Calculate And Remit An Overpayment - For Cases Suspended Before 30/10/06 (AG)

• An expired BF for a case which has been worked by the Suspended Overpayments Worklist team, go to step 2
   
• New correspondence,

• Use Function VIEW LINKED WORK ITEMS
   
• Enter NINO
   
• Select the Household that relates to the Dispute
   
• If no ‘Linked Work Items Found’ box appears, go to step 2
   
• If the linked work item is found, is the Work List Type showing as Suspended Overpayment

• No, go to step 2
   
• Yes, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
   
• If the case can be worked bf the case for 7 days
   
• If the case can not be worked refer to your TALLO to be set-aside
   
• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Debt Recovery’ category to record the following
   
• ‘ OD77 - ***DOP*** Case referred to the Suspended Overpayment Worklist Team for their action. BF until (xx / xx / xx). Grp (xx) Tm (xx)

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

• If there is already a message stating somebody else is dealing with the case, pass all the paperwork with a completed form TC648 to the person involved. Take no further action
   
• If there is a message stating

• ‘ OD04 ***DOP***Further corre received disputing overpayment, corre passed to group 'xx' to be linked with original dispute corre'

Then

• Go to step 4

• If there is no message

• Select the 'Debt Recovery' category to record the following

‘ OD08 *DOP* Under enquiry possible remission on Group XX. Date DD/MM/YY’

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 an Overpayments worksheet with the

• Claimant’s name
   
• Claimant’s NINO

• Complete an Overpayment Calculation sheet with the

• Claimant's name
   
• Claimant's NINO
   
• The amount of WTC and / or CTC overpayment on the computer

Then

• Calculate the overpayment

Calculation 1 – Check if the overpayment(s) falls into the £100 or less category, is a minus (-) figure, or a nil amount

To calculate this, use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Summary screen. For each tax credit, add together the

• Amount(s) in the Overpayment Outstanding
   
• Recovered from Other Awards

And

• Adjustments and Payment In fields

Then deduct

• Any amount in the Recovered from this Award field

And

• Any previous adjustment prior to suspension (see postings if unsure of any previous remittance amount)
   
• The amount left is the amount that should be recorded on the Overpayment Calculation sheet

Note: You must not print off the Overpayment Calculation sheet until you have completed all the boxes. This is because the sheet contains calculations that will have to be undertaken manually if the sheet is printed

• If the total amount of overpayment is

• £100.00 or less

And

• For tax year 2005 - 2006 or a later year

And

• The award is finalised

Then

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

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

• If the amount of overpayment is a minus figure or a nil amount, disregard this figure and use Calculation 2

Calculation 2

To calculate this, use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Summary screen. For each tax credit, add together the

• Amounts in the Direct Payments made to date
   
• PVE payments authorised to date

And

• The amount recovered from this award fields

Then deduct

• The amount in the Award Entitlement field
   
• The amount left is the amount that should be recorded on the Overpayment Calculation sheet

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

Then

• if you have received a referral form or letter from

• Debt Management and Banking (DMB) where the claimant questions direct recovery of an overpayment, go to step 3
   
• The claimant in writing, either in a letter or a completed form TC846, go to step 4
   
• The claimant in writing requesting a review of the disputed overpayment (DOP) decision, Follow the Guidance in Disputed Overpayment Reviews
   
• The claimant in writing, returning a completed form TC909, go to step 19
   
• An Enquiry Centre (EC) through Taxpost Direct or a Contact Centre (CC) on a WAM referral, go to step 4
   
• Compliance, through Taxpost Direct and they have determined that there is no action for them to take on the claim, go to step 4
   
• a claimant requesting an explanation of the overpayment, go to step 3

Note: If the claimant is disputing the overpayment and they state they have been declared bankrupt or sequestrated, work the dispute first

• States that the claimant requires an explanation of the overpayment. Follow the guidance in Explanation Of Overpayment – Referral Or Letter Received
   

• Does not state the claimant requires an explanation, go to step 5

Use Function MAINTAIN HOUSEHOLD NOTES to check if the following has been entered

• ‘TCMZ Explanation of O/P given over the telephone to Clmt 1/Clmt 2. O/P is on single*/joint* household for tax year 03-04*/ 04-05*/ 05-06*/ 06-07*. O/P reason is due to Compliance*/ Contra Error*/ Manual Payment*/ Incorrect Data Entry*/ Change of Circumstances*/ Renewal Termination*/ Misadvice*/ System Error (please specify)*/ PVE* (*delete as appropriate)’

• If the message has not been entered, go to step 5
   

• If the message has been entered, go to step 37

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Look at the relevant award period (see note 1 below) and make a note of

• The award period(s) on the Overpayment Calculation sheet and Overpayments worksheet (see note 2 below)

• The status of the award(s) on the Overpayments worksheet in the notes box

Notes:

1. The correspondence you have from the claimant should help you to determine the award period(s) they are disputing

2. You must not print off the Overpayment Calculation sheet until you have completed all the boxes. This is because the sheet contains calculations that will have to be undertaken manually if the sheet is printed

Then

• Go to step 6

• The reason for the overpayment
   
• Whether or not the overpayment was caused by HMRC error. Follow the guidance in Responsibilities Of HMRC And The Claimant and COP 26 Responsibilities

Note: If, whilst determining the reason for the overpayment you establish that an entry in Function MAINTAIN HOUSEHOLD NOTES has been made on the wrong award, you must transfer the note to the correct award and then delete it from the incorrect one

• Go to step 7

Use Function MAINTAIN HOUSEHOLD NOTES to check for the following entry that will indicate the case is an Isle of Manor Channel Islands case

‘ IM08 – IoM / CI check. TC980 issued to claimant and O/P for CY remitted where appropriate’

• If the entry is there, go to step 39
   

• If the entry is not there, go to step 8

• ‘TCMZ Cross Border – Family Supplement Case. European Economic Area Team - EEA IN (MU290697)’

• If the entry is there, pass the case and all the relevant paperwork to the European Economic Area (EEA) Team. Take no further action

Note: Your manager will provide you with these details

• If the entry is not there, go to step 9

• If the claimant has not made any telephone call(s), go to step 10
   
• If the claimant has mentioned having made telephone call(s)

• Refer the case for retrieval of all the telephone calls necessary to fully investigate the claimant’s enquiry
   
• BF the case until the call transcripts are received

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

• If after reviewing the call transcripts you establish that the telephone calls do not relate to the overpayment, make a note of this on the Overpayments worksheet and go to step 10
   
• If after reviewing the call transcripts you establish that the telephone call(s) may relate to the reason for the overpayment, make a note of this on the Overpayments worksheet and go to step 10

