CCM14400 - Closing the Enquiry: Submissions of offers to the Claimant Compliance Group Manager (CCGM)

At CCM14385 you will have seen that certain contract offers need to be submitted to your CCGM. To assist the CCGM the papers must be submitted in a particular layout – see below.

If the offers are accepted, the CCGM will arrange for the letter of acceptance and payslip to be issued.

You should complete Part B of the Form 94 NTC (ie. the calculation of the suggested offer) to show the amount offered and any payments made on account and then prepare a report using the following headings:

  1. Particulars
  • name and address of the claimant
  • approximate age if known
  • date of death, if deceased.
  1. History

A brief history of tax credit claims, including any previous enquiries or examinations. If relevant, include details of any previous HMRC enquiries into income tax offences.

  1. Origin

Date your enquiry was opened and the reason why the case was selected for review.

  1. Nature of Irregularities

Details of the errors/omissions established during your enquiry and how you went about establishing the correct details. You should comment on the level of co-operation given by the claimant and give your views on any pleas he or she put forward in mitigation of the offences.

  1. Overpaid Credits

State clearly:

  • the period to which the claim(s) relates
  • the amount of tax credit payable in accordance with the S18 decision(s)
  • the amount of tax credit that would have been payable had the claim(s) been correct, or if the change of circumstances had been notified at the correct time
  • the amount of tax credits overpaid which you intend to recover in your settlement
  • where the claim was made by a couple explain how you decided who should pay the penalty and repay the overpaid credits.

Where there has been more than one period, the details should be shown separately for each period. You might find it helps to set these details out on a separate sheet of paper or on a spreadsheet.

If the enquiry has led you to open an examination into a later year you should show the amount of tax credits overpaid which are recoverable in-year (see CCM8125). You will be including these tax credits in your settlement.

  1. Penalties And Interest

You should state:

  • the maximum amount of penalties
  • where in the papers you establish culpability
  • for Section 31 penalties, your views on abatement for disclosure and co-operation
  • for Section 32 penalties the appropriate penalty level
  • the date from which interest is payable.
  1. Offer

State the amount offered in settlement and the terms of the offer. You should also state the amount of any payment on account held together with the appropriate collection reference number. If a letter of acceptance is to go to an accountant/adviser etc state the name and address and reference number of that person.

  1. Means

You should comment on the means of the claimant, if appropriate, either as regards the amount of the offer or the terms of payment. If you obtain details of assets/liabilities or incomings and outgoings, these should be flagged or otherwise indicated.

  1. Your Recommendation

If the offer is less than the suggested offer you should say why you recommend acceptance or rejection. Otherwise, if the offer is for the suggested amount you should simply say you recommend acceptance.

Your report should be signed by your Claimant Compliance Centre Manager (CCCM) to confirm that they have seen and approved the contents. Normally you will have passed the report through your Claimant Compliance Centre Manager (CCCM) who will need to satisfy himself or herself that everything is in order before passing the papers on to the CCGM.

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