§ Mr. DhandaTo ask the Chancellor of the Exchequer how many overpayments for new tax credits have been made; and how they will be retrieved by the Inland Revenue from(a) bank accounts and (b) other payment methods. [124515]
§ Dawn PrimaroloWhere, during the year, more tax credit has been paid out than was due, the excess is recovered by adjusting payments for the rest of the year.
Entitlement to tax credits is finally settled at the end of the year. An overpayment identified at that point may be recovered by reducing the award for the following year, by adjusting a PAYE code or by direct payment. The Inland Revenue will issue a code of practice later this year setting out its approach to recovery of overpayments.