Note: If after considering the call transcripts you feel the claimant received incorrect advice, make a note of this on the Overpayments worksheet and consider the incorrect advice later in this guidance

• Use Function VIEW HOUSEHOLD NOTES to check all entries for any of the following messages

'TCMZ AP1 / 2 Accounting correction for event BPO BACS overpayment xx.xx.xx, xx.xx.xx £xxx.xx TC855A issued on xx/xx/xxxx Recon'

'TCMZ Posting Correction xx/xx/xx'

• If any of these messages are shown, the overpayment was caused by a contra error. Make a note of the monetary amounts listed in the message on the Overpayments worksheet as an overpayment caused by contra errors and then go to step 11

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

• If none of these messages are shown, use Function VIEW HOUSEHOLD ACCOUNT and go to the View Direct Payments Schedule screen to check the payment schedule for any duplicate entries for the same week

• If there are no duplicate entries, the overpayment was not caused by a contra error, go to step 11

• If there are duplicate entries, the overpayment was caused by a contra error, make a note on the Overpayments worksheet and then go to step 11

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

• Hardship Top-Ups made after 01/01/2004
   
• Any PVE Underpayments
   
• Any Additional Tax Credits Payments (ATCP)
   
• Any manual payment issued by an EC or TCO on or after 01/01/2004

Then

• Use Function VIEW HOUSEHOLD NOTES to see if there is an entry of a manual payment being requested and the date it was authorised

• If there are no manual payments recorded, go to step 12
   
• If there are manual payments recorded, make a note on the Overpayments worksheet of the dates and the amounts of the payments and then go to step 12

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the relevant award period noted on the Overpayments worksheet to highlight it
   
• Click on the [OK] button and then go to the View Award Period Posting screen
   
• Check for any manual payments. These can be identified as

• 'MGPW' for WTC payments

• 'MGPC' for CTC payments

• 'MGPM' for combined CTC / WTC payments

• If there are no manual payments, go to step 14

• If there are manual payments, make a note on the Overpayments worksheet of the date when it was issued and posted and the amounts of WTC and CTC. Go to step 13

• If the issue date and the posting date of the manual payment are the same

• Pass the case to your Technical Advice Line Liaison Officer (TALLO)
   

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

• If the overpayment was caused by a manual payment issued prior to 01/01/04, but there was a delay of no more than 30 days from the issue date to the date the manual payment was posted, the overpayment was not caused by HMRC failing to meet one of their responsibilities, go to step 14

• If the overpayment was caused by a manual payment issued prior to 01/01/04, but there was a delay of more than 30 days from the issue date to the date the manual payment was posted, the overpayment was caused by HMRC failing to meet one of their responsibilities, make a note of this on the Overpayments worksheet and then go to step 14

Note: If during the course of your investigation you identify that any cashcheques have been posted to the wrong year or wrong account, follow the guidance in Incorrectly Posted Cashcheques

Note:Any manual payments issued by an Enquiry Centre on or after 01/01/04 are fully recoverable because from that date the claimant signed a declaration telling them that the payment may cause an overpayment. You will be able to spot these by checking for entries in Function MAINTAIN HOUSEHOLD NOTES regarding payments from an Enquiry Centre

Check to see if a backdating payment caused the overpayment

Use Function VIEW HOUSEHOLD NOTES to see if there is an entry of a backdating payment being requested and the date it was authorised

• If there is no backdating payment recorded, go to step 16
   

• If there is a backdating payment recorded

• Make a note on the Overpayments worksheet of the date and the amount of the payment

Then

• Go to step 15

Use Function VIEW HOUSEHOLD ACCOUNT

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

• Select the All checkbox
   

• Click on the [OK] button. You will be taken to the Select Award screen
   

• Click on the relevant award period noted on the Overpayments worksheet to highlight it
   

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

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

• Check for any manual payments that match the backdating payment you noted at step 13. These can be identified as

• 'MGPW' for WTC payments
   

• 'MGPC' for CTC payments
   

• 'MGPM' for combined CTC / WTC payments

• If there are no manual payments that match the backdating payment you noted at step 14, go to step 16
   

• If there are manual payments that match the backdating payment you noted at step 14, make a note on the Overpayments worksheet of the date when it was done and the amounts of WTC and CTC and then go to step 16

Note: Backdating payments should not be posted to the computer and are therefore always due to HMRC failing to meet one of their responsibilities. They are always non-recoverable

Then

• Go to step 17

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the Period checkbox
   
• Enter '06-04-xxxx– 05-04-xxxx' in the Period field for the award period
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the first version of the relevant award to highlight it
   
• Click on the [OK] button. You will be taken to the Award Summary screen
   
• Make a note of the following on the Award Version Information Form

• Date notice issued

• WTC award amount

• CTC award amount

• Click on the [Applicant Details] button. You will be taken to the Applicant and Household Income Details screen
   
• Make a note of the following on the Award Version Information Form for both claimants

• Hours worked

• Income declared

Note: You can find this information in the Applicant 1 and Applicant 2 boxes

• Click on the [Qualifying Details] button. The Qualifying Details screen will display
   
• Make a note of the following on the Award Version Information Form for both claimants

• Any qualifying details (other than hours and income)

• Click on the [Qualifying Children] button, if available. The Qualifying Children and Young People screen will display
   
• Make a note of the following on the Award Version Information Form for both claimants

• Number of children

• Ages of children

• Number of disabled children

• Number of disabled children receiving the Highest Care Component of DLA

• Number of children in approved childcare

• Approved childcare costs

• Return to the Award Summary screen

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

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

• Make a note of the date in the Ent Per End column and the days each Element was paid in the No. Paid column on the Award Version Information Form

Note: Where childcare has been claimed on an award, you will also need to click on the [View Childcare] button as well to obtain the correct details

• Cancel out of this award and select the next version of the award. Continue to note all the details of each version of the award on the Award Version Information Form

Then

• Compare the details of each version

Notes:

1.       Establish if HMRC and the claimant have met their responsibilities. Follow the guidance in COP 26 Responsibilities

Example 1: The details of 4 children instead of 2 have been captured. In this example, the claimant would have received an award notice with the incorrect details and higher payments than expected. The claimant must inform HMRC promptly if any details are not recorded correctly
 

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

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

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

• If you decide that the overpayment was not caused by incorrect data entry, go to step 18

• If you decide that the overpayment was caused by incorrect data entry, make a note of this on the Overpayments worksheet and then go to step 18

Use Function VIEW AWARD

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the Period checkbox
   
• Enter '06-04-xxxx– 05-04-xxxx' in the Period field for the award period
   
• Click on the latest version of the relevant award to highlight it
   
• Select 'Navigation' on the toolbar menu
   
• Select 'View Application' from the options available. You will be taken to the Application Summary screen in Function VIEW APPLICATION
   
• You will now see the ‘Claim Version’ that created the award
   
• Click on the [VH] button. You will be taken to the View Application History screen
   
• Go to the Applicant 1 screen
   
• Click on the [Versions] button. You will be taken to the Select Application Version screen
   
• Establish whether the latest claim version is correct. To do this

• Record the date of the latest claim version on the Application History Information Form

• Click on the latest claim version to highlight it

• Click on the [OK] button

• Select 'History' on the toolbar menu

• Proceed to check all of the signals history for claimant 1, claimant 2 and any children, if appropriate and make a note of all the details on the Application History Information Form

Note: You are looking for overlapping history for any of the signals and / or a gap in history of less than 7 days in work history. For example, if you see in the History for Hours worked

Then

• Go to step 19

• Click on the [Versions] button. You will be taken to the Select Application Version screen
   
• Record the date of the previous claim version on the Application History Information Form
   
• Click on the previous claim version to highlight it
   
• Click on the [OK] button
   
• Select 'History' on the toolbar menu
   
• Proceed to check all of the signals history for claimant 1, claimant 2 and any children, if appropriate and make a note of all the details on the Application History Information Form
   
• Repeat the above process until you have checked the history for all versions of the claim, including the initial version

Then

• Go to step 20

• If the change of circumstances was applied correctly, go to step 21
   
• If the change of circumstances was applied incorrectly and the details are still incorrect, note the details on the Overpayments worksheet and then go to step 36
   
• If the change of circumstances was applied incorrectly, but it has since been corrected, note the details on the Overpayments worksheet and then go to step 21

• Use Function MAINTAIN HOUSEHOLD NOTES to check if there is an entry relating to a change of circumstances being applied late

• If there is an entry, make a note of the date on the Overpayments worksheet and then go to step 24

• If there is no entry, go to step 22

• Use Function VIEW APPLICATION
   
• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Application Version screen
   
• Make a note of the date in the Received Date field that is after the date the change of circumstances should have been applied

Note: This will give you the date when the change of circumstances was processed

Then

• Check the claimant’s statement on form TC846 or the letter to see if they have provided the date they reported the change of circumstances

• If the claimant has not provided a date, go to step 23
   

• If the claimant has provided a date, go to step 24

Contact the claimant by telephone for the details of the date they reported a change of circumstances. Follow the guidance in Contacting The Claimant

• If you are able to contact the claimant by telephone and obtain the information, go to step 24
   

• If you are unable to contact the claimant by telephone

• Issue form TC909 to request the information you need
   

• BF the case in your BF run for 14 days
   

• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Debt Recovery’ category and record the following

‘TCMZ ** DOP**UTC TC909 issued on XX/XX/XX  by XXXXX (Officers name). Grp XX/XX’

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 you receive a reply within the 14 day BF period, go to step 24
   

• If you have not received a reply within the 14 day BF period
   

• Send a manual reminder form TC609
   

• BF the case in your BF run for a further 14 days
   

• Use Function MAINTAIN HOUSEHOLD NOTES to record the issue of the manual reminder form TC609

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

Note: If you have not received a reply 14 days after the issue of a reminder, attempt to contact the claimant by telephone one more time to obtain the information you need. Follow the guidance in Contacting The Claimant. Then whether you receive the information or not, go to step 24

• Obtained the information you need

• Use Function MAINTAIN HOUSEHOLD NOTES to check the date when the claimant reported the change of circumstances to the Tax Credit Office ( TCO)
   
• Make a note of the following on the Overpayments worksheet in the notes box
   
• Any other entries, relating to the change of circumstances stating that the claimant has contacted the TCO again

And

• Any entries relating to the TCO not taking any action to process the change

• If you can establish that it took more than 30 days from the date the claimant reported the change of circumstances to the change being processed, HMRC has failed to meet one of their responsibilities. Make a note of this on the Overpayments worksheet and then go to step 25

• If the overpayment was not caused by applying the change of circumstances late, go to step 25

• Not obtained the information you need to confirm that it took more than 30 days from the date the claimant reported the change of circumstances

• Make a note of this on the Overpayments worksheet

Then

• Go to step 25

‘TCMZ FTA x 2 ceased’

Or

‘TCMZ Failed to attend NINO interview’

• If there is an entry, check if the overpayment

• Has occurred because the payment was made under a temporary reference number and the claimant failed to attend the identification interview. The overpayment was not caused by an HMRC error and will always be recoverable. Go to step 38

Note: The claimant is required to attend an identification interview before a NINO can be allocated

• Has occurred because payment was made under a temporary reference number and the claimant attended the identification interview, but was not given a NINO. The overpayment was caused by HMRC failing to meet one of their responsibilities. Make a note of this on the Overpayments worksheet and then go to step 39

• If there is no entry, the overpayment was not caused by the claimant not having a NINO, go to step 26

• Use Function VIEW S17 DETAILS
   
• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button

• If you are taken to the Select S17 Household screen, click on the household that the overpayment is being disputed on to highlight it and then click on the [OK] button. You will be taken to the Select S17 Period screen

Note: Use the information in the correspondence, including the date it was received to help you decide which household to select. Where a claimant is disputing the termination of their provisional payments, the household start date will be before the tax year the provisional payments were made for

• If you are taken straight to the Select S17 Period screen, click on the finalised award which has caused the dispute to highlight it and then click on the [OK] button

Note: Use the information in the correspondence, including the date it was received to help you decide which award the claimant is disputing. If the claimant is disputing the termination of their provisional payments, click on the finalised award for the period directly before the tax year the provisional payments were paid for

• Check if the Terminated signal is set

Note: If a signal is set, the Signals screen will automatically display

• If the signal is set, go to step 29

• If the signal is not set, go to step 27

• Does the Status field show ‘No Entitlement’ for the tax year following the award that has been finalised

Note: The Status field is found on the left-hand side of the screen about half way down. Do not use the Status shown in the Declarations box

• Yes, the claim has not been terminated as part of renewals processing. Go to step 30

• No, go to step 28

• Check if any of the award versions for the claim you are working are ‘Statement of Account’ (SOA)

• If one or more of the award versions are SOA, go to step 29

• If there is no SOA award version, the claim has not been terminated as part of renewals processing. Go to step 30

Use Function VIEW S17 DETAILS and go to the Current Position screen to check the status of the claim. Does the Status field show ‘Terminated Compliance’

Note: The Status field is found on the left-hand side of the screen about half way down. Do not use the Status shown in the Declarations box

• Yes, make a note on the Overpayments worksheet and then follow the guidance in Managing Correspondence Identified As Renewals Terminated. If you need to restore the claim, use Function VIEW HOUSEHOLD NOTES to check if there are any entries that confirm that the claim was ‘Compliance Terminated’

