Overpaid Tax Refund -Should it be repaid

[chriself]

My son was working full time for part of 2010/2011 Tax Year but left his job in November 2010 and then did not work for the rest of the Tax Year. In Spring 2011 he received a Tax rebate for the period he was not working in 2010/11.His circumstances then changed & from September 2011he became a full time student He has not & will not receive any taxable income in the year 2011/12.He did however receive Job Seekers Allowance and did not have to pay Council Tax however this ceased in September when he became a student.I have funded him as a gift since September 2011 The tax office have recently advised him they overpaid his rebate by some £300.Will he have to pay this or can this be set against his Tax free allowance for 2011/12 or be deferred until he has taxable income

[pawncob]

Firstly, check HMRCs figures. They're far from foolproof.
Any refund due to HMRC will have tobe paid. It can't be deferred, held over to next year or be offset against anything.