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Welfare Tax Credits: Overpayments

Volume 457: debated on Thursday 8 March 2007

To ask the Chancellor of the Exchequer on how many occasions HM Revenue and Customs has used its discretion not to recover tax credit overpayments from claimants. (125357)

HM Revenue and Customs policy on tax credit overpayments is set out in their code of practice 26 “What happens if we have paid you too much tax credit?” HMRC will write off an overpayment of tax credits if they have made a mistake and it can be shown that it was reasonable for the claimant to believe that their payments were right.

Over the period April 2006 to the end of January 2007, there have been around 303,000 disputed overpayments. Over the same period, HMRC has written off 8,600.