TFC50200 - Recovering top-up payments: following a tax credit award made on review

Childcare Payments Act 2014, section 35

Where an account holder or their partner applies, under section 21A of the Tax Credits Acts 2002, for a review of a decision not to award tax credit or to terminate an existing award of tax credit, and that decision is changed, the person is liable to pay HMRC an amount equal to the sum of:

• any top-up payments made to the person for an entitlement period falling wholly within the relevant period

• a proportion of any top-up payments equal to the proportion of the entitlement period that falls within the relevant period

The relevant period means the period in relation to which the following conditions are met:

• the period must fall within the review period

• it is a period for which an award of tax credit is made, or continues, as a result of the variation or cancellation of the decision

• where the award has been made to a person and their partner on a joint claim, the person who was the partner at the time of the claim has been the partner throughout the period

The review period means the period beginning with the day on which the decision was made and ends with the day on which the person who applied for the review is notified of its conclusion or if that day falls within an entitlement period for which the person has made a valid declaration of eligibility, the last day of the entitlement period.