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D0N
Rank; Hector Tax Inspector


7 Posts

Posted - 14/03/2010 :  23:08:47  Show Profile Send D0N a Private Message
Does anyone have any experience of negotiating a compromise agreement with HMRC with regard to tax credit overpayments? Is there a mechanism for offering to pay a proportion of what they are claiming in order to avoid the trouble of an extended dispute?

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splashin
Rank; Really should become a politician



Belize
730 Posts

Posted - 15/03/2010 :  01:11:46  Show Profile Send splashin a Private Message
Hi Don

Never, ever, ever, heard of anyone even trying to negotiate with HMRC on an overpayment debt. I wouldn't think it was negotiable, it's money from the public purse, there is no interest rate being applied to the overpayment amount whilst outstanding. It's just the amount they say they paid out to you, that you were not entitled to. The only way to negotiate is to prove that they are wrong in there findings of how the overpayment occurred. Sometimes people who do dispute, get there case file looked into and HMRC sometimes do find small error's, which are making the overpayment total actually higher than what it should be. HMRC correct the errors and the overpayment reduces, sometimes even disappearing all together.
I would say if you did make that call asking for a reduced figure for a quicker pay back to HMRC, would be shooting yourself in the foot. You are admitting your at fault there and then. I would be interested in hearing if you do ask for this compromise agreement, what type of response you get from HMRC. And after all, I truly believe, if you don't ask in this world, you don't get. It just may be possible.


Splashin
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D0N
Rank; Hector Tax Inspector



7 Posts

Posted - 29/03/2010 :  13:54:09  Show Profile Send D0N a Private Message
The thing about a compromise agreement is that it does not involve either party in any admission of blame or responsibility. It simply recognises that both parties are prepared to settle a dispute on agreed terms. Even if you thought you were completely in the right, you might prefer to compromise to avoid all the time and trouble of pursuing your case. I phoned HMRC to ask about this. I am still at the first stage of my dispute. The person I spoke to had no knowledge of compromise agreements and said I should write to the Complaints Department about this.
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LittleLady
Rank; Hector Tax Inspector



40 Posts

Posted - 09/04/2010 :  11:44:27  Show Profile Send LittleLady a Private Message
This sounds like a "composite offer", is that the same thing? Generally used when an inspector of taxes is conducting an enquiry into the tax affairs of an individual or company, and basically a time- and money-saving way of getting a chunk of cash-to-bank without months of correspondence and disagreement.

There is nothing stopping people sending in a composite offer for a tax credit overpayment. However, it would be unlikely to be looked upon favourably by HMRC, because as mentioned above, there is no interest on tax credits debts, and the guidelines allow for long-term repayment plans where proven necessary. Also, whereas in an enquiry the tax inspector may take months to work out what tax is due using invoices, bank records etc etc, in tax credits cases HMRC already have an "established debt" until your dispute proves otherwise.

Could be worth a shot, but I would go through the whole dispute process before offering anything!
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splashin
Rank; Really should become a politician



Belize
730 Posts

Posted - 09/04/2010 :  14:39:29  Show Profile Send splashin a Private Message


Totally agree with LittleLady !!!!!

"Could be worth a shot, but I would go through the whole dispute process before offering anything!"

That's my type of talk !!!




Splashin
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