Tax Credits

Charles Walker asks the Chancellor to stop pursuing low income households for replayment of overpaid tax credits.

Mr. Walker: To ask the Chancellor of the Exchequer if he will cease to pursue low income households for the repayment of overpaid tax credits; and if he will make a statement. [18553]

Dawn Primarolo: HMRC's approach to handling overpayments is set out in Code of Practice 26: "What happens if we have paid you too much tax credit?" It explains that, for claimants receiving the maximum award of child or working tax credit, there is a limit of 10 per cent. on the amount by which HMRC will reduce tax credits payments to recover overpaid tax credits from a previous year.

CoP26 is published on the HMRC website and a copy has been placed in the Library of the House.


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