Clause 6 - Notifications of changes of circumstances

Part of Tax Credits Bill – in a Public Bill Committee at 6:30 pm on 15 January 2002.

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Photo of Mr Howard Flight Mr Howard Flight Conservative, Arundel and South Downs 6:30, 15 January 2002

In this territory, as in others, there is a trade-off. In order to reduce administrative requirements on individuals and the Revenue, we could end up, as is the case with longer periods of notice, with more and more tax credits potentially being paid at a greater level than people are strictly entitled to. That, of course, will be paid for by other people's taxes. There must be a balance. The more one goes down that route, the more it highlights the need for an easy mechanism to claw back overpayments, to which I previously referred. One cannot have it both ways. Either there must be a system requiring annual reporting that can claw back overpayments, or the rules must stay pretty tight.