Set-offs - S130 FA2008: set-offs and assignments
The set-off legislation allows repayments nominated to charity under the Self Assessment Donate Scheme to continue to be made to that charity. All other assignments will be secondary to set-off.
Section 133 FA2008 gives HMRC the power to set-off repayments against a taxpayer’s debts where the right to the repayment has been assigned to someone else.
From now on when dealing with assignments (unless assigned under the SA Donate Scheme):
- S133(10) provides that assignments made on or after 25 June 2008 will not prevent you from setting-off the repayment against the assignor’s (customer’s) debts and, where appropriate the assignee’s debts, before making a net repayment
- any assignments dated before 25 June 2008 should be honoured and the repayment made to the assignee.
Please also note that the new right of set-off applies to all debts administered by HMRC including National Insurance Contributions.