Manually Adjusting Payments To Avoid Hardship - Enquiry Centre Only (AG)

• When you have authenticated the claimant, go to step 2

• Use Function VIEW HOUSEHOLD NOTES to see if any payment adjustment has been made in the current tax year. To do this, check if any of the following messages are shown, dated within the current tax year

‘PM03 - Adjust in year Payment % set to (% amount) TC868 issued DD/MM/YYYY'

‘TCMZ Adjust in year Payment % changed to (% amount) TC868 issued DD/MM/YYYY'

‘PM05 - Adjust in year Payment % request declined Letter TC869 issued DD/MM/YYYY'

‘TCMZ MAPTH not appropriate because case is cross year recovery only - TC869 issued to claimant’

'TCMZ Secondary hardship referral sent to DMB via email'

'TCMZ Secondary hardship referral sent to DMB via Taxpost'

'TCMZ Secondary hardship referral to DMB declined - not exceptional circumstances'

‘TCMZ Investigated by DMB - hardship appropriate / not appropriate’

Or

‘TCMZ Final Hardship top up payment authorised on DD/MM/YYYY, R92TC No. XXXXXXX. There are no further payments due this financial year’

• If one of the messages is shown and

• The claimant no longer wants their payments to be adjusted and therefore wishes to go back to full recovery. Tick the box marked ‘Unhappy with the amount of the adjustment’ and tick the box marked ‘Claimant no longer requires adjustment’ on the referral form and then go to step 19

• The claimant is unhappy with the amount of the adjustment, for example if the claimant has had a change of circumstances and feels they are now entitled to a higher percentage adjustment, tick the box marked ‘Unhappy with the amount of the adjustment’ on the referral form and then go to step 19

• The claimant states that they have been in receipt of additional off system payments in the previous tax year and because of the new tax year these payments have stopped and this is causing them hardship, tick the box marked ‘Previous year manual payment recipient’ on the referral form and then go to step 19

Otherwise

• Go to step 3

• If none of the messages are shown, tick the ‘Initial request for payment adjustments’ box on the referral form and then go to step 4

• If there is no trace of the claim, go to step 4

• A message in the Household Notes field stating that Debt Management and Banking (DMB) have made a decision whether further assistance can be given to relieve hardship

Note: This assistance could be either full remittance or a further payment adjustment

• Explain that the maximum allowable amount of payment adjustment is already being made

• No further payment adjustments can be made

And

• There is no right of appeal against this decision

Then

• If the claimant wishes to take the matter further direct them to the Code Of Practice (COP) 1 ‘Putting things right when we make mistakes’. This provides the claimant with the information they need to make a complaint or dispute a decision. Take no further action

• A message in the Household Notes field stating that payment adjustments have been refused

• Explain the reason why additional payment adjustments cannot be made

And

• There is no right of appeal against this decision

Then

• If the claimant wishes to take the matter further, follow the guidance in the Secondary Hardship Call Type Process on the Tax Credit Adviser Guide

• A message in the Household Notes field stating that a payment adjustment has been applied to the case

• Tell the claimant the rates of recovery. Follow the guidance in the Secondary Hardship Call Type Process on the Tax Credit Adviser Guide

• A message in the Household Notes field stating that a secondary hardship referral has been passed to our overpayments team (DMB) for consideration

• Tell the claimant that their case is already being dealt with and that our aDMB will be in contact with them shortly

And

• No further action can be taken until DMB make a decision

• If the claimant wishes to take the matter further direct them to the Code Of Practice (COP) 1 'Putting things right when we make mistakes'. This provides the claimant with the information they need to make a complaint or dispute a decision. Take no further action

• A message in the Household Notes field stating that Secondary Hardship referral to DMB was declined as there were no exceptional circumstances. Ask if there has been any change in the claimant’s circumstances that would now be considered exceptional

• If there are new exceptional circumstances, make a note of these and follow the guidance in the Secondary Hardship Call Type Process on the Tax Credits Adviser Guide

• If there are no new circumstances

• Explain that the maximum allowable amount of payment adjustment is already being made

• No further payment adjustments can be made

• If the claimant wishes to take the matter further direct them to the Code Of Practice (COP) 1 ‘Putting things right when we make mistakes’. This provides the claimant with the information they need to make a complaint or dispute a decision

And then

• Take no further action

• Select ‘View’ from the options available. You will be taken to Function VIEW AWARD
   
• Enter the claimants NINO in the Key Entry Details screen
   
• Select the Latest checkbox
   
• Click on the [OK] button

• If there is no trace of the claimant, check that the NINO you have entered is correct and if it is not, amend it and try again

