CCM14490 - Closing the Enquiry: Interaction with WFTC/DPTC

Your enquiry might have led you to review previous WFTC/DPTC applications. You will need to remember that the rules of entitlement for WFTC/DPTC are very different to NTC and an incorrect NTC claim does not necessarily mean there is an incorrect WFTC/DPTC application.

Where you intend to review the earlier application you will need to work it in accordance with the Applicant Compliance Guide (ACG) and you must issue the appropriate Guides and leaflets.

If you have found there to be an incorrect WFTC/DPTC award, in addition to an incorrect NTC award, but you do not intend to seek a penalty, you can proceed to issue the appropriate decision notice in accordance with both the ACG and the CCM. For WFTC/DPTC you will have to follow the guidance on manual calculation using the system screen prints to issue the decision notice. Remember to seek a certificate of full disclosure covering both periods – see CCM8340.

If you intend to seek penalties you must obtain separate letters of offer to cover each type of tax credits. You will need to have issued both a Guide on How Tax Credit Settlements are Negotiated explaining about penalties for a WFTC/DPTC enquiry and a WTC7 covering NTC penalties. The penalties are very different so you will need to complete a 94 TC and a 94 NTC.