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Welfare Tax Credits: Overpayments

Volume 468: debated on Thursday 29 November 2007

To ask the Chancellor of the Exchequer from how many declared bankrupts the Tax Credit Office has reclaimed tax credit overpayments. (167647)

Since May 2004 HM Revenue and Customs is aware of around 1,500 cases where claimants have notified the Department that they are bankrupt.

Information is not available for the number of claimants who have notified the Department they are bankrupt but are continuing to pay back an overpayment of tax credits.

If any claimant disputes HMRC's decision to recover an overpayment from them, then HMRC will suspend the recovery of the overpaid tax credits while the reasons for the dispute are looked into.