Where a person has been awarded tax credits as an individual and
as a member of a couple during the same year they will be part of
more than one entitlement unit. Where the risk affects each claim
you must issue a separate opening letter to each individual
entitlement unit.
Example:
Holly and Thomas are a low-income family with 2 children and
have claimed tax credits since April 2003. On 8 September 2007 they
separate having one child each and both claim as individuals. On 11
November 2007 Holly moves in with a new partner, Nathan and they
claim as a couple.
There is a problem with Holly’s income and you need to
open a discrepancy enquiry. You must send separate enquiry notices
for the periods:
| 6 April to 7 September 07 | when she was with Thomas |
| 8 September to 10 November | when she claimed as a single person |
| 11 November to 5 April 08 | when she was with Nathan |
Although Holly may have been earning the same amount throughout
the year it is important to establish the amounts for each
household for each entitlement period. Therefore Holly will get
three enquiry notices asking for her income for the full year and
Thomas and Nathan will each get one.
To save postage and so Holly doesn’t get confused by
getting three letters you should make sure you put all the letters
in the same envelope with a covering note explaining that the law
requires you to send her the three separate notices because she had
three separate claims during the year.
