Notional Entitlement (AG)

• You are dealing with a new referral

• Suspend the overpayment. Follow the guidance in Register And Maintain A Disputed Overpayment Or Manual Suspension

Then

• Go to step 2

• You are dealing with an expired BF, go to step 7
   
• you have received a reply to form TC909, go to step 9

• Go to the Select Application screen
   
• Click on the earliest version of the incorrect claim to highlight it
   
• Click on the [OK] button. You will be taken to the Application Summary screen
   
• When the Signals screen displays, make a note of the household breakdown date
   
• Go back to the Application Summary screen and make a note of the effective date in the Application field
   
• Use Function VIEW HOUSEHOLD NOTES to confirm the date the change was reported
   
• Make a note of this date

Note: Check Household Notes to establish if the claim has been manually backdated as this would mean the effective date could be different

Then

• If the incorrect claim was made as a single claim instead of a joint claim, go to step 3
   
• If the incorrect claim was made as a joint claim instead of a single claim, go to step 8

• Enter the partners NINO in the Key Entry Data screen
   
• Select the Period checkbox
   
• Enter ’06-04-20xx to 05-04-20xx’ in the Period field for the award period in which you are doing a notional entitlement calculation

Note: If the incorrect claim covers more than one year, you will need to check each relevant tax year separately

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

• If the screen shows other awards that the partner has been included in, go to step 4
   
• If the screen does not show any other awards the partner has been included in, go to step 5

• Click on the award period that you are doing the notional entitlement calculation on 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 [Elements] button. You will be taken to the View Elements screen

• If the partner has been included in an award for the same period as the notional entitlement period, go to step 8
   
• If the partner has not been included in an award for the same period as the notional entitlement period, go to step 5
   
• If the partner has been included in a joint claim with a different partner for the same period as the notional entitlement period, notional entitlement cannot be applied. The overpayment is fully recoverable, go to step 13

• If you are able to contact the claimant by telephone, can the claimant provide you with complete and accurate details of their partner’s income and any other relevant details for the notional entitlement period(s) concerned

• No, go to step 12
   
• Yes

• On form TC648, make a note of the partners income and any other relevant details including the date the partner left the household, if they are no longer living together

Then

• Go to step 8

• If you are unable to contact the claimant by telephone

• Issue form TC909 to the claimant 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 to 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

• Take no further action

• If a reminder been sent, go to step 7
   
• If a reminder has not been sent

• Send a manual reminder form TC609 to the claimant
   
• 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

• Take no further action

• Attempt to contact the claimant one more time to obtain the information you need

• If you obtain the information you need, go to step 8
   
• If you still cannot obtain the information you need, go to step 12

1. You will need to remind the claimant that the details of the partners income must include earnings, certain benefits in kind, pensions, investment income and any other income
   
   
2. You can accept the details direct from the partner but do not disclose details of the claim to the partner

• In Microsoft (MS) Excel
   
• Select ‘SEES’ on the toolbar menu
   
• Select ‘Tax Credits Entitlement Calculator’ from the options available

Note: If the SEES calculator is not available on the toolbar menu, contact the IT Service Centre to arrange for SEES to be installed on your desktop computer
 
Note: Your notional entitlement calculation period will be from the start date of the incorrect award to the date the change was applied or the day before the effective date of the new correct award, whichever date is earliest
 
Note: To view examples of notional entitlement calculations see Worked Examples of Notional Entitlement Calculations

Then

• Go to step 9

Notes:

1. If the claimant is no longer living with the previously undisclosed partner you must calculate the notional entitlement as if they had made a joint claim at the correct time. You must also calculate the notional entitlement as if the correct single claim had been made at the correct time
    
2. If you are doing a notional entitlement calculation for more than one year, you will need to check each relevant tax year separately

• Click on ‘Enter Details of Elements Awarded’
   
• Complete all the blue input fields, starting with the ‘Date Claim Submitted’

Note: You can create entitlement periods here by clicking on ‘Add CoCs’ (Add Change of Circumstances) and then entering the effective date of the change. This will be the period of your notional entitlement calculation. You will need to complete each blue input field with the claimant’s and partner’s details

• Click on ‘Calc’ to view the calculation of the award
   
• The Calculation screen will show you the breakdown of the award, including the taper points for each entitlement period
   
• For the entitlement period under review, make a note on the form TC648 of

• The notional entitlement for CTC
   
• The notional entitlement for WTC

Note: A separate calculation should be made for each household

Note: In order to create a household breakdown you must enter a change of circumstances using the date immediately following the household breakdown as the effective date of the change and change all the blue fields to ‘No’. When you click on ‘Calculate’, this will show the entitlement from the start date to the date the household ended. For example, the entitlement ended on 19/5/2007 so you need to enter the change with an effective date of 20/5/2007

Note: A calculation must be made for each tax year and the calculation for the current year will be based on the provisional payments that would have been made. This calculation gives you the notional entitlement

Then

• If the claimant is no longer living with the partner, go to step 10
   
• If the claimant is still living with the partner, go to step 11

Then

• Go to step 11

• Make a note of the original overpayment for each relevant award period on the form TC648
   
• Make a note of the notional entitlement you calculated keeping the CTC and WTC amounts separate
   
• The notional entitlement you calculated may be remitted against the overpayment

Note: You must repeat this action for all the years included in the notional entitlement calculation
 
Note: The amount you remit must not exceed the total gross overpayment
 
Then

• Go to step 12

• Click on the [Maintain Dispute] button. You will be taken to the Maintain Dispute screen in Function MAINTAIN DISPUTE
   
• If the overpayment

• Is fully recoverable

• Select the appropriate dispute resolution reason from the Dispute Resolution drop down menu
   
• Click on the [OK] button

Note: You must repeat this action for each year in turn to re-instate recovery of the overpayment for that year

Then

• Go to step 13

• Is partially recoverable

Or

• Is not recoverable

• Click on the [Make Remission] button. You will be taken to the Account Summary screen
   
• Remit the amount of the notional entitlement for CTC and / or WTC that you have calculated. Follow the guidance in Make Or Cancel A Remission
   
• Record the amount you have remitted on the Remission Database under class 11

Note: The amount you can remit separately for CTC or WTC may be more than the amount paid out but must not exceed the total amount of tax credits paid out for the household in any one year

• Go back to the Maintain Dispute screen
   
• Select the appropriate dispute resolution reason from the Dispute Resolution drop down menu
   
• Click on the [OK] button

Note: You must repeat this action for each year in turn to re-instate recovery of the overpayment for that year
 
Then

• Go to step 13

• ‘ OD49 - Informed Claimant that notional entitlement has been considered and is not applicable in this case’
   
• ‘ OD50 - No reply to TC909 and TC609, unable to apply notional entitlement until we have received details of partners income’
   
• ‘ OD51 - Informed claimant that Notional Entitlement is available in this case and we have remitted part of their overpayment. The amount of the overpayment remitted is £xx for CTC and £xx for WTC’
   
• ‘ OD52 - Informed claimant that Notional Entitlement is available on this case and we have remitted all of their overpayment’
   
• Prepare and issue a free format letter to the claimant

Then

• Go to step 14