• If there is still no trace ask the claimant if they have an award notice that shows the NINO or reference number used on the computer

• If the claimant does not have this with them ask them to call back with the information and end the enquiry

• If you trace the claimant, go to step 5

• If the message ‘You are not authorised to access this case, please refer to the appropriate MU’ is displayed, go to step 6
   
• If the message ‘You are not authorised to access this case, please refer to the appropriate Security Liaison Unit’ is displayed, go to step 6
   
• If neither of these messages display, go to step 7

Then

• Advise the claimant to contact the office identified on their award notice (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: If the claimant lives in Great Britain and does not have their award notice to hand, tell the claimant to telephone either of the above numbers

• Take no further action

• The award is for Family or Baby elements only

Or

• The reduction in payments is as a result of compliance activity

Check this in the Award Summary screen

• Click on the [View Calculation] button. You will be taken to the View Calculation screen
   
• Click on the [View Taper Calcs] button. You will be taken to the View Taper Calculations screen
   
• For each of the entitlement periods listed in the top left of the screen check the ‘Tapered Ent’ column

• If a monetary value is shown for the ‘Family’ or ‘Baby’ elements and all other values are 0.00 in the current entitlement period, tick the box at 7 to 12 of the referral form and then go to step 8

• If a monetary value is shown for any other entries in the Entitlement column in the current entitlement period, go to step 9

• They are not entitled to a payment adjustment. As detailed in the leaflet COP 26 ‘What happens if we have paid you too much tax credit?’

• If the claimant accepts this decision, end the enquiry and go to step 21

• If the claimant does not accept this decision direct them to the COP 1 ‘Putting things right when we make mistakes’. This provides the claimant with the information they need to make a complaint or dispute a decision. Then go to step 21

• Select ‘Navigation’ from the toolbar menu
   
• Select ‘View Household Notes’ from the options available. You will be taken to Function VIEW HOUSEHOLD NOTES

And

• Go to the View Household Notes screen and check for any notes made by Compliance. If

• There are any Compliance notes, go to step 10

• There are no Compliance notes, click on the [Cancel] button and then go to step 11

Note: To see more details of the note, click on the entry in the Note Preview screen and then click on the [Details] button. To return to the View Household Notes screen, click on the [Cancel] button

• Telephone the local Compliance Manager whose details are recorded in the Household Notes field

• If there is no telephone number provided in the Household Notes field, trace and contact the relevant Claimant Compliance Team Managers following the guidance in Identifying Compliance Activity 

• Explain that you are dealing with a tax credits claimant who has requested a payment adjustment but there is evidence of compliance activity on the case
   
• Give them the claimant’s details and your contact details (your name, contact number and fax number) and ask them to fax through the appropriate statement

Notes:

1. The Compliance Manager will fax you a signed statement informing you if the reduction was or was not due to deliberate error or fraud. They will attempt to do this within one hour of your referral

2. This is not authorisation to make a payment adjustment

• If the entitlement has been reduced because of deliberate error or fraud

• Tick the Compliance box at section 7 to 12 of the referral form

• Advise the claimant that no payment adjustments can be made as outlined in the leaflet COP 26 ‘What happens if we have paid you too much tax credit?’

And, if the claimant wishes to pursue the matter further

• Advise them that you are acting on the instructions of the Compliance Manager. The claimant should discuss the matter with their Compliance Contact Officer if they wish to take the matter further

• Go to step 21

• If entitlement has not been reduced because of deliberate error or fraud, go to step 11

• They will be arranged, calculated and authorised by the TCO
   
• Any change of circumstances reported may affect the amount of payment adjustments they receive

Then

Go to step 12

• Reduced by 10% for claimants entitled to the maximum award of CTC and / or WTC
   
• Reduced by 25% for claimants entitled to CTC above the family element and  / or WTC below the maximum limit

For example: A claimant's payment is reduced from £100.00 per week to £30.00 per week and the claimant is entitled to the maximum CTC award. Their entitlement for the remainder of the award period is £80 per week. This is the amount that they would have been paid if they had not been overpaid earlier. In this case the maximum amount we would pay is £72.00 per week as this is a 10% reduction on their entitlement amount of £80.00 per week. Similarly, for a claimant with entitlement to a CTC element above the family element but less than the maximum award, using the same example the maximum we would pay is £60.00 per week as this is a 25% reduction on their entitlement amount of £80.00 per week. This is the amount that they would have been paid if they had not been overpaid earlier

Note: This is to ensure that some recovery is effected straight away. For more information on tapering awards, follow the guidance in Calculation Of An Award

