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Chapter SG66300

Document Cited authorities 3 Cited in Related
Vincent
Published date10 April 2016
Record NumberSG66300
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

Under section 130 of the Finance Act 2008 (s130) HMRC can set-off amounts that are due to be repaid to a person (credits) against debts (debits) owed to HMRC by that person.

Set-off can only occur where the credit is owed to, and the debit is owed by, the same person.

S130 set-off does not apply where security is provided by a performance bond.

Set-off can only take place where the person’s debt is not disputed, or where the time for them to appeal has passed. The only debt to HMRC that cannot be set-off is costs.

Where security becomes repayable but the person then becomes insolvent, see SG66400.

You can make the set-off without the person’s permission but you must write to them, using Set off notification letter 23a, to warn them about what you are going to do. They do not have a right of appeal or review about your decision to set-off a credit against a debit.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

After the offset action has been completed write to the person again, using Set off confirmed letter 23b, to tell them what action you have taken.

Any money left after set-off should be repaid to the person, see SG62000.

You should ask the Southend Direct Receipts...

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