• If there are no entries in Household Notes and you noted that the Status field showed the case was ‘Terminated Compliance’, refer the case to your Technical Advice Line Liaison Officer (TALLO) for them to check the case
   

• If there are entries in Household Notes and you noted that the Status field showed the case was ‘Terminated Compliance’, contact the Compliance Team who will tell you whether you can proceed with the DOP process

• If they tell you that you can continue with the DOP process, go to step 30

Note: This action will be managed locally and your manager will be able to give you details of any BF arrangements that may be required

• If they tell you that you cannot continue with the DOP process
   

• Complete the stencil Disputed Overpayment Compliance Summary
   

• Send the stencil, with all the relevant paperwork by Taxpost Direct (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• Wait for a reply

• No, the claim may have been terminated as a result of renewals processing. Follow the guidance in Managing Correspondence Identified As Renewals Terminated

• If you have restored the claim, go to step 55
   

• If you have referred the claim to Operational Strategy Team (OST) for restore by the IT provider, BF the case for 1 week and then check again to see if the case has been restored

• If the case has been restored, go to step 55
   

• If the claim has not been restored after 1 week, BF for a further week and then check again

• If the claim does not require a restore, go to step 30

Note: Before continuing with this guidance you must ensure that you have details of what the misadvice was, who gave it, and, on what date. Contact the claimant if necessary to clarify

• If the claimant does not state they received incorrect advice, go to step 32
   
• If the claimant states they were given misadvice

• Use Function VIEW AWARD to calculate the amount of the overpayment due to misadvice

• Go to the Select Award screen and click on the award version affected by the incorrect advice to highlight it

• Click on the [OK] button. You will be taken to the Award Summary screen

• Make a separate note of the total award amounts for WTC (A) and CTC (A1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

• Return to the Select Award screen and click on the award version in which the information was corrected to highlight it

• Click on the [OK] button. You will be taken to the Award Summary screen

• Make a separate note of the total award amounts for WTC (B) and CTC (B1) for that award on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

• Deduct the correct award amounts of WTC (B) and CTC (B1) from the incorrect award amounts for WTC (A) and CTC (A1)

• Divide the separate figures for WTC and / or CTC by the number of days in the award period

Notes:

1.       There are a maximum of 366 days in the award periods for the years 2003-2004 and 2007-2008

2.       If entitlement starts or finishes part way through the tax year, the award period would start or finish from the date the entitlement does

To establish the number of days in the award period, go to the View Elements screen in Function VIEW AWARD. The number of days in the ward period will be displayed underneath the Days column

To check the entitlement period, see the Period covered by this notice field on the View Award Summary screen in Function VIEW AWARD

• Multiply the figures for WTC and / or CTC by the number of days from the award start date to the date the award was corrected

Note: The number of days should be no more than 365 (366 for 2003 / 04 and 2007 / 08). If the award was corrected after the end of the award period, you must only calculate the number of days to the end of the award period. Make a separate note of the amount of the overpayment for WTC and / or CTC on the Overpayments worksheet and the Overpayment Calculation sheet for each tax credit

Then

• Go to step 31

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

• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
   
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000) Establish what the misadvice was and who gave it. If the claimant states the misadvice was given by

• An Enquiry Centre or TCO use Function VIEW HOUSEHOLD NOTES to check all entries for evidence to confirm that the claimant received incorrect advice
   
• A Contact Centre, refer the case for retrieval of all the telephone calls the claimant made to the CC. BF the case until the call transcripts are received

If the tax year you are working is 2006 / 2007 or a later year and

• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000) Establish what the misadvice was and who gave it. If the claimant states the misadvice was given by

• An Enquiry Centre or TCO use Function VIEW HOUSEHOLD NOTES to check all entries for evidence to confirm that the claimant received incorrect advice
   
• A Contact Centre, refer the case for retrieval of all the CMA records BF the case until the CMA printouts are received

• (This text has been withheld because of exemptions in the Freedom of Information Act 2000) Establish what the misadvice was and who gave it. If the claimant states the misadvice was given by

• An Enquiry Centre or TCO use Function VIEW HOUSEHOLD NOTES to check all entries for evidence to confirm that the claimant received incorrect advice
   
• A Contact Centre, refer the case for retrieval of all the telephone calls the claimant has made BF the case until the call transcripts are received

Notes:

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

2. This call retrieval action is managed locally and your manager will be able to give you details of how to make the referral for the telephone call retrieval and how long to BF the case for

• If after reviewing the entries in Household Notes and / or the telephone call transcripts you consider that the overpayment(s) was not caused by the claimant receiving incorrect advice. Make a note on the Overpayments worksheet and then go to step 32

• If after reviewing the entries in Household Notes CMA Records and / or the telephone call transcripts you consider that the claimant received the wrong advice and that their action in following that advice has caused the overpayment, then HMRC failed to meet their responsibilities. Make a note of this on the Overpayments worksheet and then go to step 32

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

• If there is no entry relating to a n EARS, TT or Vantive, go to step 33
   
• If there is an entry relating to a n EARS, TT or Vantive, pass the case with the relevant details to your Technical Advice Line Liaison Office (TALLO) for them to check the case

• If the EARS, TT or Vantive relates to the overpayment, your TALLO will hold the case to obtain further advice

• If the EARS, TT or Vantive has no impact on the overpayment, go to step 33

• ’YP02- PVE adjustment of £ XXX.XX held covering period xx/xx/xxxx to xx/xx/xxxx in tax year xxxx due to overpayment of tax credits by (employer 's name) . (Vantive number)’

• If the entry is there, go to step 35

• If the entry is not there, go to step 34

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the relevant award to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Note the figure in the PVE Authorised to date column
   
• Click on the [Schedule] button. You will be taken to the View Direct Payments Schedule screen
   
• Click on the [View PVE] button. You will be taken to the View PVE Payments Schedule screen
   
• Determine whether any of the dates in the Start Date and End Date fields duplicate or overlap each other

Notes:

1. Consider all the liability periods shown, irrespective of whether these are the same or different employers

2. Do not consider any period where the Tax Credit Type column shows 'WTC ADJ' as this is a legitimate PVE adjustment and not an overlapping or duplicate liability period

• Determine if the amount in the PVE Authorised up to today field in the View Award Period Summary screen equals that shown in the Amount Authorised column in the View Direct Payment Schedule screen

• If there are dates that duplicate or overlap, it is likely that the overpayment has been caused by duplicate or overlapping PVE liability periods. Pass the case and all relevant paperwork to your TALLO and then go to step 56

• If the PVE payments in the PVE Authorised up to today field in the View Award Period Summary screen do not add up to the amount in the Amount Authorised column in the View Direct Payment Schedule screen, the overpayment has been caused by PVE payments, go to step 35

