Manually Adjusting Payments To Avoid Hardship - TCO Only (AG)

• An Enquiry Centre by fax requesting immediate processing, treat it as urgent. Telephone the Enquiry Centre back to confirm that the adjustment has been applied within the hour, wherever possible

• Copy the information from the front page of the Enquiry Centre referral form on to part 1 of the proforma and tick the 'Fax - immediate processing ' box to record the source of the referral

Then

• Go to step 2

• An Enquiry Centre by Taxpost Direct with an Enquiry Centre Adjust in year payments referral form

• If the ‘Initial request for a payment adjustment’ box is ticked

• Transfer the information from the front page of the Enquiry Centre referral form onto part 1 of the proforma

• Tick the 'Enquiry Centre - Taxpost' box to record the source of the referral

Then

• Go to step 2

• If the ‘Unhappy with the amount of the adjustment’ box is ticked on the referral form, go to step 6

• If the 'Claimant no longer requires adjustment' box is ticked on the referral form, go to step 6

• If the ‘Previous year manual payment recipient’ box is ticked on the referral form, go to step 23

• A Contact Centre in the Mailbox ‘Additional Payments’ Folder or in the Mailbox 'In Year Restriction' Folder

• Tick the ‘CC Referral’ box to record the source of the referral

Then

• Go to step 2

• A claimant in writing

• Tick the 'Letter from Claimant' box to record the source of the referral

Then

• Go to step 2

• A form TC648 for in year restriction

• Tick the 'Letter from a claimant' box to record the source of the referral

Then

• Go to step 2

• A referral on an In Year Adjustment Restriction spreadsheet

• Tick the 'referral from spreadsheet' box to record the source of the referral

Then

• Go to step 2

• A reply from Debt Management and Banking (DMB), follow the guidance in Secondary Hardship TCO Action On Receipt Of DMB Decision
   
• A form TC871 which is marked 'Exceptional Personal Circumstances' and has a form TC648 attached with details of the exceptional circumstances listed, follow the guidance in Secondary Hardship Referral Received By TCO

Note: If you receive a request for secondary hardship consideration, take one of the following actions

• If the secondary hardship request is from a claimant who has already received a payment adjustment or a letter stating that the manually adjusting payments to avoid hardship (MAPTH) process has been refused as the recovery is cross year only

• Follow the guidance in Secondary Hardship Referral Received By TCO

• If the secondary hardship request is from a claimant who received a manual payment adjustment to reduce cross year recovery in the previous tax year. Such a claimant will not already be in receipt of a payment adjustment in the current tax year, but the case should be forwarded to DMB for consideration, go to step 23

• If the secondary hardship request is from a claimant who is not already in receipt of a payment adjustment

• Treat it as a new request for a payment adjustment, and follow this guidance. Go back to the beginning of step 1

Note: When you access Function HOUSEHOLD ACCOUNT and a payment adjustment has already been made, the following warning message will display

‘In Year adjustment restriction is in effect. Click OK if you wish to continue’

• Click on the [OK] button to view the Household Account details for the claim

• Enter the claimant's NINO in the Key Entry Details screen
   
• Click on the [OK] button

Then

• Go to step 3

• If the message ‘You are not authorised to access this case, please refer to the appropriate MU’ is displayed, go to step 5
   
• If the message ‘You are not authorised to access this case, please refer to the appropriate Security Liaison Unit’ is displayed, go to step 5
   
• If there is no trace, check that you have entered the correct NINO, update the proforma at Part 1, Section 3 and then go to step 4
   
• If the message ’Complex Case’ is displayed, go to step 22
   
• If you trace the claimant

• Enter the claimant’s details on to the proforma

• Use Function VIEW HOUSEHOLD NOTES and go to the View Household Notes scree n to check for a note stating

‘TCMZ Final Hardship top up payment authorised on DD/MM/YYYY, R92TC No. XXXXXXX. There are no further payments due this financial year’ Where the date stated is in the previous tax year

• If this note is present, this case should be forwarded to DMB for further consideration, go to step 23

• If this note is not present, and

• If the referral is from an Enquiry Centre, go to step 12
   
• If the referral was on an In Year Adjustment Restriction spreadsheet, go to step 16

• If your referral is from another referral route, go to step 6

Note: If you have an Enquiry Centre referral you will already have ticked the proforma at step 1, go to step 12

• The payment adjustment request is from an Contact Centre or a claimant in writing

