Clause 28 - Recovery of overpayments
Tax Credits Bill
5:45 pm
Mr Richard Younger-Ross (Teignbridge, Liberal Democrat)
The Minister has kindly explained that there will be no instant demand, and that repayment will be spread over time. When people who deal with PAYE underpayment talk to the tax office at the beginning of the year, they hear, ''You have underpaid £500. We want it now.'' I have experienced two instances of that, and it was the Inland Revenue's fault. There is still the shock of a bill for £500. Will the Minister ensure that the guidelines and regulations make it clear that there shall be no demands such as, ''You have been overpaid £200. We want it back''? The Revenue should state that there has been an overpayment, and that repayment will be expected over a period. It should state how it will deal with the matter, rather than argue about the period for repayment.