Extended set off

An Update item in Taxation 24 July 2008 referred to an HMRC notice which explained how the provisions in FA 2008 will be applied to set repayments due to taxpayers against any other liabilities to HMRC. Unfortunately that HMRC notice omitted to mention how the new rules will impact on recipients of tax credits or child benefit.

Jane Kennedy MP Financial Secretary said during the committee stage debates on 12 June 2008:

'I am conscious that questions were raised during the consultation about the extent to which the provisions will apply to tax credits and child benefit. I acknowledge that this is a matter of concern for many who have made representations on the Bill. I want to reassure the committee that HMRC will not seek to use an ongoing tax credit award or a child benefit award to satisfy other...