Dro and hmrc

Pabs10

Hi, my problem is with hmrc and a dro. Can any one tell me if the wording in a completed dro be amended. HMRC are named on a dro but is worded as VAT and not tax credits. I was wondering if insolvency service can change wording, I am awaiting to hear back from them insolvency service but want to know anyone as had any experience with either HMRC or insolvency service.
Many thanks

Pabs10

Sonic101

Hi there

I am not sure whether you have already had the DRO approved? If yes, it's part of the terms and conditions of the DRO that you notify the OR if you spot any inaccuracies in the information provided, i.e.

"(3) The debtor must notify the official receiver as soon as reasonably practicable if he becomes aware of (a) any error in, or omission from, the information supplied to the official receiver in, or in support of, the application;....."

If you've notified the Insolvency service of the error I don't imagine they'll be any problems. I emailed them recently and got a reply back within two weeks. I've never had the "pleasure" of dealing with HMRC so can't comment on that bit. 

Pabs10

Yes dro was approved in 2018 and Finnished in 2019. HMRC are now chasing me for a debt that qualified but vat was put on dro instead of tax credits. It was only noticed when I changed to u/c.
I have contacted insolvency service who said it is legally binding. but what I have read on this forum so far, HMRC can be very awkward.

fatbelly

When you got your DRO you would have received your Debtor's Notice containing the list of debts. HMRC would have received their Creditor's Notice containing the same list.

The list has very little information on it - less than the info you supply to the Insolvency Service.

If the amount that you owed HMRC was correct then that is fully covered by the DRO unless it was a fraudulent debt. 

You should refuse to pay HMRC and they can (at their own expense) get a judge to rule on it if they want to. 

As  it sounds like the Insolvency Service is taking your side, they would be stupid to try that route.

Pabs10

Hi fatbelly, yes I can confirm debt was a overpayment and not fraudulent. It was originally halved because of joint claim with ex-wife then reduced because of payments I had made.
I have a letter of proof with that. I have the original paper work, as mentioned dro states it's for vat and not tax credits.
I have put a formal complaint in but they are still saying I am libel for debt. I am awaiting new paperwork from insolvency service and I am hoping they have amended the vat to tco.
What is worrying is the fact that they handed it DWP debt management and they will just take the out of u/c.

Pabs10

So today I got confirmation from insolvency service that the wording on my dro cannot be changed. My worries are that HMRC will use this wording error saying vat and it not saying tco as a way to getting me to  pay. The amount put in dro, match the amount I owed.
I would like to know anybody's thoughts on this or anybody that as been in a similar situation.

sourcrates

Pabs10 said:

So today I got confirmation from insolvency service that the wording on my dro cannot be changed. My worries are that HMRC will use this wording error saying vat and it not saying tco as a way to getting me to  pay. The amount put in dro, match the amount I owed.
I would like to know anybody's thoughts on this or anybody that as been in a similar situation.

Don`t fret about it, the DRO notes on creditors and qualifying debts are very simplistic.

For example, to cover the debt to HMRC, all it needs to say on your DRO debtors notice is -

HMRC - Debt £4670,00 

so who the debt is with, and how much is owed, is all that is required, as fatbelly has already told you -

"You should refuse to pay HMRC and they can (at their own expense) get a judge to rule on it if they want to. 

As  it sounds like the Insolvency Service is taking your side, they would be stupid to try that route".

He`s a CAB intermediary, he does these things everyday, you should know that his good advice is sound.

Now stop worrying, and enjoy your Christmas.