• Follow the guidance in Contacting The Claimant to obtain the correct NINO. When you have obtained the correct NINO, go to step 6

• You are unable to obtain the information you have requested from the claimant

• Record your attempts to obtain the information on the proforma

• Send the papers to storage. Follow the guidance in Preparing And Sending Documents For Storage

• Take no further action

• Follow the guidance in Unauthorised Access To A Claim

When you have completed this action

• Contact the claimant and advise them to contact the office identified on their award notice

• If the claimant does not have the award notice to hand provide them with the appropriate telephone number (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• Take no further action

• Click on the latest award version to highlight it
   
• Click on the [OK] button
   
• Select ‘File’ from the toolbar menu
   
• Select ‘Next’ from the options available
   
• Select ‘Household’ from the toolbar menu
   
• Select ‘Adjust in year payments’ from the options available
   
• Check the ‘% of Remaining Entitlement Authorised for Payment’ field to determine the % amount currently set

• If the % is blank or set to 0, click on the [Cancel] button and go to step 9

• If the % is set to anything other than blank or 0, click on the [Cancel] button and go to step 7

Note: Function ADJUST IN YEAR PAYMENTS is only accessible by using AMBS Overpayment Recovery Maintainer

• If the claimant no longer wants the payment adjustment to be applied, go to step 8
   
• If the claimant wants to increase the recovery to repay the overpayment more quickly

• Prepare and issue a free format letter to the claimant explaining the rate of recovery can not be increased and that they would have to send in a personal cheque to TCO to pay off an overpayment more quickly

• If the claimant wants the adjustment percentage changing, check if there has been a change of circumstances recorded since the payment adjustment was applied

To do this use Function VIEW AWARD

• Enter the claimant's NINO in the Key Entry Data screen

• Click on the [OK] button

• On the Select Award screen, check for an award with an issue date after the current adjustment was set

• If there is no later version of the award, go to step 17

• If there is a later version of the award, go to step 18

• Select ‘Household’ from the toolbar menu
   
• Select ‘Adjust in year payments’ from the options available
   
• Click on the [Reset %] button
   
• Click on the [OK] button
   
• Send the papers to storage. Follow the guidance in Preparing And Sending Documents For Storage

Then

• Go to step 19

Note: The claimant will not be entitled to a payment adjustment if the award is for Family or Baby elements only or the reduction of payments is as a result of compliance activity

• Enter the claimant’s NINO in the Key Entry Data screen
   
• Click on the [OK] button
   
• In the Select Award screen, click on the latest award to highlight it
   
• Click on the [OK] button. You will be taken to 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 taken to the View Taper Calculations screen

• If a monetary value is shown for the ‘Family’ or ‘Baby’ elements in the ‘Tapered Ent’ column and all other values are 0.00 in the current entitlement period

• Tick the box at Part 1 section 5 of the proforma
   
• Use Function VIEW HOUSEHOLD NOTES to check for a note stating

'Referred to TCO for in-year restriction'

• If this note is present, the case is an 100% case and does not require adjustment, go to step 19
   
• If this note is not present, go to step 17

• If a monetary value is shown for any other entries in the Entitlement column in the current entitlement period, go to step 10

• Click on the [Cancel] button twice to go back to the Award Summary screen

• Select ‘Navigation’ from the toolbar menu

• Select ‘View Household Notes’ from the options available

• In Function VIEW HOUSEHOLD NOTES, check for any notes made by Compliance. If

• There are any Compliance notes, go to step 11

• There are no Compliance notes, click on the [Cancel] button and then go to step 12

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

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

• If there is no telephone number provided in Household Notes, trace and contact the relevant Claimant Compliance Team (CCT) Manager. To find the relevant CCT Manager view the Claimant Compliance Contact List

• Explain to the Compliance Manager 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

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

Note: This is not authorisation to adjust tax credits payments

If

• The entitlement has been reduced because of deliberate error or fraud

• Tick the box at part 1, section 6 of the proforma
   

• Use Function VIEW HOUSEHOLD NOTES to check for a note stating

‘Referred to TCO for in-year restriction’

• If this note is present, as this is a referred to TCO for in-year restriction case you still need to restrict the recovery, go to step 12
   

• If this note is not present, go to step 17

• Any other type of compliance activity has taken place or entitlement has not been reduced due to deliberate error or fraud, go to step 12

• Use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Summary screen for the latest award
   
• Click on the [Schedule] button. You will be taken to the View Direct Payments Schedule screen
   
• Check the Amount recovered column and

• If an amount greater than zero is displayed in this column then cross year recovery has been applied. Tick the Yes box at part 1, section 8a of the proforma and then go to step 13

• If this column only contains zeros then no cross year recovery has been applied. Tick the No box at part 1, section 8a of the proforma and then go to step 13

• On the View Direct Payments Schedule screen, look for the date that regular payments have been reduced to a lower regular amount

• Make a note of the date in the Issued Date column of the first reduced regular payment and also the pay frequency of the regular payments

Note: Regular payments will fall at a set period of either 7 or 28 days apart

• Click on the [Postings] button. You will be taken to the View Award Period Postings screen

• Identify the first award posting where the regular payments have been reduced. This will be the date in the Posting Date column that corresponds to the date in the Issued Date column noted above

Note: Award postings have the description ‘Amended WTC / CTC Award’. Where there are two award postings one after the other, then the award has been re-profiled

• From this date check for an award posting where the claimant’s entitlement has dropped. To do this

• Work backward from the posting date as far as the frequency of regular payments, that is 7 or 28 days

• Look for award postings together. There will be a plus and a minus figure. Where the minus figure is greater than the plus figure, the award entitlement has dropped and in year adjustment has been applied

• If the award entitlement has dropped due to in year adjustment, update the proforma at part 1, section 9 and then go to step 14

• If the award entitlement has not dropped, continue to work backward through the postings. Look for posting types with the description ‘Manual Giro Payment WTC / CTC’. Do not work any further back than the first award posting of the current tax year

• If there are posting types of ‘Manual Giro Payment’ and there has been a re-profiling on the award, in year adjustment has been applied on the award. Update the proforma at part 1, section 9 and then go to step 14

• If there are no manual payment postings, look for evidence of posting corrections. To do this, click on the [Summary] button. You will be taken to the View Award Period Summary screen

• Click on the [HH Notes] button. You will be taken to the View Household Notes screen

• Check all the entries for the following message

‘Posting Correction XX/XX/XX’

• If this message is present, in year adjustment has been applied on the award. Update the proforma at part 1, section 9 and then go to step 14

• If there is no evidence of in year adjustment as outlined above

• Update the proforma at part 1, section 9
   

• Use Function VIEW HOUSEHOLD NOTES to check for a note stating

‘Referred to TCO for in-year restriction’

• If this note is present, you should BF the case for 48 hours to allow re-profiling and then start again at the beginning of this guidance

Note: If you have returned to this step having previously held the case in BF for 48 hours and there is still evidence of any in year adjustment, go to step 19

• If this note is not present
   

• If you have ticked ‘No’ for both section 8a and section 9 of the proforma, there is no cross year recovery and no in year adjustment taking place on the award, go to step 17
   
• If you have ticked ‘Yes’ for section 8a and ‘No’ for section 9, there is cross year recovery only, go to step 20

• If the award amount has reduced over the period of the award then the reduction in payment is due to an in year adjustment (there may also be cross year recovery as identified at step 12. Update the proforma at part 1, section 9 and then go to step 14

Use Function VIEW AWARD, go to the Award Summary screen and select 'Working Tax Credit' in the Tax Credit Type field

• If you are able to select ‘Working Tax Credit’ in the Tax Credit Type field

• Click on the [View Calculation] button. You will be taken to the View Calculation screen

• Select 'Working Tax Credit' in the Tax Credit Type field

• Click on the [View Taper Calcs] button. You will be taken to the View Taper Calculations screen

• Click on the entitlement period in the top box that the hardship claim falls under

• Check the Taper Amount column in the bottom box

• If there is no amount in the Taper Amount column for the Work element, the claimant is in receipt of maximum WTC. Tick the box at Part 1, Section 10 of the proforma to indicate that this is a Category A award and then go to step 16

• If there is an amount in the Taper Amount column for the Work element, go to step 15

• If you are unable to select ‘Working Tax Credit’ in the Tax Credit Type field

• Click on the [Cancel] button. You will be taken back to the View Calculation screen

• Select 'Child Tax Credit' in the Tax Credit Type field

• Click on the [View Taper Calcs] button. You will be taken to the View Taper Calculations screen

• Click on the entitlement period in the top box that the hardship claim falls under

