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Written question asked by Steve Webb (Liberal Democrat) on Tuesday, 9 February 2010, in the House of Commons. It was due for an answer on Monday, 22 February 2010. It was answered by Stephen Timms (Labour) on Wednesday, 17 March 2010 on behalf of the Treasury.


Welfare Tax Credits: Overpayments

Question
To ask the Chancellor of the Exchequer how many legal proceedings have been instigated for recovery of tax credit overpayments in each quarter since April 2003; what the average overpayment outstanding is for which legal action has been instigated; what the total monetary value is of such overpayments; what estimate he has made of the average cost to the public purse of pursuing such cases through the courts; and how much has been recovered through court action.
Answer

HM Revenue and Customs (HMRC) initiates court action only as a last resort.The information requested in the following table.

Tax credit cases entered into Court by HMRC
Number Total Value (£) Average Value (£)
2008-09¹
April-June 2008 1,090 7,649,000 7017
July-September 2008 2,623 18,032,000 6874
October-December 2008 887 6,465,722 7289
January-March 2009 1,719 10,889,145 6334
2009-10²
April-June 2009 792 4,184,128 5282
July-September 2009 408 1,854,732 4545
October-December 2009 249 2,356,757 9464
Notes:
¹ Includes England and Wales and Scotland
² Includes England, Wales, Scotland and Northern Ireland

Information for 2006-07 and 2007-08 could be obtained only at disproportionate cost, as the data for these periods is not centrally held by HMRC's systems.No estimate has been made of the cost to the Exchequer of pursuing tax debt through Court Proceedings.Information of the amount recovered through court action is only available at disproportionate cost, as HMRC systems do not separately record the amount recovered as a result of court proceedings as distinct from the amounts recovered from all stages of the enforcement process.


Secondary information

Type
Written question
Reference
507 c886-7W; 317146
Session
2009-10
Subjects
Overpayments Welfare tax credits
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk