Recovery of top-up payments

I140Recovery of top-up payments in other cases

1

If—

a

a top-up payment is made into a childcare account, and

b

the account-holder is not entitled to the top-up payment,

the account-holder is liable to pay HMRC an amount equal to the amount of the top-up payment.

2

If—

a

a person who holds a childcare account causes or permits a prohibited payment to be made from the account, and

b

at the time of the payment the person knew, or ought to have known, that the payment was a prohibited payment,

the person is liable to pay HMRC an amount not exceeding the top-up element of the prohibited payment.

3

If a person fails to make a payment in accordance with a requirement imposed by subsections (1) to (3) of section 23 (refunds of payments made from childcare accounts), the person is liable to pay HMRC the top-up element of the payment.

4

If a prohibited payment is made to a person from a childcare account as a result of the dishonesty of that or some other person, each of those persons is liable to pay HMRC the top-up element of the prohibited payment.

5

Where—

a

a body corporate is liable under subsection (3) or (4) to pay an amount to HMRC, and

b

the liability is attributable (wholly or partly) to the dishonesty of a person falling within subsection (6),

that person (as well as the body corporate) is liable to pay that amount to HMRC.

6

The persons are—

a

a director, manager, secretary or similar officer of the body corporate;

b

any person who was purporting to act in such a capacity.

7

Where the affairs of a body corporate are managed by its members, subsection (5) applies in relation to the acts and defaults of a member, in connection with that management, as if the member were a director of the body corporate.

8

Where—

a

a Scottish firm is liable under subsection (3) or (4) to pay an amount to HMRC, and

b

the liability is attributable (wholly or partly) to the dishonesty of a partner of the firm or a person purporting to act as such a partner,

that person (as well as the firm) is liable to pay that amount to HMRC.

9

For provision about calculating the top-up element of a payment, see section 21.