• If there are no dates that duplicate or overlap, the overpayment has not been caused by duplicate or overlapping PVE liabilities, go to step 37

Then

• Go to step 56

• Corrective action needs to be taken

• If you need any further information to correct the claim , contact the claimant by telephone for the information. Follow the guidance in Contacting The Claimant

• If you are unable to contact the claimant by telephone, issue form TC909 and BF the case for 14 days
   

• Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Debt Recovery’ category to record the following note

‘OD36 ***DOP***TC909 issued to Clmt 1 / 2 further information required’

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 you have not received a reply within the 14 day BF period, send a manual reminder (form TC609) and BF the case in your BF run for a further 14 days
   

• Use Function MAINTAIN HOUSEHOLD NOTES to record the issue of the manual reminder (form TC609)

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

• When you have all the information you need, reinstate any overpayment recovery. Follow the guidance in Reinstate Overpayment Recovery - For Cases Suspended Before 30/10/06
   

• When any recovery has been reinstated, correct the award. Follow the relevant guidance in Changes
   

• Issue form TC911 to the claimant with a Code Of Practice 26 (COP 26) ‘What happens if we have paid you too much tax credit?’ and form TC846 ‘Request to reconsider recovery of overpaid tax credits’ to the claimant

Then

• Go to step 56

• No corrective action is required, go back to step 21 to continue your investigation of the overpayment

• If the reason for the overpayment was because the claimant submitted an incorrect claim due to a genuine mistake and could have reasonably believed their award was correct

Examples of where notional entitlement may / may not be appropriate

• Refer the case to the Case Management Team (CMT)
   
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

• If you decide the overpayment is recoverable, go to step 38
   
• If you decide the overpayment is non-recoverable, does this overpayment run in / run on to other years

For example, has a change of circumstances been applied incorrectly creating an overpayment in more than one year

• Yes, you will need to investigate any overpayment in the other year(s), go back to step 2
   
• No, go to step 39

• If you decide the overpayment is partially recoverable, go to step 37 first and then go to step 39

Note: If the reason was one of the following, you will have already noted this on the Overpayments worksheet. These reasons do not need to be considered under the  Code Of Practice 26 (COP 26) Responsibilities as they are always fully recoverable

• Hardship Top-Ups made on or after 01/01/2004
   
• Any PVE Underpayments
   
• Any Additional Tax Credit Payments (ATCP)
   
• Any manual payment issued by an Enquiry Centre or TCO on or after 01/01/2004

• That the overpayment is considered to be recoverable

And

• Note the reason son the Overpayments worksheet

Note: All cases where HMRC has failed to meet its responsibilities but the overpayment is not being remitted because the claimant also failed to meet their responsibilities, must be recorded on the relevant Remissions database under remission type ‘Recoverable Failed Responsibilities’

Then

• Go to step 53

• That the overpayment is considered to be non-recoverable

And

• Note the reason s

Note: Action will be taken to remit the portion of the overpayment that was due to HMRC failing to meet one of their responsibilities or the whole of the overpayment, as appropriate

Note: When carrying out a partial remission, all cases where both HMRC and the claimant have failed to meet their responsibilities, the amount that is being recovered must be recorded on the relevant Remissions database under remission type ‘Recoverable Failed Responsibilities’

For example: The claimant has been overpaid £100 caused by Official Error. Of this £40 is non recoverable and £60 is recoverable because the claimant also failed to meet their responsibilities. You will make a partial remission of £40 and record it as a remission on the database. You would also record the £60 on the database under remission type ‘Recoverable Failed Responsibilities’

Then

• Go to step 40

Check for Compliance activity, follow the guidance in Identifying Compliance Activity

• If there is no Compliance activity or Compliance do not want the claim, go to step 42
   

• If there is Compliance activity or Compliance want the claim, go to step 41

Note: If you have any suspicions of fraudulent activity on the case you are working, and there is no current compliance activity, then follow the guidance in Identity Fraud to refer the case to Claimant Compliance for further investigation

Send any paperwork to the Compliance team

• Complete the stencil Disputed Overpayment Compliance Summary
   

• Send the stencil, with copies of all the relevant paperwork (form TC846 or letter) by Taxpost Direct (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
   

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

‘TCMZ***DOP*** Overpayment enquiry forwarded to Compliance, by xxxx Grp xx/xx *’

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, when you receive the stencil back from Compliance

• Take note of the Compliance summary provided on the stencil
   

• Go to step 42

• Yes and the award is still open, go to step 43

• Yes, but the award is closed, for example the current year award has Ceased or Terminated, go to step 46

• No. You are dealing with an overpayment in a previous year, go to step 46

Use Function VIEW HOUSEHOLD ACCOUNT

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the relevant award that you have been looking at to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Check the Direct Payments still to be made field to see if the claimant has any WTC and CTC payments still to be made

• If there are no further payments to be made, go to step 44

Note: If no further payments are to be made, the in year recovery has reduced the payments to nil so that most or all of the overpayment has been recovered. If payments are continuing, the in year recovery has only reduced the payments to a smaller amount in order to fully recover the overpayment in this year

• If there are further payments to be made, go to step 45

Notes:

1. If the award has one tax credit with payments still to be made and the other tax credit has no payments to be made, you will need to go to both steps. For example, if there are no WTC payments still to be made, go to step 44, then if there are still CTC payments to be paid, go to step 45

2. The Direct payments still to be made column may show nil for both WTC and CTC

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the Period checkbox
   
• Enter '06-04-xxxx to 05-04-xxxx (insert relevant years at xxxx)' in the Period field
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Starting with the latest award, work down the list of cases with an issue date to identify the version where the regular payments have reduced to nil. Click on that version to highlight it
   
• Click on the [OK] button. You will be taken to the Award Summary screen
   
• Click on the appropriate award in the Tax Credit Type box (CTC and / or WTC) to highlight it

Note: If the amount in the Tax Credit Type field is 0.00, ignore this tax credit and click on the award in Tax Credit Type box that has an amount recorded. If both tax credits have an amount recorded, you will need to do a separate calculation for each tax credit

• Click on the [Payment Details] button. You will be taken to the Payment Details screen for the appropriate tax credit
   
• Check if any payments have been set up on this award. If the Payment Details box is blank, then no payments have been set up on this award
   
• When you have identified the relevant award, click on the [Cancel] button. You will be taken back to the Award Summary screen

Note: If only provisional payments for the next tax year are shown, treat this as there being no payments set up for the current award

• Click on the [View Calculation] button. You will be taken to the View Calculation screen
   
• Make a note of the date in the Version Dated field on the Calculation of In Year Adjustment sheet. This is the effective date of the award (A)
   
