The Social Security (Claims and Payments) Regulations 1987

[F1 Tax credits overpayment debts and self-assessment debts E+W+S

7E.— (1) In this paragraph—

“self-assessment debt” means any debt which—

(a)

has arisen from submission of a self-assessment to Her Majesty’s Revenue and Customs under section 9 of the Taxes Management Act 1970 (returns to include self-assessment); and

(b)

is recoverable under Part 6 of that Act;

“tax credits overpayment debt” means any debt which is recoverable under section 29 of the Tax Credits Act 2002 (recovery of overpayments).

(2) Where the conditions set out in sub-paragraph (3) are met, the Secretary of State may deduct from a specified benefit to which the beneficiary is entitled a sum which is up to a maximum of 3 times 5 per cent of the personal allowance for a single claimant aged not less than 25 and pay that sum to Her Majesty’s Revenue and Customs towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs.

(3) The conditions mentioned in sub-paragraph (2) are—

(a) that the beneficiary has given written consent to Her Majesty’s Revenue and Customs for deductions to be made from a specified benefit towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs; and

(b) no sum is being deducted under this paragraph.

(4) The Secretary of State shall cease making deductions from a specified benefit under this paragraph if—

(a) there is no longer sufficient entitlement to a specified benefit to enable deductions to be made;

(b) entitlement to all specified benefits has ceased;

(c) the beneficiary withdraws consent for the Secretary of State to make deductions from a specified benefit; or

(d) the beneficiary is no longer liable to repay any tax credits overpayment debt or self-assessment debt.

(5) The Secretary of State shall notify the beneficiary in writing of the total sums deducted under this paragraph—

(a) on receipt of a written request for such information from the beneficiary; or

(b) on the termination of deductions.

(6) Where a deduction is made under this paragraph from a specified benefit, paragraph 8 (maximum amount of payment to third parties) is to have effect as if—

(a) in sub-paragraph (1) for “and 7A” there were substituted “, 7A and 7E”; and

(b) in sub-paragraph (2) for “and 7D” there were substituted “, 7D and 7E”.]

Textual Amendments

F1 Sch. 9 para. 7E inserted (30.4.2010) by The Social Security (Claims and Payments) Amendment (No. 2) Regulations 2010 (S.I. 2010/870), regs. 1, 2(2)(b)