Having gone through the usual TC846 procedure and, no doubt, following recent concessions by Ministers IR decided not to recover an overpayment from our clients and agree to refund sums recovered to date. However, instead of making lump sum payment of the sum it is being paid by increasing the award for the remainder of the current tax year with payments made in the usual method by BACS/employer etc. Apparently the facility to make lump sum re-payment is currently 'unavailable'.

My reading of HB Reg 24A is that the instalment payment of the refund will be treated as income for HB/CTB purposes under this reg.

In otherwords IR give the money back and DWP reclaim it, subject to the taper, from HB/CTB.

Am I correct in my interpretaion of HB Reg 24A? Anyone else have same issue with their clients?

We will be taking the issue further!

I don't have knowledge of the HB reg., but did - some months ago - have a client who received a lump sum payment from TCO to refund money (wrongly) recovered in respect of an overpayment. If they could make lump sum payments then, why can't they now? It is not beyond their wit to issue a giro - in fact I was last week promised one for about £1200 for another client (but this was not in respect of an overpayment). I would be inclined to push TCO on this and, if necessary, involve the MP if the client is going to lose out as a result of the HB Regs.