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Needafriend
Junior Member
United Kingdom
344 Posts |
 Posted - 12 October 2008 : 13:10:50
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Hi Paul
What about an old bill that has been billed to you as an IR bill/debt which is not being paid via your current tax credits claim.
This is how mine is now. I though that bills from the IR that were not being paid per your claim but on a seperate bill from them would be included as i am not having mine deducted now as it went straight to payment per month by me not my current monies.
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
Edited by - Needafriend on 12 October 2008 14:42:30 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 12 October 2008 : 13:19:27
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Hi
my understanding is that benefits ( tax credits etc ) are exempt in the same way as Student Loans are exempt.
However other liabilities to the goverment such as income taxe, NI contributions etc can be included in Br.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 12 October 2008 : 13:50:07
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We have not heard anything from the OR about this or even the IR about us not paying the agreed repayment since we went BR.
Do you not think we would have heard from the IR by now.
Thanks
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 12 October 2008 : 14:15:56
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Hi Paul
Have just called the BR dept at the Tax Credits IR office. The chap on the phone is under the impression that any overpayment incurred prior to BR will be written off anything after BR would not.
He is going to call another dept tomorrow and get back to me one way or the other and let me know for def.
So i will update once i know direct from them.
Also just found this on the net, have a read.
Tax Credits
September 2006
PART 7
77.49The tax credits system
The two forms of tax credits are:
Child tax credits. This is a payment to support families with children. A claimant does not have to be working to claim child tax credits.
Working tax credits. This is a payment to supplement the income of low paid working people (both employees and the self employed) including those who do not have children.
For married couples, civil partners and co-habiting couples a joint claim must be made. The credits are means tested, and are awarded for up to a year, and after the first application HMRC will send a renewal notice to the claimant(s) on an annual basis.
Tax credits are initially calculated based on the claimant's current circumstances and income in the previous tax year. There are quite complicated rules concerning when a claimant must notify HMRC of any change in circumstance or income.
From April 2006, all tax credits are paid by HMRC by direct debit into the claimants' bank account. HMRC can request payment of overpaid credits by a direct payment, or can reduce or stop future credits awarded in order to reclaim an overpayment.
77.50 Recovery of overpaid credits after a bankruptcy order is made
In certain circumstances a tax credit may be overpaid and thereafter a recovery may be sought by HMRC. That recovery may be achieved by deductions made from ongoing awards of tax credits or by direct collection where there is no ongoing award of tax credits or where the ongoing award has ceased.
Where tax credits have been overpaid and a bankruptcy order is subsequently made against the claimant, whether or not the overpayment is a provable debt in the bankruptcy depends on the circumstances of the case as follows:
Final award notice (of repayment) issued before the date of the bankruptcy order.
If the recovery is made, or would have been made, by direct collection (in cases where there is no ongoing award of tax credits), HMRC will submit a proof of debt in the bankruptcy, considering the debt to be a provable one.
If the recovery is made, or would propose to have been made, by deductions from ongoing awards of tax credits, HMRC will not submit a proof of debt in the bankruptcy but will continue to make the collections from the ongoing award of tax credits until the bankrupt’s discharge from bankruptcy. Thereafter the balance of the debt will be written off. This action, of continuing to recover the debt post bankruptcy, follows the decision in the case of R v Secretary of State for Social Security, Ex Parte Taylor and Chapman [note 1] which provided that where a bankrupt was indebted to the Secretary of State for Social Security in respect of debts arising from earlier receipts of social security benefits, he/she was entitled to deduct sums from future benefits to be received thereafter in reduction of that indebtedness. Should any bankrupt object to the taking of the ongoing recovery action by HMRC in this way, they should be referred to that Department without further comment by the official receiver.
In all cases where a final award notice (of repayment) has been issued by HMRC before the date of the bankruptcy order, the debt should be added to the list of creditors and HMRC treated by the official receiver as a creditor in the usual way.
I have a bill for mine which was agreed before BR to be paid over 2 years by DD and NOT included in my current claim as the current claim is a new one.
Any ideas on what this all means. Looking through my paperwork we were sent a final awards notice as the old claim ceased and a new one now started.
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
Edited by - Needafriend on 12 October 2008 14:24:24 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 12 October 2008 : 20:34:13
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Insolvency is a wonderful thing because it is neither simple or srtaightforward, and often includes precident.
Who would have thought that something so black & white turns out tobe so grey!
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 12 October 2008 : 20:42:07
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Sorry Paul
Have i made a mistake, i never meant to mean that you were wrong, its maybe me as all i was doing was searching and found this and needed clarification as like you said its not straightforward.
So now that you can see the guidelines what would you say about mine now, will it be included do you think.
Oh again im sorry.
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 13 October 2008 : 17:48:47
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Hi well i have had my call back from the HMRC about my tax credits overpayment.
They have confirmed that seeing as mine was billed as a "Final Awards Notice" and done before BR was instigated that the debt has been included in my BR.
AT least that is one less thing to worry about.
Thanks
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 15 October 2008 : 13:04:37
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Great news Jo!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Paul or Julian- Tax Credit Overpayments