• Click on the [Cancel] button. You will be taken back to the Award Summary screen
   
• Click on the [Cancel] button. You will be taken back to the Select Award screen
   
• Click on the latest award for the relevant year with an issue date to highlight it
   
• Click on the [OK] button. You will be taken to the Award Summary screen
   
• Make a note of the amount in the Total Entitlement field for the tax credit for the year (B) on the Calculation of In Year Adjustment sheet
   
• Divide the amount in the Total Entitlement field for the year by the number of days in the award (round up to the nearest whole pence) (C)

Note: For most years the number of days in the award period will be 365, but in some cases it could be less depending on when the award started. If the award did not start on 06/04/xxxx, count the number of days between the start date of the award (include the start date as day 1) and the end of the tax year

• Click on the [View Calculation] button. You will be taken to the View Calculation screen
   
• Click on the [View Elements] button. You will be taken to the View Elements screen
   
• Make a note of the number of days from and including the effective date (A) and the date in the Ent Per End field (D) on the Calculation of In Year Adjustment sheet
   
• Multiply (C) and (D), to determine the amount adjusted in year (E) (round up to the nearest pence)

Then

• Use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Summary screen for the relevant year
   
• Make a note of the total amounts in the Overpayment Outstanding field, Payments In field and Recovered from Other Awards field taking off any amount recorded under Recovered from this Award for that tax credit (F) on the Calculation of In Year Adjustment sheet
   
• Add together (E) and (F) to determine the total notional overpayment amount for that tax credit

Then either

• Calculate the in year adjustment amount of the overpayment for the other tax credit

Or

• Calculate the Finalised, Ceased or Terminated award

Note: If the case was Ceased or Terminated, you must use the computer overpayment figure

Then

• Go to step 53

• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the Period checkbox
   
• Enter '06-04-xxxx - 05-04-xxxx (insert relevant years at xxxx)' in the Period field
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Work down the list of cases with an issue date and locate the award version with the maximum award in the relevant tax year
   
• Make a note of the start date shown in the Period covered by this notice field (A) on the Calculation of In Year Adjustment sheet

Note: If the claimant has entitlement to both tax credits, you will need to do a separate calculation for each tax credit to calculate the overpayment amount. It does not matter which order you do them in

• Go to the Award Summary screen and make a note of the amount in the Total Entitlement field for the tax credit for the year (B) on the Calculation of In Year Adjustment sheet
   
• Click on the appropriate award in the Tax Credit Type box to highlight it
   
• Click on the [Payment Details] button. You will be taken to the View Payment Details screen
   
• Check the amount of the regular payment in the Payments Type field
   
• Click on the [Cancel] button. You will be taken back to the Award Summary screen
   
• Click on the [Cancel] button. You will be taken back to the Select Award screen
   
• Continue down the list until you have identified the award version where the payments have reduced. Click on this version to highlight it
   
• Click on the [OK] button. You will be taken to the Award Summary screen
   
• Click on the appropriate award in the Tax Credit Type box (CTC and / or WTC) to highlight it
   
• Click on the [Payment Details] button. You will be taken to the View Payment Details screen
   
• Check the Payments Type field to see if the payments have reduced

Note: You are looking for the reduction in payments that triggered the dispute from the claimant

• Click on the [Cancel] button. You will be taken back to the Award Summary screen
   
• Click on the [View Calculation] button. You will be taken to the View Calculation screen
   
• Make a note of the date in the Version Dated field on the Calculation of In Year Adjustment sheet. This is the effective date of the award (C)
   
• Click on the [Cancel] button. You will be taken back to the Award Summary screen
   
• Make a note of the amount in the Total Entitlement field for the tax credit in the year (D) on the Calculation of In Year Adjustment sheet
   
• Count the number of days from and including (A) up to, but not including (C) to determine the length of the period affected by the reduced overpayment (E)
   
• Divide the amount in the Total Entitlement field for the earliest award version (B) by the number of days in the award period and multiply by (E) (round up to the nearest pence) to determine the total paid between the start of the award and the start of the effective award (F)
   
• Divide the amount in the Total Entitlement field for the affected version (D) by the number of days in the award period and multiply by (E) (round down to the nearest pence) to determine the total notional entitlement between the start of the award and the start of the effective award (G)

Note: For most years the number of days in the award period will be 365 but in some cases it could be less depending on when the award started

• Deduct (G) from (F) to determine the total overpayment amount for the tax credit

Then either

• Calculate the in year adjustment amount of the overpayment for the other tax credit

Or

• Calculate the Finalised, Ceased or Terminated award

Then

• Go to step 53

• Use Function VIEW HOUSEHOLD ACCOUNT
   
• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the relevant year to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Click on the [Postings] button. You will be taken to the View Award Period Postings screen
   
• Check for any of the following postings relating to a contra error

• A posting made on a Sunday rather than the normal household pay day

Note: For example, the household pay day is usually a Friday and there is a payment posted for Friday 09-12-2005, than a further payment is posted on Sunday 11-12-2005

• Duplicate payments posted on the same day that relate to the duplicate entries in the payment schedule

Note: If the duplicate payments are issued after 12-12-2005 they can be identified by double clicking on the entry in postings. The following message will display 'This posting was the result of an account discrepancy adjustment'. These payments should add up to the amount noted at step 14 from the message in Function VIEW HOUSEHOLD NOTES

• If the payment was a CTC and or WTC payment, make a note on the Overpayment Calculation sheet of how much was paid for each credit type

Then

• If the payments were combined CTC / WTC payments

• Click on the relevant payment to highlight it

• Click on the [OK] button. You will be taken to the View Giro Details and / or View BACS Details screen

• Note separately the amount of CTC and WTC included in each payment

• Make a separate note of the amount of overpayment for WTC and / or CTC on the Overpayments worksheet and Overpayment Calculation sheet for each tax credit

Then

• Go to step 47

• Use Function VIEW HOUSEHOLD ACCOUNT
   
• Enter the claimant's NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the Select Award screen
   
• Click on the relevant year to highlight it
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen
   
• Click on the [Postings] button. You will be taken to the View Award Period Postings screen
   
• Identify the manual payments to be remitted

• If the payment was a CTC and / or WTC payment, make a note on the Overpayment Calculation sheet of how much was paid for each credit type

Then

• If the payments were multiple payments

• Click on the relevant payment to highlight it

• Click on the [OK] button. You will be taken to the View Giro Details screen

• Note separately the amount of CTC and WTC included in each payment

• Make a separate note of the amount of overpayment for WTC and / or CTC on the Overpayments worksheet and Overpayment Calculation sheet for each tax credit

