CCM3080 - Liaison: Links between Tax Credits and SA

As the Examples at CCM3070 show, the links between TC and SA operate direct from SA to TC, because the actual income claimants may need to report to correct their estimated income for TC will need to be taken from the SA return. So an SA enquiry officer will be expected to consider the impact on the TC award/claim if the enquiry results in revisions to:

• The level of business profit/loss (including business related rental income or income from property
• Directors income (remuneration, shares, dividends)
• Employees/directors earnings (including tips, gratuities, bonus. Commissions, benefits in kind)
• Revision to any other income returned for the year (interest on savings, investments and dividends, income from property, trust income, foreign income, pensions (occupational, state or personal)).

CCO’s will need to consider SA impacts if they discover income issues during a Tax Credits enquiry or examination, see CCM3085.

See CCM12070 for examples of the interaction between SA and Tax Credit enquiry windows.

It is crucial to secure the link between SA and Tax Credits to ensure we do not close an SA enquiry before we have been able to consider and open a Tax Credit enquiry.

Tax Credit Consultants will work alongside the SA Enquiry officer to handle the Tax Credit aspects within the cases and provide the necessary expertise in Tax Credit processes and procedures, see CCM12600 for more information.