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Original poster

HMRC debt repayment

23 replies

Mummype · 30/10/2023 10:18

Could someone please help out a very stressed, sick and worried lady?

I've recieved a tax credit overpayment letter to the tune of 24k due to an ESA error on my claim going back 5 years .

Our household income for the year is 24k so needless to say I don't have it lying around. If I was to contact HMRC and offer a monthly payment of £100 to £150 how likely would they be to accept? Also are they easy to deal amd talk with? I'm recovering from a suicide attempt and I don't cope well in situations like this .

Any help would be massively appreciated

OP posts:
user1468867181 · 30/10/2023 10:26

I would advise you to seek advice from CAB or a local debt charity before you make an offer to HMRC. They can help you look at your income and expenditure to ensure that you can afford to repay the amount you are proposing and may be able to speak to HMRC on your behalf. They can also check that the amount you owe is correct. They will also advise you on whether the debt can be written off on hardship grounds.

Oblomov23 · 30/10/2023 10:44

£24k sounds like a lot. Is it correct? Are you totally sure?
When helping people I always press HMRC and CSA and ask them to clarify their figures.
Then as pp suggested get some advice before you agree to anything. Haggle hard. Tell them you can't afford the figure they've asked for monthly and ask what's the longest you can pay it back? Ask they what the minimum monthly they'll accept.

Original poster
Mummype · 30/10/2023 11:18

Unfortunately yes. Income esa was on my claim when inwas receiving CB esa. My own stupid fault. I'm an absolute idiot

OP posts:
BountySunshine · 30/10/2023 11:26

As others have said try not to panic and get some advice before doing anything.

Stepchange or Christians Against Poverty are both very good. More importantly they will speak to HMRC for you.

LoudSnoringDog · 30/10/2023 11:29

I had HMRC debt to pay ( not as much as 24k, just under 20k)
the debt repayment team were lovely. I had to do an incoming/ outgoing assessment and then we worked out what was affordable for me to pay back (£100 per month)
they were realistic with what was feasible for me without making me struggle. Call them. I think you will be surprised how supportive they are and you can start to resolve the issue asap

LoudSnoringDog · 30/10/2023 11:29

Sorry mine was under 10k not 20k. Fat fingers

TomAllenWife · 30/10/2023 11:33

I'm paying them back £10 per month for something like 40 years

I couldn't give two fucks they can wait for it

They didn't originally accept my offer and did a calculations of outgoings and were like 'oh you don't have any disposable income'

No shit Sherlock

Original poster
Mummype · 30/10/2023 12:11

This has definitely calmed me down. And with it being this did it take over 10 years to pay?

I think I'm afraid of getting someone who won't talk to me in a human way or expect me to pay ridiculous amounts

OP posts:
Original poster
Mummype · 30/10/2023 12:12

Are you serious theyl allow the payment for 40 years ? I don't mean that in a condescending way..I'm more so pleasantly surprised x

OP posts:
Oblomov23 · 30/10/2023 12:14

You get that. ' Computer says no' person. Just don't agree to anything, yet, say you aren't sure and need time to think. Next time you phone you might get someone nicer. It can take 3 or 4 calls to get someone knowledgeable and also nice!

giraffesaregreat · 30/10/2023 12:15

I had an overpayment and had to talk to them to arrange repayment. They were very reasonable and when I offered to pay £50/month they spent a lot of time asking whether this would be affordable for our family. Try not to worry. It was a surprisingly stress-free conversation.

Bideshi · 30/10/2023 12:19

I was in a similar position after I was suddenly widowed and it turned out that my late husband was years behind with his tax and had incurred huge penalties.
I found them very humane (oddly enough) and flexible about repayments. As far as I remember they appointed an advocate, a really decent ex-tax inspector, and he dealt with HMRC on my behalf. The thing to do is not to delay or stick your head in the sand but come clean, be reasonable and see what they can do for you.
They have a bad press, but of all the peopleI had to deal with after my husband's death, they were the most amenable. Don't panic. I'm sure you'll be fine.

PTSDBarbiegirl · 30/10/2023 12:20

Send details of finances. Offer £20 per month until finances improve. Go to citizen advice (if any still exist) and they will admin it for you. Many people in same circumstances. Don't let it make you unwell.

For reference I owed £3k 10 years ago due to child tax miscalculation by them. I paid it off years ago and got a letter last year asking for payment details, they have no record because their system doesn't collect that type of data. Fuckwits. Wish I'd not paid it in full.

TomAllenWife · 30/10/2023 12:36

Mummype · 30/10/2023 12:12

Are you serious theyl allow the payment for 40 years ? I don't mean that in a condescending way..I'm more so pleasantly surprised x

They don't have much choice, I don't earn a huge wage and am single parent

They can't take what I don't have and their calculations showed that

Dontwanttobefatanymore · 30/10/2023 12:45

we’ve just finished paying our overpayment from working tax credits off! £23 a month for 10 years. I’ve posted about their incompetency before, if you do a search there are lots of posts about this kind of situation.
It’s not been on our credit files or anything like that, so I’ve been happy just leaving it at that amount

Original poster
Mummype · 30/10/2023 15:04

That was another worry that it would affect our credit but il be honest and take responsibility for this stupid mistake. And il keep trying until I get someone I feel is compassionate on the phone. I just feel so so stupid that this has happened x

OP posts:
NoNeedToHurry · 30/10/2023 15:07

I second contacting Christians Against Poverty they are a brilliant charity who will help you. You don't have to be at all religious or of faith to use them. They are a (literal?) Godsend 😂

Original poster
Mummype · 30/10/2023 16:02

Thank you to everybody who has replied. Today I've even so stressed I went dizzy and almost fainted. It's a horrible feeling but you have eased a worried mind a little so thank you xx

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PastorCarrBonarra · 30/10/2023 19:46

The Payment Support team at HMRC are staffed by really competent, empathetic people. I’m an accountant and have heard only good things (although my clients tend to have Self Assessment debt). HMRC staff are hit and miss but I think that this team is very good. They won’t make you feel stupid either.

Original poster
Mummype · 30/10/2023 20:27

Thank you so much..I'm ready to tackle this and if it takes 10+ years then so be it

OP posts:
Original poster
Mummype · 30/10/2023 23:55

I'm so sorry for your loss and subsequent stress u suffered after xx

OP posts:
PandyT · 31/10/2023 00:32

PastorCarrBonarra · 30/10/2023 19:46

The Payment Support team at HMRC are staffed by really competent, empathetic people. I’m an accountant and have heard only good things (although my clients tend to have Self Assessment debt). HMRC staff are hit and miss but I think that this team is very good. They won’t make you feel stupid either.

I'll second this. Any clients we've advised to speak to HMRC and ask for a time to pay arrangement have reported very good support/advice/sympathy from that team with payment plans carefully worked out.

See here: www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement

(If only other HMRC teams would pick up the phone!)

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