CCM13204 - Discovery Decisions: Discovery Enquiries - Discovery Arising From An Existing Enquiry

In some cases you will learn of the need for a discovery enquiry as a result of a S19 enquiry for a later year. Where you then have reasonable grounds for believing the decision for the earlier year is incorrect and this amounts to fraud or neglect and it is too late to open a S19 enquiry for that year you can open a S20(4) discovery enquiry.

You might already have enough information to enable you to revise the award, for example you have been given the date on which a partner moved in with the claimant. Alternatively you might need further details, for example the claimant has admitted overstating childcare costs but has not yet provided details of the amounts paid throughout the year.

Once you know you will be extending your enquiries into the earlier year you should write to the claimant advising them that:-

• The information they have given (or you have obtained) in connection with the enquiry has led you to believe the award for the earlier year (state the year) is incorrect.
• S20(4) Tax Credit Act 2002 allows you to revise the previous award.
• You will be extending your enquiries to cover this earlier year.
• You should ask the claimant to provide any information which you need and advise them that if they do not do so you will amend the award based on your best judgement.

You will need to consider penalties in the normal way and if you are seeking a contract letter of offer this will include the adjustment for the discovery year.