We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
HMRC refuse to accept CTC overpayment from me!
Rufman98
Posts: 7 Forumite
Hi all,
Just a quick post to make you chuckle (in despair).
I posted earlier in the year that my wife and I had racked up a CTC overpayment of almost £4000 for the year 2017/18.
Unfortunately as my wife had notified CTC of her increase in hours rather than pay, mid-year, we were in effect responsible for the overpayment and have no grounds for appeal or dispute: fair enough; it sucks, like the entire CTC system, but we've accepted the decision.
So at present I've paid off all unsecured debt and have reduced mortgage to a peppercorn amount; I'm continuing to pay this down as at 2.5% it's more than any savings account. I've calculated that as my wife earns more than £20k per annum, our CTC repayment rate will be 50% for 2019/20 entitlement, around £65 p/w. As a result I planned to voluntarily paydown £600 so, in the event our circumstances don't change in year 2019/20, our overpayment will be completely cleared.
We can live with £65 PW next year as we're getting just £22.50 at present, down from last year's £170 pw.
So I called the CTC's overpayment line to offer the £600 only to be told that's it's not possible! I queried this a number of times during the phonecall; I was told their system can facilitate a CTC overpayment but if you are receiving ANY entitlement there's no method to repay voluntarily because of the risk of 'overpayment'... to THEM!! I even offered a small overpayment by DD, as well as paying the full amount, but no, you cannot repay a CTC overpayment if they are clawing any of it back out of existing entitlement.
I understand there will be forumites who say "why pay it off if they aren't asking for it and it's not accruing interest?" That's a fair point: I agreed with HMRC that I'd put the £600 into the best paying savings account I could find, so it's there to pay when I go back into employment and receive a Time to Pay letter.
This aside, it's a matter of principle: if I owe money on a 0% credit card and have the means to pay it off, no credit card company will refuse to accept payment. In addition I'd rather pay it out of savings, when I have it, rather than hard earned salary (we've both savings and an emergency fund). In short it's my goal to be debt free sooner rather than later but HMRC can't facilitate this.
Seems ludicrous to me.
Just a quick post to make you chuckle (in despair).
I posted earlier in the year that my wife and I had racked up a CTC overpayment of almost £4000 for the year 2017/18.
Unfortunately as my wife had notified CTC of her increase in hours rather than pay, mid-year, we were in effect responsible for the overpayment and have no grounds for appeal or dispute: fair enough; it sucks, like the entire CTC system, but we've accepted the decision.
So at present I've paid off all unsecured debt and have reduced mortgage to a peppercorn amount; I'm continuing to pay this down as at 2.5% it's more than any savings account. I've calculated that as my wife earns more than £20k per annum, our CTC repayment rate will be 50% for 2019/20 entitlement, around £65 p/w. As a result I planned to voluntarily paydown £600 so, in the event our circumstances don't change in year 2019/20, our overpayment will be completely cleared.
We can live with £65 PW next year as we're getting just £22.50 at present, down from last year's £170 pw.
So I called the CTC's overpayment line to offer the £600 only to be told that's it's not possible! I queried this a number of times during the phonecall; I was told their system can facilitate a CTC overpayment but if you are receiving ANY entitlement there's no method to repay voluntarily because of the risk of 'overpayment'... to THEM!! I even offered a small overpayment by DD, as well as paying the full amount, but no, you cannot repay a CTC overpayment if they are clawing any of it back out of existing entitlement.
I understand there will be forumites who say "why pay it off if they aren't asking for it and it's not accruing interest?" That's a fair point: I agreed with HMRC that I'd put the £600 into the best paying savings account I could find, so it's there to pay when I go back into employment and receive a Time to Pay letter.
This aside, it's a matter of principle: if I owe money on a 0% credit card and have the means to pay it off, no credit card company will refuse to accept payment. In addition I'd rather pay it out of savings, when I have it, rather than hard earned salary (we've both savings and an emergency fund). In short it's my goal to be debt free sooner rather than later but HMRC can't facilitate this.
Seems ludicrous to me.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards