Received a direct earning attachment notice but been repaying for over a year??

evenstar2009

I've recently received notice from HMRC that they will be issuing a Direct Earnings Attachment to my employed to recover around £2k for overpayment of tax credits. This relates to an overpayment (that I contested) from over 5 years ago which i have been paying off via a debt management company each month. The last repaying was 1 September 2021 so how can HMRC do this?
I've tried getting hold of HMRC with no joy and when I've asked before for them to clarify how they've calculated their figures i've been told they don't provide that?
Anyone else had this situation? thanks

Alice_Holt

I'd suggest requesting help from your MP to intervene with HMRC /  debt management company to get the figures and try to sort it.

I suspect DWP debt management may also be involved. Both HMRC and DWP debt management can be very difficult to deal with. Try a written complaint letter to both (if DWP DM involved), but you may have a delay before getting a reply. Keep following up and keep all correspondence. 

https://www.litrg.org.uk/tax-guides/tax-basics/enquiries-penalties-appeals-complaints-and-debt/how-do-i-complain-hmrc

https://www.gov.uk/government/organisations/department-for-work-pensions/about/complaints-procedure



You could also try a SAR with HMRC, this may get you the figures:

https://www.gov.uk/guidance/hmrc-subject-access-request


Have you kept a schedule of the payments made and the total debt due?
If not, then create one. Document everything.

tacpot12

I would recommend keep calling them until you get through. The number to call is on the letter from HMRC. 

It sounds like the main thing you need to check is that the amount that they are attaching takes into account the payments that you have already made. They should be able to confirm that payments that they have already received from the debt management company. Be prepared for them to say that they haven't received anything; there is a small chance that the company has made payments with the wrong reference number, so talk to the company as well to check what payments have been made to HMRC. They shold be able to give you a schedule of payments they have made to HMRC. 

It wasn't clear from your post, but it seems like you were saying that the very last payment to clear the entire debt was made on 1st Sept 2021, so 10 days  ago. If you really have cleared the debt, and HMRC have received your payments, then there should be nothing to pay and the DEA should be cancelled. 

The advice to document everything, create your own schedule of payments, and complain to our MP is good advice. 

calcotti

tacpot12 said:..but it seems like you were saying that the very last payment to clear the entire debt was made on 1st Sept 2021, ..

I read it as the most recent payment was made on 1st Sept.

Robbie64

calcotti said:

tacpot12 said:..but it seems like you were saying that the very last payment to clear the entire debt was made on 1st Sept 2021, ..

I read it as the most recent payment was made on 1st Sept.

Same here.

evenstar2009

Thanks all.
I finally got in touch with DWP. In short my child tax credit overpayment (£3k according to them over 3 years) was being handled through HMRC and I was paying it off each month.
Then DWP started dealing with this and so HMRC just cancel the DD. 
DWP didn't send out any info that this was changing over, just the letter saying 'you owe us we're going to do a DEA'. Luckily i've managed to arrange a payment plan with them however it is probably not in time to stop my payroll from applying the DEA.
To add insult to injury, the letter about the DEA was dated 5 Sept, I received it on the 10th and they'd already sent the instruction to my employer to apply the DEA. :-(