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Chapter IDG51200

Document Cited authorities 3 Cited in Related
Vincent
Published date19 March 2016
Record NumberIDG51200
CourtHM Revenue & Customs
IssuerHM Revenue & Customs
Why share information with the Department for Work and Pensions?

The functions of the Department for Work and Pensions (DWP) and those of HMRC often depend on a common interest in the same information. In particular the two departments overlap when dealing with National Insurance Contributions (NICs), tax credit applicants, social security benefit claimants and pension credit claimants.

DWP may also request HMRC information on behalf of a local authority. This is because local authorities have a role in the administration of social security benefits in the form of housing benefit and the administration of the benefit cap from April 2013 ; council tax benefits and the replacement council tax relief. There are also certain welfare services and “passported” benefits administered by local authorities which will require HMRC information. This will normally be obtained from DWP.

The Welfare Reform Act 2012 which provides for the introduction of the Universal Credit from 2013, has consequences for the legal bases upon which HMRC may share information with both DWP and local authorities.

The information gateway provided by Section 127 of the Welfare Reform Act 2012 is designed to enable reciprocal sharing of HMRC and DWP information for the departments` respective functions. For example, DWP`s delivery of Universal Credit will be heavily dependant on the information provided by HMRC from the Real Time Information of claimant`s pay and tax details. Whilst this gateway is ostensibly “wide”, it is permissive and as such any disclosures should still be considered against the tests of necessity and proportionality in the Human Rights Act and the Data Protection Act. SeeIDG40140 and IDG40160

The Universal Credit will eventually replace numerous means-tested benefits and Tax Credits. For example, Housing Benefit will form part of the new Universal Credit award. However, existing Tax Credit claimants will continue to receive Housing Benefit until they...

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