Secondary Hardship Referral Received By TCO (AG)

To deal with a referral form or a request for secondary hardship, consider steps 1 - 13 below. The guide is presented as follows

Initial actionStep 1
Trace the claimSteps 2 - 5
Check to see if the case is cross year recovery onlySteps 6 - 7
Explain recovery rates to the claimantSteps 8 - 9
Refer to DMBSteps 10 - 11
Update Household NotesStep 12
Secondary hardship declinedStep 13


Go to top of page  Initial action

1If you have received
  • A letter from a claimant stating they are still unhappy with their rate of recovery and this is causing them hardship, go to step 2
  • A form TC648 from a Contact Centre stating that an DMB referral is not required as there is insufficient evidence of exceptional circumstances, go to step 13
  • A Secondary Hardship WAM referral form from a Contact Centre, go to step 10
  • A form TC871 which is marked 'Exceptional Personal Circumstances' and has a form TC648 attached with details of the exceptional circumstances listed, go to step 10
  • A DMB referral form TC871 marked 'Existing Case - for Review' by Taxpost, go to step 10
  • A DMB referral form TC871 from either TCO Customer Support Unit (CSU), TCO Director’s Complaint Team (DCT), TCO Appeals Team, TCO MP Hotline or Enquiry Centre (via Taxpost), go to step 10
  • If you have been referred to this guidance from the Manually Adjusting Payments To Avoid Hardship guidance, go to step 8

Go to top of page  Trace the claim

2Use Function VIEW AWARD to trace the claim
  • Enter the claimant's NINO in the Key Entry Data screen
  • Click on the [OK] button

Then

  • Go to step 3
3Take one of the following actions
  • 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. Go to step 4
  • If you trace the claimant, go to step 6
4If
  • You are unable to obtain the information you have requested from the claimant
  • Use Function MAINTAIN HOUSEHOLD NOTES to record your attempts to obtain the information

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

  • Take no further action
5If you are not authorised to access the case

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

Go to top of page  Check to see if the case is cross year recovery only

6Determine if the reduction in payment is because cross year recovery is taking place
  • 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
  • If an amount greater than zero is shown in this column, cross year recovery has been applied. Go to step 7
  • If this column only contains zeros, no cross year recovery has been applied. The case is in year adjustment only. Go to step 8
7Determine if there is an in year adjustment as well as cross year recovery
  • In the View Award Period Schedule screen, click on the [Postings] button. You will be taken to the View Award Period Postings screen
  • Identify the first award version of the current tax year. Look for postings with the description 'Provisional Award for WTC / CTC'
  • Compare the award amounts for any amended award postings (look for postings with the description 'Amended WTC / CTC Award') shown after this date to see if the claimant’s entitlement has reduced
  • If the award amount has not reduced over the period of the award, the reduction in payments is due to cross year recovery only. Go to step 10
  • If the award amount has reduced over the period of the award, the reduction in payment is due to an in year adjustment and cross year recovery. Go to step 8

Go to top of page  Explain recovery rates to the claimant

8The claimant will state that they are suffering hardship because of either an in year adjustment, or cross year recovery or a combination of both. Where the hardship is because of an in year adjustment only

An in year adjustment only

  • The payment adjustment will have been applied at a rate so as not to cause hardship

An in year adjustment and cross year recovery

  • The payment adjustment will have been applied at a rate so as not to cause hardship

And

  • The payment adjustment will also have halted the cross year recovery

Cross year recovery only

  • If the claimant is happy with the explanation, go to step 12
  • If the claimant is unhappy with the explanation, and still claims hardship
  • Make a note of any exceptional circumstances the claimant indicates are causing the hardship
  • Present the exceptional circumstances to your HO manager, who will consider the case and decide whether or not to refer it to DMB
  • End the call informing the claimant that you will ask your manager to consider the exceptional circumstances and that they will be contacted within 10 working days

Note: If you cannot contact the claimant via telephone, issue the letter TC870

Then

  • Go to step 9
9Present the exceptional circumstances information to your HO manager
  • If your HO manager
  • Authorises the exceptional circumstances for hardship, go to step 10
  • Does not authorise the exceptional circumstances, prepare and issue the letter TC873 and then go to step 12

Go to top of page  Refer to DMB

10Refer the case to DMB for consideration

If the referral is from

  • The MPs Hotline or DCT, mark the form TC871 at the top of it in red pen ‘Complaint Case’
  • Ensure the form TC871 is fully completed
  • Complete the Adjust in Year Payments proforma at part 2, section 13 and 14

Then

  • Go to step 12
  • A Contact Centre, CSU, TCO Appeals or an Enquiry Centre
  • Complete the Adjust in Year Payments proforma at part 2, section 13 and 14

Then

  • Go to step 11
  • A form TC871 which is marked 'Exceptional Personal Circumstances' or ‘Existing Case - For Review’
  • Ensure the form TC871 is fully completed

Then

  • Go to step 11
  • A claimant in writing
  • Fully complete the form TC871

Then

  • Go to step 11
11Securely attach copies of all correspondence or additional evidence to support the claimant’s hardship to the form TC871 ensuring you tick the box to indicate that the relevant papers are attached
  • Send the documents to DMB using Taxpost Direct (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Tax Credit Overpayment Unit

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

Note: All referrals marked 'Exceptional Personal Circumstances' must be sent in a separate Taxpost bag to other referrals

Then

  • Go to step 12

Go to top of page  Update household notes

12Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Payments’ category to 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

  • If the case has been referred to DMB and the referral was marked 'Exceptional Personal Circumstances', enter the following

‘TCMZ Secondary Hardship referral sent to DMB via Taxpost for consideration of exceptional personal circs’

  • If the case has been referred to DMB and the referral was marked ‘Existing Case - For review’, enter the following

‘TCMZ Secondary Hardship referral sent to DMB via Taxpost, existing case for review’

  • If the referral came from any other source, enter the following

’TCMZ Secondary Hardship referral sent to DMB via Taxpost’

  • If the case has not been referred to DMB and the manager declined the hardship, enter the following

’PM07 - Secondary Hardship declined by DMB. Letter issued’

  • If the claimant is happy with the explanation of recovery rates, enter the following

’TCMZ Secondary Hardship declined - (insert name of claimant) happy with recovery rates’

Then, once the relevant note has been entered

  • If the case has been referred to DMB, BF all the case papers and take no further action until DMB reply


Go to top of page   Secondary hardship declined

13Complete and send form TC873 to the claimant
  • Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Payments’ category to 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



Home|Main Contents|Manual Contents

Previous Page|Next Page|Top|Menu