CCM8730 - Closing the Examination – Interaction with WFTC/DPTC

Your examination 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 arrange for the decision notice to be issued after consulting with the CCC Preston/Washington as you will not have direct access to the computer system. 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 94TC and a 94NTC. You will need to take particular care that you include the correct amount of over-paid tax credits. For WFTC/DPTC enquiries, there will almost always be over-paid credits whereas for NTC examinations this will only occur in special circumstances.