Explain to the claimant

• Before an adjustment of tax credits can be made you must make sure that they understand the full effect of these payments on future payments of tax credits

Note: If a payment adjustment is made to the claimant it will be taken into account and will result in them receiving more tax credits than they are entitled to over the course of the tax year. Any overpayment will be collected from payments for next year

Then

• Go to step 13

• You will refer a request for a payment adjustment to the TCO

And

• The TCO will contact the claimant within a week wherever possible

Then

• Go to step 14

• Does not want to receive payment adjustments

• Tick the No box ‘Are payment adjustments still required’ at section 13 to 16 of the referral form

And then

• Go to step 21

• Wants to receive payment adjustments, but does not require immediate processing

• Tick the Yes box ‘Are payment adjustments still required’ at section 13 to 16 of the referral form

• Tick the No box ‘Claimant requires immediate processing’

And then

• Go to step 18

• Wants to receive payment adjustments, but insists on immediate processing

• Tick the Yes box ‘Are payment adjustments still required’ at section 13 to 16 of the referral form

• Tick the Yes box ‘Claimant requires immediate processing’

• Inform the claimant that this means that TCO will aim to process this request within 1 hour, and where successful their regular payments will increase from the next regular payment due, although the payment dates may change slightly due to reprofiling

Then

• Go to step 15

Note: If the request for immediate processing is sent to the TCO after 4:00pm, advise the claimant that you will send the paperwork to the TCO and that they should return the following day to finalise the request

Complete part D

Note: It must be completed clearly and include a fax and telephone number

• Fax the referral form to the TCO (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

• If there is any problem with the fax, telephone the TCO (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: You must only inform TCO if you are having problems faxing the referral form. Do not contact TCO to progress chase

And then

• Go to step 16

Note: Telephone numbers are for immediate processing only. Any other enquiries received on these numbers will be destroyed without being actioned. Under no circumstances must telephone numbers be given to claimants

• Determine whether or not a payment adjustment is appropriate
   
• Calculate the rate of any payment adjustment
   
• Set the payment adjustment percentage
   
• Provide a letter outlining the criteria under which the payment adjustments have or have not been authorised

And

• Let you have a decision as soon as possible, wherever possible within one hour

Note: This could take longer and depends on TCO resources and the number of requests received. You must advise the claimant accordingly and manage their expectations

Then

• Ask the claimant to return later (suggest at least an hour and a half) to finalise the request
   
• Use Function MAINTAIN HOUSEHOLD NOTES and record the action you have taken

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Then

• Go to step 17

• If immediate processing is not appropriate, they will advise you of the reason why and fax you a copy of the letter TC869

• Inform the claimant of the reason

And

• Provide them with the copy of the letter

Then if the claimant

• Accepts the decision not to adjust payments, take no further action

• Does not accept the decision not to adjust payments, inform them that there is no right of appeal against the decision not to adjust payments. If the claimant wishes to take the matter further direct them to the COP1 ‘Putting things right when we make mistakes’. This provides the claimant with the information they need to make a complaint or dispute a decision. Take no further action

• If a payment adjustment is appropriate, they will

• Fax you a letter TC868 Explaining the payment adjustment applied. You must give this letter to the claimant. Advise the claimant that they will receive a revised award notice with in a few days and their first revised payment in the usual way. Take no further action

• If TCO telephone to say that Payment Adjustment is not appropriate as the case is cross year recovery only, TCO will fax you a copy of the letter TC869. You must give this letter to the claimant. Inform the claimant of the cross year recovery rates following the guidance in Overview Of Hardship Claims And Overpayment Recovery

• Select ‘Navigation’ from the toolbar menu
   
• Select ‘Maintain Household Notes’ from the options available. You will be taken to Function MAINTAIN HOUSEHOLD NOTES
   
• Click on the [Add Note] button

And

• Record in brief the action you have taken

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

• For an ordinary referral with no immediate payment adjustment record the following

‘TCMZ Payment adjustment requested at (insert name of office) Enquiry Centre on DD/MM/YYYY’

Then

• Click on the [OK] button and go to step 19

• Accurately completed
   
• Signed
   
• Dated
   
• Shows the claimant’s name and NINO at the top of the referral form

And

• Has a telephone contact number

Then

• Go to step 20

Note: The TCO will return any referral forms to the originating office if any information is missing

And then

• Take no further action

‘TCMZ Payment adjustments refused at (Enquiry Centre Name) because

1. *Family element only
2. *Advice from Compliance
3. *Calculation shows no payment adjustment appropriate'

(*Delete as appropriate)

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes