TFC31600 | Childcare accounts: order in which payments are taken to discharge debts

Childcare Payments Act 2014, section 55

Section 55 applies where a person owes HMRC any amount arising under the Act. A person may owe different kinds of amounts to HMRC and if they have paid off some but not all the total debt, it is necessary to have rules to determine the order in which the different debts are to be treated as paid off.

A relevant debt in this section is a penalty, a recoverable top-up payment as defined in section 53 of the Act, interest charged under section 51 of the Act, or any amount that is not a recoverable top-up payment or interest.