Advice re: Rossendales debt

scoey1001 · 4 December 2017 at 10:19AM

Hi all,

Looking for some advice. The debt is for overpaid tax credits and the amount is £1500 (£750 each me and partner). So far i haven't replied to any correspondence, which started with letters from Rossendales, then it was sent back to HMRC and now back with Rossendales who have sent a 'final demand before legal action. Can anyone please help with a few questions.

1. What would likely happen if i ignored this? Chances of Rossendales/HMRC applying for CCJ?
2. If i CCJ was applied for would i be given a final chance to pay before it showed on my credit history?
3. Can this affect my credit history anyway? (even if a CCJ isn't applied for)

I am aware this probably has to be paid however i only want to pay around £40 per month, what's the best way of negotiating this?

Thanks in advance for any advice.

xsinaftersinx · 4 December 2017 at 11:24AM

It depends on how you want to play it, the debt to HMRC is never going away, they will basically take it from your tax if needed so you'll lose if from your pay monthly and you#ll have no real say over how much they will take. Also, if you ever need to claim benefits, they will take it from that also.

I have a dispute over an £11k that they say I owe for the same thing (long story, 6 years ago they confirmed it was an error as I've never even been given that amount in total and to not worry about it) this year someone turned up at my house demanding money.

I'm now paying £300 a month which is what they say I can afford (but I honestly can't) but because a family member paid for a holiday for us this year they won't accept less because we can obviously afford it.

What I'm trying to say is they will get their money back one way or another either by changing your tax code or taking it from any benefits you'll get in the future.

fatbelly · 4 December 2017 at 1:15PM

Do you work?

The favoured tactic at the moment is a Direct Earnings Attachment, which does not need a court order.

The amount is in theory non-negotiabe and on a sliding scale, though I have had some success in pleading hardship and getting a fixed, lower rate.

A ccj is unlikely unless none of the other methods work for them.

Offer £40 per month, justified by a financial statement. see what happens.

Sazmataz · 4 December 2017 at 1:42PM

Have you tried talking to Rossendales and offering them the monthly amount and negotiating?

Do you have any other debts that you're struggling to pay? Debt collection companies often behave like they're the only person you owe money to, but they won't know any differently unless you tell them. If you have lots of debts and your income isn't big enough to meet your basic needs and your repayments it might be worth getting some help from one of the free debt help centres (not one that charges) and they can often negotiate with creditors (including HMRC) and sometimes avoid things going to court.

National_Debtline · 4 December 2017 at 4:44PM

Hi scoey1001

scoey1001 wrote: »

1. What would likely happen if i ignored this? Chances of Rossendales/HMRC applying for CCJ?

As fatbelly mentions, CCJs aren't a common way to recover tax credit overpayments although it is possible. A direct earnings attachment (DEA) is more likely but in some circumstances they can also change your tax code or take a deduction from certain benefits to recover the debt. If you want to avoid these options it is best not to ignore the debt.

2. If i CCJ was applied for would i be given a final chance to pay before it showed on my credit history?

A CCJ will not be recorded on your credit file for the usual 6 years if you can pay it off in full within a month of it being made.

3. Can this affect my credit history anyway? (even if a CCJ isn't applied for)

A tax credit overpayment will not affect your credit history unless you receive a CCJ or are made bankrupt.

Susie
@natdebtline

Advice re: Rossendales debt

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