If the claimant is not in SA and a Claimant Compliance Officer
(CCO) discovers an undeclared source that means that the claimant
should be in SA, the CCO should get the details of the extra source
and amend the award in accordance with the details provided. They
will not challenge the amount.
The CCO will ensure that details are passed to the CCRO. The
CCRO will risk assess and pass to the Right Track Team to pursue
under existing RIAM instructions.
If it is decided to open a Section 9A enquiry on receipt of
the return and following that enquiry the income figure is
subsequently amended, then S20 TCA 2002 allows Tax Credits to
change the Tax Credits award again. SA Enquiry officers must ensure
that Tax Credits are advised of the change to the SA income. In
these circumstances it is advisable that the SA Enquiry officer
liaise with the CCO.
The CCO can continue to work the enquiry around personal
circumstances but they must refer the information regarding income
to the CCRO to risk assess the SA side.
Settlement of the Tax Credits enquiry must be delayed until
either the CCRO decides the information does not merit an enquiry
or the correct level of income is established and reported back to
Tax Credits. The claimant should be told why the Tax Credits
enquiry can’t be settled. If the claimant applies for the
enquiry to be completed see
CCM12310.
CCRO must inform Tax Credits if the case will be taken up
for an SA enquiry or confirm that the decision has been made to
accept the return figures.
If after risk assessment SA decline to make an enquiry then
the SA figure as returned has to be used for Tax Credits purposes.
If an SA enquiry is opened then this should be worked in
conjunction with the existing Tax Credits S19(1) enquiry in
accordance with the instructions in
CCM12710 to
CCM12740.
When the income situation is resolved the Tax Credits
enquiry can be brought to completion.
If, however, you anticipate any significant delay in
concluding the SA enquiry into income, you should correct the tax
credit CY award for other proven risks by making a S16 decision.
Then when the SA income position is resolved the tax credit enquiry
can be concluded by correcting all awards as necessary.