Then

• Go to step 48

Is the reason for the overpayment due to backdating payments

• No, go to step 49
   

• Yes

• Use Function VIEW HOUSEHOLD ACCOUNT
   

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

• Select the All checkbox
   

• Click on the [OK] button. You will be taken to the Select Award screen
   

• Click on the relevant year to highlight it
   

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

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

• Identify the payment to be remitted. The payment will be a CTC and / or WTC payment
   

• Make a note on the Overpayment Calculation sheet of how much was paid for each credit type

Then

• Go to step 49

• No, go to step 50
   
• Yes

• Use Function VIEW AWARD to calculate the overpayment

• Go to the Select Award screen and click on the award version that contains the incorrect data to highlight it

• Click on the [OK] button. You will be taken to the Award Summary screen

• Make a separate note of the total award amount for both WTC (A) and CTC (A1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

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

• Click on the award version immediately prior to the one you have been looking at to highlight it

• Click on the [OK] button. You will be taken to the Award Summary screen

• Make a note of the total award amount for both WTC (B) and CTC (B1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

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

• Deduct (A) from (B) and (A1) from (B1) to determine the annual amount of the overpayment

• Separately divide the WTC and / or CTC result by the number of days in the award period to obtain a daily rate

Note: The award period for the years 2003 / 04 and 2007 / 08 is 366 days

• Calculate the number of days from and including the award start date to the day before the award was corrected

Note: The date the award was corrected is in the Received Date field in the Select Application Version screen

Note: The number of days will be no more than 365 (366 for 2003 / 2004 and 2007 / 2008). If the award was corrected after the end of the award period, you must only calculate the number of days to the end of the award period

Note:If entitlement starts or finishes part way through the tax year, the award period would start or finish from the date entitlement does

• Separately multiply the number of days by the daily rate for WTC and / or CTC, to establish the amount of overpayment for each tax credit
   
• Make a separate note of the amount of overpayment for WTC and / or CTC on the Overpayments worksheet and Overpayment Calculation sheet for each tax credit

Then

• For cases where the claimant disputes an overpayment arising in tax year 2008-2009 or a subsequent year. If the claimant notified HMRC of the mistake more than 30 days after receiving the award notice a further calculation will be required to identify how much of the overpayment should be remitted
   

• For cases where the claimant disputes an overpayment arising in an earlier tax year . If the claimant failed to notify HMRC of the mistake promptly after receiving the award notice a further calculation will be required to identify how much of the overpayment should be remitted 

Note: Allow 4 days from the award issue date to calculate the received date of the award notice

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

• Calculate the number of days from the date the claimant notified HMRC of the mistake to the date the claim was actually processed with the correct details
   

• Separately multiply that number of days by the daily rate for WTC and / or CTC to establish the amount of overpayment to be remitted for each tax credit
   

• Make a separate note of the amount of overpayment to be remitted for WTC and / or CTC on the Overpayments worksheet and the Overpayment Calculation sheet for each tax credit

Note: If you have previously noted a figure on the Overpayment Calculation sheet, replace this figure with the new overpayment amount to be remitted

Then in all cases

• Go to step 50

• No, go to step 51
   
• Yes

• Use Function VIEW APPLICATION to calculate the overpayment

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

• Select the All checkbox

• Click on the [OK] button. You will be taken to the Select Application Version screen

• Click on the claim version where the change of circumstances was correctly applied

• Select 'File' on the toolbar menu

• Select 'Next Function' from the options available

• Select Function VIEW AWARD

• Go to the Award Summary screen and make a note of the issue or version date, and the total award amount for both WTC (A) and CTC (A1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

Note: If this action takes you to an award version for a later year, you will need to use Function VIEW AWARD to check for an award with a version date close to the date of the claim version. You will need to select 'Navigation' on the toolbar menu and select 'View Application' from the options available to check if the award version was created by the claim you are checking. If not, you will have to cancel out and check other award versions in the same manner until you locate the correct version

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

• Click on the award immediately prior to the one you have just been looking at where the change of circumstances or correction was applied incorrectly

• Click on the [OK] button. You will be take to the Award Summary screen

• Make a note of the total award amount for both WTC (B) and CTC (B1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

• Deduct (A) from (B) and (A1) from (B1) to determine the annual amount of the WTC and / or CTC overpayment

• Divide the result by the number of days in the award period to obtain the daily rate

Note: The number of days will be no more than 365 (366 for 2003 / 2004 and 2007 / 2008). If the award was corrected after the end of the award period, you must only calculate the number of days to the end of the award period

Note: If entitlement starts or finishes part way through the tax year, the award period would start or finish from the date entitlement does

• Calculate the number of days between the earliest effective date for the change of circumstances or correction to the date it was actually corrected

Note: The effective date is the date from which the new circumstances are taken into account for the purpose of calculating award entitlement. The effective date of a change of circumstances is represented by either

• A start date in the Include From field in the History screen, which you noted on the Application History Information Form in step 18

Or

• If an end date has been entered in the History screen, the day after the end date which you noted on the Application History Information Form in step 18

• Separately multiply the number of days by the daily rate for WTC and / or CTC to establish the amount of overpayment for each tax credit
   
• Make a separate note of the amount of overpayment for WTC and / or CTC on the Overpayments worksheet and the Overpayment Calculation sheet for each tax credit

Note: If we have applied a change of income incorrectly, by either entering the wrong figure or failing to carry forward both claimant 1 and claimant 2’s income, the effective date will be 6 April or the date entitlement started

Then

• For cases where the claimant disputes an overpayment arising in tax year 2008-2009 or a subsequent year. If the claimant notified HMRC of the mistake more than 30 days after receiving the award notice a further calculation will be required to identify how much of the overpayment should be remitted
   

• For cases where the claimant disputes an overpayment arising in an earlier tax year. If the claimant failed to notify HMRC of the mistake promptly after receiving the award notice a further calculation will be required to identify how much of the overpayment should be remitted

Note: Allow 4 days from the award issue date to calculate the received date of the award notice

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

• Calculate the number of days from the date the claimant notified us of the mistake to the date the claim was actually processed with the correct details
   
• Separately multiply that number of days by the daily rate for WTC and / or CTC to establish the amount of overpayment to be remitted for each tax credit
   
• Make a separate note of the amount of overpayment to be remitted for WTC and / or CTC on the Overpayments worksheet and the Overpayment Calculation sheet for each tax credit

Note: If you have previously noted a figure on the Overpayment Calculation sheet, replace this figure with the new overpayment amount to be remitted

Then in all cases

• Go to step 51

• No, go to step 52
   
• Yes

• Use Function VIEW APPLICATION to calculate the overpayment

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

• Select the All checkbox

• Click on the [OK] button. You will be taken to the Select Application Version screen

• Click on the claim version that had the late change of circumstances applied to it to highlight it.

