Quick question - My partner and myself were over payed a large amount of tax credits a few years ago (although I still dispute the amount or whether I was wholly responsible) and these are included in my IVA - approx £5000.
My IVA has been running for 18 months now but I have not received tax credits because according to HMRC I am still paying off the overpayment.
Surely this isn't right if its included in my IVA?
6 months down, 66 to go to freedom from £75,000 debt!!
Hi
Yes you should, however were the tax credit payments that you should have received factored into your income when working out your disposable income ?
If not then the back payments may well be seen as a windfall and payable into your IVA
Regards
It does really depend upon the timing of the determination by HMRC. If the overpayment was not determined at the time of your IVA - HMRC can continue to seek repayment by clawing back your current entitlements until the debt has been repaid in full.
This is a complex area and one which I am not even sure the staff at HMRC really understand.
Well I've been in touch with Payplan regarding this, they said I should contact HMRC.
I have spoken to HMRC twice regarding this now, it has been sent to Head Office and they say there has been 'no mistake', and something about '14% remittance' and I will not receive any backdated credits or any credits at all basically until the overpayment has been made. Its in my IVA for gods sake!!!???? Whats the point in having it in my IVA if I'm still paying for the overpayment??
The overpayment is now at £3400, in the IVA it is listed as £5400.
How can I not be receiving tax credits when all the overpayment is included in the IVA, its just a joke, its like I'm paying them twice!
Its like me paying Natwest £40 a month for my credit card debt included in my IVA.??????
I have appealed against their decision. Payplan have not been very helpful. Any advice please very welcome?
6 months down, 66 to go to freedom from £75,000 debt!!
Payplan need to sort this out for you. They are receiving payment for supervising your arrangement, and should therefore be dealing with all aspects of the case including the agreement of creditor claims. It is not acceptable to advise you to deal with your creditors directly - that is their job.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Spoke to Payplan today regarding this and they are about as much use as a chocolate teapot. They seem to be very reluctant to speak to HMRC for some reason and keep insisting I call them. Payplan don't seem very knowledgeable in my opinion. In the end I had to virtually 'order' them to phone. They were then supposed to call me back today with feedback but didn't. USELESS!!!
6 months down, 66 to go to freedom from £75,000 debt!!
Hi
Very poor service indeed.
The debt is included in your IVA so no payment should be going back to HMRC, full stop.
Don't let this one go, write to your IP explaining the situation and post the response on here please.
Your IP should be dealing with this, not you
Regards
I'm with Payplan myself and so far have no problems, but this is disgraceful service.
Email the IP direct via the link that I posted. Much better speaking directly to them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have contacted Payplan on various occasions now since the last post and their utter ignorance is dispicable and customer service appalling. I would advise anybody contemplating using Payplan not to.
Emails sent and replies/actions below since the last post:
To Payplan
Following our telephone conversation on 14/06/2010 with regards to the issue with overpaid tax credits, you stated that you were going to follow up the issue with HMRC and call me back. You have not done this and I am extremely dissatisfied with the service I am currently receiving with regards to this matter.
I have taken advice from two IVA professionals and a debt counsellor and they insist that it is the sole responsibility of Payplan to resolve this matter. They both also insist that I should NOT be repaying tax credits at this present time if it was originally included in the IVA agreement. My partner and myself are entitled to £547 per annum of child tax credits and have been since the IVA agreement started but have not received any monies since then.
Under no circumstances should I have to deal with a creditor to whom funds are due, this is what Payplan are being paid to do. There is serious error here involving Payplan/HMRC and the IVA and I must insist it is resolved as soon as possible or I shall have to make a formal complaint.
Reply from Payplan:
Hi Richard
My apologies for not getting back to you sooner. I have contacted HMRC and am awaiting a response. In regards to the dissatisfaction that you have expressed, your complaint has been passed to our Compliance department to be investigated. They will contact you shortly.
If you have any questions please let me know.
Note: No phone call to me from Comliance dept since this email
To Payplan:
Have you had a response from HMRC with regards to the tax credits problem yet? If not could you please call them again today. This is important now because my current contract finishes this week and I will be out of work. The money they owe me will be vital if I don't find work immediately.
Response from Payplan:
Hi Richard
Your email has been acknowledged and someone will contact you from our complaints department.
NOTE: QUESTIONS NOT ANSWERED AND NO SUBSEQUENT PHONE CALL FROM COMPLAINTS DEPT.
To Payplan:
Please advise your line manager that I wish him to call me between 10am and 10.30am on Thursday. I am starting to lose patience rapidly regarding this matter now as nobody has been in contact with me. The current standard of service I am receiving from Payplan is disgraceful.
Richard Jackson.
NOTE: NO TELEPHONE CALL RECEIVED BETWEEN THE TIMES REQUESTED AT ALL. NO PHONE CALL RECEIVED AT ALL. NO RESPONSE TO THE EMAIL.
6 months down, 66 to go to freedom from £75,000 debt!!
You have been treated badly as someone should have got in touch with you.
Have you emailed the IP direct via the link I posted previously?
I am with Payplan, and have no problems with them so far.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