• Check the Taper Amount column in the bottom box

• If there is no amount in the Taper Amount column for the Child element, the claimant is in receipt of maximum CTC. Tick the box at Part 1, Section 10 of the proforma to indicate that this is a Category A award and then go to step 16

• If there is an amount in the Taper Amount column for the Child element, there is neither maximum CTC nor maximum WTC for this award, go to step 15

• Select ‘File’ from the toolbar menu
   
• Select ‘Next’ from the options available
   
• Select ‘Household’ from the toolbar menu
   
• Select ‘Adjust in year payments’ from the options available

• If the award is a Category A, enter ‘90’ in the % of Remaining Entitlement Authorised for Payment field

• If the award is a Category B, enter ‘75’ in the % of Remaining Entitlement Authorised for Payment field
   
• If the referral was received on an In Year Adjustment Restriction spreadsheet, enter the percentage from the spreadsheet in the % of Remaining Entitlement Authorised for Payment field

For example: If the percentage to be applied from the spreadsheet is 25%, enter 75% in the % of Remaining Entitlement Authorised for Payment field

For example: If the percentage to be applied from the spreadsheet is 10%, enter 90% in the % of Remaining Entitlement Authorised for Payment field

• Click on the [Display Results] button and make a note of the approximate payment amount(s) shown
   
• Select ‘File’ from the toolbar menu and ‘Next’ from the options available

The following warning message will display

‘All entries will be lost for this session. Do you wish to proceed?’

• Click on the [Yes] button
   
• Select ‘Household’ from the toolbar menu and ‘View Account’ from the options available
   
• If the ‘Select Award’ screen displays, click on the latest award to highlight it and then click on the [OK] button
   
• Click on the [Postings] button. You will be taken to the View Direct Payments Postings screen
   
• Compare the approximate payment amounts shown in Function ADJUST IN YEAR PAYMENTS, to the recent payment amounts shown on the Postings screen for both CTC and WTC

• If the new payments shown are less than the recent payments, click on the [Cancel] button and then go to step 17

• If the new payments shown are more than the recent payments, you will need to go back to Function ADJUST IN YEAR PAYMENTS

• Click on the [Cancel] button to return to the ‘Function Menu’

Then

• Select ‘Household’ from the toolbar menu and ‘Adjust In Year Payments’ from the options available

• In the Key Entry Data screen, enter the NINO and then click on the [OK] button

• If the award is a Category A, enter ‘90’ in the % of Remaining Entitlement Authorised for Payment field

• If the award is a Category B, enter ‘75’ in the % of Remaining Entitlement Authorised for Payment field
   
• If the referral was received on an In Year Adjustment Restriction spreadsheet, enter the percentage from the spreadsheet in the % of Remaining Entitlement Authorised for Payment field

For example: If the percentage to be applied from the spreadsheet is 25% enter 75% in the % of Remaining Entitlement Authorised for Payment field

For example: If the percentage to be applied from the spreadsheet is 10% enter 90% in the % of Remaining Entitlement Authorised for Payment field

• Click on the [Display Results] button

• Click on the [OK] button

The following message will display

‘As a result of this processing any overpayment recovery will take longer. Do you wish to proceed’

• Click on the [Yes] button
   
• Use Function VIEW HOUSEHOLD NOTES to check for a note stating

'Referred to TCO for in-year restriction'

• If this note is present, go to step 19
   
• If this note is not present, continue with the rest of this step

If the request was received on an In Year Adjustment Restriction spreadsheet, go to step 19

If the request was for immediate processing, prepare the letter TC868

• Fax this letter back to the Enquiry Centre to be passed to the claimant, using the contact details that the Enquiry Centre provided
   
• Send the papers for storage. Follow the guidance in Preparing And Sending Documents For Storage and then go to step 19

If the request was not for immediate processing, check the date of the initial request. Where the date of the initial request is

• More than [5] working days ago, follow the guidance in Manually Backdating Payment Adjustment
   
• Less than [5] working days ago

• Click on the [OK] button

The following message will display

‘As a result of this processing any overpayment recovery will take longer. Do you wish to proceed’

• Click on the [Yes] button
   
• Prepare and issue letter TC868 to the claimant
   
• Send the papers for storage, following the guidance in Preparing And Sending Documents For Storage and then go to step 19

Note: Function ADJUST IN YEAR PAYMENTS is only accessible by using AMBS Overpayment Recovery Maintainer

