I notices on an earlier thread that HMRC have now said offsetting is allowed by the TCO. I have a client whose husband left the UK, she claimed as a single person but didnt notify HMRC of her husbands return until 8 months later. They reclaimed as a couple and were awarded WTC including the disablity element (for husband).
HRMC arew now trying to recover the OP as she did not let them know of the material change of circs.
Does anyone know where within the TC manual the rule change RE offsetting is?

I haven't seen anything in writing but was told this by a local IR investigating officer on Monday and he was definately going to do it in one of my cases as soon as we got P60s to him.

Hi Derek,

This may well have passed me by, but I was not aware that the HMRC had already adopted offsetting. I know that this was being flagged up a few months ago, but thats all.

Tried putting "off setting" into HMRC web site, but no revelatory links produced.

Off setiing is referred to in the compliance manual, but only in the context of recoving past overpaid WTC/CTC from ongoing WTC/CTC etc.

The type of case you refer to one is a "classic" one in the sense that the HMRC will typically refuse to entain any off set, on the grounds that (i) no proper claim was made by the person when single etc, and (ii) the TC regs do not seem to make provision for it anyway. If the HMRC has had the road to damascus experience and adopted a HB reg 104 type flexibility, I think we should crack open a bottle of cava.

Steve

Looking for any updated info, I have a client that has an overpayment
due to him separating from his partner have contacted the IR to try
and get the child tax credit overpayment offset against his ex partner
new award, as her payments did not change throughout the period when the joint claim stopped and the single claimants started.
As far as they are concerned they do not offset.

Do you have anything to the Contrary.

Elaine

i'm not aware of anything emerging since jfournier's post - see -

http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=104&topic_id=1017&mesg_id=1017&page=2