The Treasury has announced that, from Spring 2010, HMRC will start to trial the recovery of working tax credit and self assessment tax debts through deductions from benefit payments, effectively allowing the Department for Work and Pensions to collect HMRC debts.

The trial will involve taxpayers, on a voluntary basis, who are in receipt of benefits and whose tax credit overpayment or self assessment debt is less than £1,000.

Posted on 02 Oct 2009