Otherwise, for all other referrals

Prepare the letter TC869 and enter today’s date on the proforma at part 1, section 13. If the request was for

• Immediate processing, and was received from the Enquiry Centre by fax, telephone the Enquiry Centre to confirm your decision and fax the letter back to the Enquiry Centre using the contact details provided
   
• A payment adjustment and came from

• An Enquiry Centre by Taxpost

• A Contact Centre

Or

• A claimant by letter, post the letter TC869 to the claimant

Then

• Send the papers to storage. Follow the guidance in Preparing And Sending Documents For Storage

And then

• Go to step 19

• Re-work steps 14 and 15 to see if the change of circumstances has changed the category of the award
   
• If the category has changed, go back to step 16
   
• If the category has not changed, follow the guidance in Secondary Hardship Referral Received By TCO starting at step 8 to explain recovery types to the claimant

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

• Where an Adjust in year Payment % has been set, record the following message and then click on the [OK] button

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

• Where an Adjust in year Payment % has been set as a result of the referred to TCO for in-year restriction referral, record the following message and then click on the [OK] button

‘TCMZ – Adjust in year Payment % set to (insert % amount) because of Referral to TCO for in-year restriction case, no letter sent'

• Where an Adjust in year Payment % has been changed, record the following message and then click on the [OK] button

‘PM08 - Adjust in year Payments % changed to (insert % amount) TC868 issued DD/MM/YYYY’

• Where an Adjust in year Payment % request has been declined because the recovery was cross year only, record the following message and then click on the [OK] button

‘PM05 - Adjust in year Payment % request declined CYR only TC869 letter issued DD/MM/YYYY’

• Where an Adjust in Year payment % request has been declined as the case is family or baby element only and is as a result of a referred to TCO for in-year restriction referral, record the following message and then click the [OK] button

‘TCMZ – Referred to TCO for in-year restriction case no adjustment set as case is family and / or baby element only, no letter sent’

• Where an Adjust in year Payment % request has been declined as the estimated adjusted payment amount is less than the current payments and is as a result of a referred to TCO for in-year restriction referral, record the following message and then click on the [OK] button

'TCMZ Change to Adjust in year Payment % declined. Regular payments are higher than estimated adjustment amount. No letter sent'

• Where an Adjust in year Payment % request has been declined as the award is ceased, record the following message and then click on the [OK] button

'TCMZ Adjust in year Payment % request declined as award is ceased'

• Where an Adjust in year Payment % request has been declined for any other reason, record the following message and then click on the [OK] button

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

• Where a change to an Adjust in year Payment % request has been declined, record the following message and then click on the [OK] button

‘TCMZ Change to Adjust in year Payment % request declined TC869 letter issued DD/MM/YYYY’

• Where an in year restriction referral has been received and no in year adjustment has occurred, record the following message and then click on the [OK] button

'TCMZ - In year restriction request received, no restriction applied as no in year adjustment, no letter sent'

Then

• Take no further action

• Telephone the Enquiry Centre using the contact details supplied
   
• Inform them that the manually adjusting payments to avoid hardship process (MAPTH) is not appropriate as the case is cross year recovery only

Then

• Fax them a copy of the appropriate letter TC869

Where the referral was in writing or via the Contact Centre, MAPTH is not appropriate

• Prepare and issue the letter TC869 to the claimant

Then

• Go to step 21

‘TCMZ MAPTH not appropriate because case is Cross Year Recovery Only - TC869 Issued to [insert name of claimant]’

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

• The signal has been set as a workaround

• Enter the claimant’s details on to the proforma

• Tick the box to record the source of the referral

Then

• Go back to step 6

Note: If your referral was from an Enquiry Centre go to step 12 instead of step 6

• The signal is a genuine complex case

• Send all the documentation together by Taxpost to the European Economic Area (EEA) Team

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• Use Function MAINTAIN HOUSEHOLD NOTES and select the 'Payments' category to record the following

'MM09 COMPLEX CASE (TCXXX) redirected to European Economic Area Team'

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

• Complete form TC871. Ensure you tick the box on the form TC871 to indicate that relevant papers are attached

• Securely attach any correspondence and / or additional evidence that supports the claimant’s hardship to the form TC871

• Clearly write in red ink at the top of the form TC871 ‘Existing Case - for review’

• Send the form TC871 (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Payments’ category to record the following

‘TCMZ Existing secondary hardship case from previous tax year sent to DMB for further consideration’

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