TFC50300 - Recovering top-up payments: following a tax credit award made on appeal

Childcare Payments Act 2014, section 36

Where an account holder or their partner appeals, under section 38 of the Tax Credits Act 2002, against a decision not to award tax credit or to terminate an existing award of tax credit, and the appeal is upheld, 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 appeal period

• it is a period for which an award of tax credit is made, or continues, as a result of the appeal being allowed

• 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 appeal period means the period beginning with the day on which the decision was made and ends with the day on which the person who brought the appeal is notified of the decision on appeal 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.