Tax credit repayments

Momofthree_2

Once they receive notification re DRO they SHOULD stop repayments. Clearly mine havent so i just phoned, asked OR to send a new letter and put in a formal complaint. Hopefully i can let you know outcome soon ��

Momofthree_2

UPDATE

The tax credits complaint team called me this morning to tell me I am correct, my full payments are being reinstated with immediate effect & they have issued a manual payment refunding my paynents since BR date, due within a few working days.

Hopefully this is the final t crossed & i dotted for me now. Thanks for advice all :beer:

L

luvchocolate

That is great news, such a relief to get it sorted.

debt_doctor

Good news, well done.

DD

Momofthree_2

May have spoken to quickly....

Tax credits have just called me again to say that as of husbands discharge date (18th April 2019) they will be reinstating the overpayment repayments out of our tax credits.

They said tax credits are not included in the rule of 'writing off' debts after BR and only suspend overpayment recovery during the first 12 months.

Going to call husbands OR today but im back at square 1. Im gutted to have to do this all over again.

Im fairly confident i am right but they claim they have got this info from official receivers office. Please can anyone shed any light?

*just to confirm no overpayment is due to fraudulent claims.

Thanks
L

Clouds88

Ugh why are they being so difficult of course they are written off.

I am BR and didn’t have this much hassle getting my payments stopped, I’m feeling another complaint and claim for compensation for distress it is causing you.

Try to google the tax credits recovery hand book, I’ve managed to access their T and C’s before and it has stated that they are written off ?!

Clouds88

https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0224040

sourcrates

Tax credit overpayments are witten off in a DRO.


The same applies to bankrupcy as well.


I suspect that HMRC are getting there wires crossed at some point.


Can i just ask, was it a joint claim or just in one persons name, as if it was a joint claim, the other person, who did not go bankrupt, would still be liable for the full amount of the over payment.


I know you both went bankrupt, but that point may of been missed by HMRC.

Momofthree_2

Thanks clouds. I have had a look through but got a bit lost as there wasnt an option that i could see for 2 parties on the same claim both going BR. I assume its because it became a single person when husband declared BR.

Thanks sourcrates. I agree HMRC have their wires crossed however, and quite concerningly, the OR office is in agreement and ive had to email all my tax credit info over which clearly states the overpayment was for us both up until 5th april 2018. Husband went br on 16th april 2018. I continued repayments til I went br in feb this year.

Im slowly losing the will and becoming quite upset and confused. If its not gone and i have to repay, what was the point of going BR?! will the same come from other joint things... barlcays overdraft, council tax arrears. Im fed up

Thanks both
L x

Momofthree_2

To be included it needs to meet three criteria. Firstly, the overpayment needs to have occurred prior to the date of the order. Secondly, you would have needed to be informed of the overpayment prior to the order date and thirdly, HMRC would need to have sought recovery prior to Mr **** order date for it to be included in his bankruptcy.

As the overpayment was incurred up to April 2018 it is unlikely that the debt meets the above requirements. However, as you have been notified and have made repayments, the debt will be provable in your bankruptcy.

As the award is joint, the bankruptcy order simply means that you cannot be pursued for the debt but they will be able to pursue Mr **** for the repayment.

This is what i have just received. We were repaying before husbands BR. We did know before husbands BR date. It was incurred before husbands BR date.

Please help, does anyone know how to contact debt doctor directly (sorry im quite new!)

A very pi**ed off
L