CCM7330 - Discrepancy Enquiries: Single enquiry
(Also see
CCM12015 for the detail and an example
of the Single Enquiry)
You can only enquire
once into a person’s (or couple’s)
entitlement to tax credits for a year. So even more than for
examinations, it is very important to select your cases and conduct
the enquiry thoroughly. This is because once the enquiry is closed,
it will not be possible to enquire into the entitlement for that
year again, although you may be able to make a discovery decision.
- see CCM Chapter 13 (
CCM13000) for a description of the
limited circumstances in which discovery could apply.
It is also important that you consider any other issues and
if you suspect irregularities in any other areas, ensure you
discuss your findings with the relevant CCT to consider referral
for a full enquiry (See Claimant Compliance section of the NTC
Manual for referral processes).
But note that, where a person has been awarded tax credits
both as an individual and as a member of a couple (so that they
appear in more than one entitlement unit), you should issue
separate enquiry notices in respect of each entitlement unit.
Example:
Holly and Thomas are a low-income family with 2 children and
apply for TCs as a couple in April 03, but separate in June 03
having one child each. Holly and Thomas claim as individuals in
their own right. Holly then claims again as a couple in October 03
when she moves in with a new partner, Nathan.
If you were enquiring into Holly's tax credits as an income
discrepancy, you would send the separate enquiry notices for the
periods:
| April 03 - June 03 | (when she was with Thomas), |
| June 03 - October 03 | (when she claimed as a single person) |
| October 03 - March 04 | (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 the household for each entitlement period, therefore Holly will get three enquiry notices and Thomas & Nathan will each get one. So to check Holly's income, each enquiry notice will ask for her full 2003/2004 income so she should report the same figure 3 times. If you need to check the partner's income the notice should ask Thomas and/or Nathan to report their full 2003/2004 income, even though they only claimed credits for part of the year.
