Tax credits overpayment

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i have been paying back a tax credits via advantis for an overpayment from years ago when DH stated a new job and had a jump in his wage, it started off £7,000 we owed and have been steadily chipping away at this at £30 a month since 2021.

I received a letter today saying I had to review my payment amount so I got in touch and said I could increase the monthly amount slightly but have been told the new guidelines are that it needs to be paid off within 10 years and they want £100 a month to clear it by 2033, we cannot afford this and so they have closed the account and sent it back to HMRC, what can I expect now? Will they insist that amount is paid when HMRC contact me?

I had an overpayment of tax credits some years ago and had a payment arrangement where the amount was changed by me depending on how much I was earning.

When I rang the number on the letter, they were really helpful and I was able to pick an amount that I was comfortable with. Their letters sound threatening I think but when you ring to say that’s all you can afford, they just accept it. At one point, I was just ignoring all their letters and paying anything I could and nothing ever happened except the debt reducing.

This is a very long winded way of saying to ring them and say that £30 is all you can afford. Good luck

When you call HMRC they will discuss with you what amount is affordable for you. If the payment plan will go on for over a certain number of years they will require your income and expenditure details so make sure you have them to hand when you call. HMRC will be really helpful when you call them so don’t worry