• Select 'File' on the toolbar menu

• Select 'Next Function' from the options available

• Select Function VIEW AWARD

• Go to the Award Summary screen and make a note of the total award amount for both WTC (A) and CTC (A1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

Note: If this action takes you to an award version for a later year, you will need to use Function VIEW AWARD to check for an award version date close to the date of the claim version. You will need to select 'Navigation' on the toolbar menu and then select 'View Application' from the options available to check if the award version was created by the claim you are checking. If not, you will have to cancel out and check other award versions in the same manner until you locate the correct version

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

• Make a note of the date in the Version Dated field on the Calculation of In Year Adjustment sheet

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

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

• Click on the award immediately prior to the one you have just been looking at

Note: For cases where entitlement has reduced to nil or ended, for example if the change recorded is a late household end, you do not need to make a comparison against the previous award amount. View the claim version which had the correct change of circumstances applied to it and divide the number of days in the award period to calculate the daily rate

Note: If entitlement starts or finishes part way through the tax year, the award period would start or finish from the date entitlement does

• Click on the [OK] button. You will be taken to the Award Summary screen

• Make a note of the total award amount for both WTC (B) and CTC (B1) on the Overpayments worksheet

Note: You can find this information in the Tax Credit Type box

• Deduct (A) from (B) and (A1) from (B1) to determine the annual amount of the WTC and / or CTC overpayment

• Divide the result by the number of days in the award period to obtain a daily rate

Note: The number of days will be no more than 365 (366 for the years 2003 / 04 and 2007 / 08). If the award was corrected after the end of the award period, you must only calculate the number of days to the end of the award period

• Calculate the number of days between the end of HMRC’s 30 day limit for applying the change and the date HMRC processed the change to identify how much of the overpayment is not recoverable

For example: The claimant notified HMRC of a change on 01-06-2007. HMRC’s 30 day limit for making the change ended on 30-06-2007. HMRC made the change on 11-07-2007. The overpayment is not recoverable from 01-07-2007 to 11-07-2007 when HMRC processed the changed

• Separately multiply the number of days by the daily rate for WTC and / or CTC to establish the amount of overpayment to be remitted for each tax credit

• Make a separate note of the amount of overpayment to be remitted for WTC and / or CTC on the Overpayments worksheet and the Overpayment Calculation sheet for each tax credit

• Go to step 52

• No, go to step 53
   
• Yes

• Use Function VIEW HOUSEHOLD ACCOUNT

• Enter the claimant's temporary reference number in the Key Entry Data screen

• Select the All checkbox

• Click on the [OK] button. You will be taken to the Select Award screen

• Click on the relevant year to highlight it

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

• Note the total amount of payments made for WTC and / or CTC to the claimant

Note: You can find this information in the Tax Credit Type box

• Make a note of the amounts of WTC and / or CTC on the Overpayments worksheet

Then

• Go to step 53

• If you decide that the overpayment is fully recoverable, go to step 55

• If you decide to remit all or part of the overpayment, and if the overpayment recovery has been suspended by

• Using Function MAKE REMISSION, go to step 55

Note: You will have already remitted the amount you have decided is due to HMRC failing to meet one of their responsibilities whilst following the guidance in Reinstate Overpayment Recovery as you would need to cancel and then reapply the new remission amount at the same time

• Using Function ADJUST IN YEAR PAYMENTS, go to step 54

• Contacting DMB, go to step 54

Then

• Go to step 55

Prepare and issue the appropriate form to the claimant from those listed below

• HMRC has met all its responsibilities, the overpayment is fully recoverable, issue form TC883
   

• HMRC has failed to meet its responsibilities for part of the overpayment, issue form TC859D
   

• HMRC has failed to meet its responsibilities for all of the overpayment and you have remitted the overpayment in full, issue form TC859B
   

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

Notes:

1. In joint household cases, issue one letter addressed to both claimants
    

2. In household breakdown cases, if the overpayment position has changed, a separate letter must be issued to each claimant .  The letter to the claimant who has not written in must only give the overpayment decision. Do not include answers to other issues. If the overpayment position has not changed, that is the overpayment has not been remitted in full or in part, issue one letter to the claimant who disputed the overpayment

Then

• Go to step 56

Use Function MAINTAIN HOUSEHOLD NOTES and select the 'Debt Recovery' category to record the following, as appropriate

• ‘ OD60 - *DOP TC883 issued to (clmt1 /clmt2) HMRC has met all its responsibilities. Overpayment in (insert tax year) fully recoverable reason for overpayment (insert reason). (group xx team xx)’
   

• ‘ OD12 - *DOP Letter to (clmt 1 / clmt 2. Overpayment Remitted in full* / remitted in part* / not remitted(*Delete as appropriate) Amount remitted £XXX.XX*’*Reason/s Amount not remitted £XXX.XX*** Reason/s by group XX teamXX'

Note: If recording the note above, you must ensure you record both the amount remitted and the amount not remitted, where applicable

• ' OD13 - *DOP not applicable corrective action identified and CofC applied, CofC letter, TC846 & COP 26 issued to claimant by (group XX teamXX)'
   

• ' OD14 - *DOP not applicable, S17 Restore action applied by (group xx team xx)'
   

• ‘TCMZ *DOP PVE reason identified for overpayment papers passed to team correcting PVE for their action’

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 you have recorded the note about PVE above, go to step 57

Otherwise

• Go to step 57

• Being declared bankrupt / sequestrated
   
• The repayment is causing them 'Hardship'

Note: The claimant must have mentioned that they are in Hardship before you consider referral to DMB or the MAPTH team

• If they did not mention any of the above, go to step 58

• If they did mention

• Being declared bankrupt / sequestrated, follow the guidance in Claimant Declared Bankrupt Or Sequestrated
   
• Hardship and you have carried out a full remit, take no further action. This is because you have remitted the full overpayment and so hardship no longer applies

• Hardship and you have carried out either a partial remit or a full recovery and the case is in direct recovery

• Complete form TC648 and clearly mark on the top of the form 'Hardship Case'

Note: You need to include details of the year of the overpayment that is in direct recovery on the form TC648

• Securely attach copies of all correspondence or additional evidence to support the claimant’s hardship to the form TC648
   

• Send the documents to DMB using Taxpost Direct (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
   

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

‘ OD16 - Dispute action complete - papers passed to (relevant team) for consideration of hardship’

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

• Hardship and you have carried out either a partial remit or a full recovery on a case in cross year or in year recovery

• Complete form TC648 and clearly mark on the form ‘Hardship Case’
   
• Send the photocop iesof the letter and details of the overpayment dispute decision to the MAPTH Team (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

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

‘ OD16 Dispute action complete - papers passed to MAPTH team for consideration of hardship’

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 58