HMRC overpayment TC after job. Advantis involved.

adi0604

Hello real advice experts.

I received letter for overpayment of TC following my new job for £3K - when I checked HMRC app they had already adjusted TC amount as per my pay in few months of starting job.

Now what are my options as last week I received letter saying its not £4.3K I own HMRC.

Advantis is chasing for original £3K. 

Should I just ignore and hoping HMRC will rectify or go away? or offer any repayment options.

Frankly speaking I am ok paying £50 per month. But worried if I engage them may not accept.

Does this affect credit file?

Please help with solution.

Thanks for taking time to read.

peteuk

The problem with TC is that it calculates your payments on the whole year.   It takes an estimated (based on the previous years income) decides to pay you an amount, which is then devided into 13 payments.  If in Febuary you get a new job which means you are not entitled to TC then you owe the whole years TC. 

At the end of the tax year, they work out what you should have reiceved and your notified of any over/under payments. 

Ignoring it - it wont go away.  If you stop paying then they can take it from your benefits or your wage.  Regardless of the length of time between the overpayment and the date they recover it. 

It doesnt show on a credit file, as its not credit (if its kept with HMRC/DWP) 

Call them set up a payment plan at what ever you can comfortably afford.  

ChasingtheWelshdream

adi0604 said:

Frankly speaking I am ok paying £50 per month. But worried if I engage them may not accept.

They will accept a payment plan. We owed a similar amount for similar reasons. We pay £40 a month, no problem setting it up.

It won’t go away, so you must engage and offer what you can.

peteuk

Oh and also if it was a joint claim, check if they havent split it in two and are asking each claimant to pay 50% of the total overpayment. 

adi0604

ChasingtheWelshdream said:

adi0604 said:

Frankly speaking I am ok paying £50 per month. But worried if I engage them may not accept.

They will accept a payment plan. We owed a similar amount for similar reasons. We pay £40 a month, no problem setting it up.

It won’t go away, so you must engage and offer what you can.

Thanks for your response. Do they go through your income/exp. before agreeing plan?

adi0604

peteuk said:

Oh and also if it was a joint claim, check if they havent split it in two and are asking each claimant to pay 50% of the total overpayment. 

Thanks for your response. Me and my wife received same letter in different names so I would say they have not split them yet. What are the benefits or drawbacks?

peteuk

adi0604 said:.

Thanks for your response. Do they go through your income/exp. before agreeing plan?

They didn’t when I set up my payment plan.

adi0604 said:

peteuk said:

Oh and also if it was a joint claim, check if they havent split it in two and are asking each claimant to pay 50% of the total overpayment. 

Thanks for your response. Me and my wife received same letter in different names so I would say they have not split them yet. What are the benefits or drawbacks?

As I say check, if the overpayment is £10K then you will both recieve a letter saying you owe £5K.  With us it took them 6 months to send my wife’s letter, so until that point we thought it was £2K but in reality it was £4K.  

ChasingtheWelshdream

adi0604 said:

ChasingtheWelshdream said:

adi0604 said:

Frankly speaking I am ok paying £50 per month. But worried if I engage them may not accept.

They will accept a payment plan. We owed a similar amount for similar reasons. We pay £40 a month, no problem setting it up.

It won’t go away, so you must engage and offer what you can.

Thanks for your response. Do they go through your income/exp. before agreeing plan?

Not with us, we just rang and told them what we could afford and they set up the direct debit. At the end of the day, we only received approx £50 a month tax credits anyway (due to a previous overpayment), so we are paying back at a similar rate until the end of 2026. They sent through confirmation of the payment plan, dates and amounts. No other questions asked.

I do keep a spreadsheet of all payments and nearer the time, I will contact them to check what happens once everything is paid off.