{
  "url": "https://openlegislation.uk/childcare-payments-act-2014/section-40",
  "json_url": "https://openlegislation.uk/childcare-payments-act-2014/section-40.json",
  "legislation": "ukpga/2014/28",
  "legislation_title": "Childcare Payments Act 2014",
  "legislation_url": "https://openlegislation.uk/childcare-payments-act-2014",
  "path": "section/40",
  "kind": "section",
  "number": "40",
  "heading": "Recovery of top-up payments in other cases",
  "text": "(1) If—\n(a) a top-up payment is made into a childcare account, and\n(b) the account-holder is not entitled to the top-up payment,\nthe account-holder is liable to pay HMRC an amount equal to the amount of the top-up payment.\n(2) If—\n(a) a person who holds a childcare account causes or permits a prohibited payment to be made from the account, and\n(b) at the time of the payment the person knew, or ought to have known, that the payment was a prohibited payment,\nthe person is liable to pay HMRC an amount not exceeding the top-up element of the prohibited payment.\n(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.\n(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.\n(5) Where—\n(a) a body corporate is liable under subsection (3) or (4) to pay an amount to HMRC, and\n(b) the liability is attributable (wholly or partly) to the dishonesty of a person falling within subsection (6),\nthat person (as well as the body corporate) is liable to pay that amount to HMRC.\n(6) The persons are—\n(a) a director, manager, secretary or similar officer of the body corporate;\n(b) any person who was purporting to act in such a capacity.\n(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.\n(8) Where—\n(a) a Scottish firm is liable under subsection (3) or (4) to pay an amount to HMRC, and\n(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,\nthat person (as well as the firm) is liable to pay that amount to HMRC.\n(9) For provision about calculating the top-up element of a payment, see section 21.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "S. 40 in force at 14.11.2016 for the purposes of the trial by S.I. 2016/1083, reg. 2(f)"
    },
    {
      "type": "I",
      "label": "I2",
      "text": "S. 40 in force at 21.4.2017 in so far as not already in force by S.I. 2017/578, reg. 3(d)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2014/28/section/40",
    "retrieved_at": "2026-10-29T09:07:18.833716+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}