Repaying child benefit overpayment

Libbyd

Child benefit was over paid and we received a letter before Christmas saying we owed £3000. We had no idea, I have been chronically ill for 2 years and hubby works full time, 3 children and he cares for me. This just slipped past us without us realising.

HMRC are now saying they expect a lump sum, something we just don't have. Hubby has explained our circumstances and they were not sympathetic. He offered to pay what we could afford each month and they refused.

What can we do? we don't have 3k lying around. We are worried they will juset change his tax code and take a lump sum each month that will leave us in a mess. Can they do this?

Any advice much appreciated.

Libby

Darksparkle

Is the overpayment relating to the High Income Child Benefit Charge? Normally they are willing to set up a time to pay arrangement. Why did they refuse?

Libbyd

Thank you for replying.

They said if we needed to do repayments they'd have to be done over 12 months but we can't afford that each month. So they said it had to be a lump sum if we couldn't pay over 12 months. It's a crazy figure to expect us to pay. WE can't afford £250 a month.

pmlindyloo

Libbyd wrote: »

Thank you for replying.

They said if we needed to do repayments they'd have to be done over 12 months but we can't afford that each month. So they said it had to be a lump sum if we couldn't pay over 12 months. It's a crazy figure to expect us to pay. WE can't afford £250 a month.

Can you please answer Darksparkle's question?

McKneff

Maybe if you did a Statement of Affairs on here we may be able to help you with a budget so that you can afford to pay them back over the year. It seems it is the lesser of 2 evils

Libbyd

pmlindyloo wrote: »

Can you please answer Darksparkle's question?

Yes it is in relation to the higher income threshold.

TELLIT01

As you have a chronic illness have you applied for PIP?

Libbyd

McKneff wrote: »

Maybe if you did a Statement of Affairs on here we may be able to help you with a budget so that you can afford to pay them back over the year. It seems it is the lesser of 2 evils

Thank you

That is something we have done with HMRC and it isn't doable. Sadly. We may be over the 50K threshold, just, but they don't seem to take into account outgoings and our current situation with me unwell.

Libbyd

TELLIT01 wrote: »

As you have a chronic illness have you applied for PIP?

Yes I applied for PIP last summer. I am still awaiting the outcome, it's been such a long drawn out process with them it's been a nightmare and very stressful.

pmlindyloo

Libbyd wrote: »

Thank you

That is something we have done with HMRC and it isn't doable. Sadly. We may be over the 50K threshold, just, but they don't seem to take into account outgoings and our current situation with me unwell.

If your husband is earning over £50K then it appears that you are going to have to do some juggling with your expenditure.

Post on the DebtFree Wannabe forum for some tips. (not just for those with debts)

Darksparkle

How much have you offered? Have you provided them with details of your income and expenditure? Do you have an assets you can use, savings or investments etc.

As above, if you post a statement of affairs on here others may be able to offer you advice to cut back on other outgoings.