anyone offer any advice on how much they will be expecting me to pay each month? They were not very helpful on the phone. I am already struggling to live each month and I have no idea how (despite a mini meltdown yesterday) I have got out of bed this morning knowing I have this to deal with.

Any advice would be very much appreciated.

Thank you,
Luna

sourcrates

Luna_Lou wrote: »

Good afternoon everyone,

I came home yesterday to a brown envelope from HMRC containing a letter (Notice To Pay TC610) for a tax credits overpayment of £29,369.66. This is for 4 years (2011 - 2014).

I have spoken to them today and they need to me complete an income and expenditure form to work out how much disposable income I have each month.

They have already reduced my current tax credits payments by 25%.

Can anyone offer any advice on how much they will be expecting me to pay each month? They were not very helpful on the phone. I am already struggling to live each month and I have no idea how (despite a mini meltdown yesterday) I have got out of bed this morning knowing I have this to deal with.

Any advice would be very much appreciated.

Thank you,
Luna

HMRC have a particular process which is followed, and you are expected to repay according to your financial circumstances over a period not exceeding 10 years :

https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/

Just make sure you budget correctly, you wont be asked to pay anything your budget says you cant afford.

National_Debtline

Hi Luna,


It can be worrying when something like this lands on your doorstep and it is important to get full advice about the options. Is this the first you had heard of this overpayment? (You mention your tax credits had already been reduced by 25%, and I wonder if that was in relation to this overpayment or another issue)?


It is quite a sizeable overpayment and over quite a few years, do they say what the reason for the debt is? Sometimes this can affect how aggressively the overpayment is recovered. If you think it is wrong you may be able to raise a dispute with them and that is certainly worth getting some advice on before jumping into repayments.


I would also suggest doing a SOA and posting it so that other posters can try and help you further. Good luck,


Laura
@natdebtline

Amber4

Did you get this sorted ?