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Revenue and Customs: Operating Costs

Volume 489: debated on Friday 20 March 2009

To ask the Chancellor of the Exchequer what the cost of operating HM Revenue and Customs' Debt Management and Banking Unit has been in each year since the introduction of tax credits; and how much was spent on the management and recovery of tax credit overpayments in each year. (264207)

HMRC's Debt Management and Banking Directorate (DMB) was formed in April 2005 following the creation of HM Revenue and Customs (HMRC). The total operating costs for DMB since formation are as follows:

Net operating costs (£ million)1

2005-06

262.5

2006-07

235.7

2007-08

231.1

1 Totals comprise paybill, net administration and legal costs for each year. The figures do not include any departmental overheads such as accommodation, IT or other centralised corporate services. The figures quoted include activities undertaken by the directorate not directly associated with debt pursuit and recovery‚ÄĒprincipally those concerned with general payment processing and banking operations.

Responsibility for the management and recovery of tax credit overpayments is shared between a number of directorates, with DMB taking the lead where direct recovery of an established debt is appropriate.

Disaggregating the costs for the management or recovery of tax credit overpayments from other tax credit and debt management expenditure could be done only at disproportionate cost.