Providing Claimants With Information On Their Overpayments (AG)

• Is disputing the overpayment

Or

• Is disputing the decision to recover the overpayment

Or

• Requires an explanation of the overpayment

• Send the correspondence to the relevant team on your Group

Then

• Take no further action

• Has had their overpayment remitted by Claimant Compliance and a form TC33 has been issued to Debt Management and Banking (DMB)

• Prepare and issue a free format letter to the claimant stating

‘Thank you for your letter of (insert date of letter from claimant). Your overpayment of tax credits is being dealt with by another office within HM Revenue & Customs and they will contact you directly’

Then

• Go to step 25

• Requests more time to repay a tax credits overpayment or would like to pay the tax credits back in instalments, follow the guidance in Claimant Would Like To Extend Date To Repay Their Overpayment (Setting An Informal Arrangement)
   
• States that the recovery of an overpayment from a continuing year is causing them hardship, send the correspondence to the Tax Credit Office (TCO) (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Then

• Take no further action

• States they have already repaid their overpayment or would like an update on the status of an overpayment, including what action we are taking or have taken, go to step 2
   
• Is requesting that we collect the overpayment from their ex-partner, go to step 20
   
• Has cross year recovery in place but would like to pay some of the overpayment back direct, either in full or in instalments, even though the overpayment is being recovered from their new award, go to step 21
   
• States they have received a letter from us informing them that their overpayment has been remitted but have not heard anything further, go to step 23
   
• States they cannot pay back the overpayment due to bankruptcy, go to step 31

• Go to the View Award Period Summary screen for all awards in each tax year
   
• Make a note of any outstanding overpayment in the Overpayment Outstanding field

Then, even if there is no outstanding overpayment recorded

• Go to step 3

• Enter the claimant’s NINO in the Key Entry Data screen
   
• Select the All checkbox
   
• Click on the [OK] button

• If only one award appears, click on that award to highlight it, click on the [OK] button and then go to step 5
   
• If more than one award appears, go to step 4

‘No overpayment details found’

• Make a note of each award period that has an overpayment recorded against it on form TC648
   
• Click on the earliest award that has an overpayment recorded against it to highlight it
   
• Click on the [OK] button

Then

• Go to step 5

Note: If more than one award version has an overpayment recorded against it, follow these steps for each award separately before contacting the claimant and then give the claimant an update on all the outstanding overpayments for each award
 

• ‘Direct Pre Notice to Pay’, go to step 6
   
• ‘Direct Post Notice to Pay’, go to step 8
   
• ‘Informal Arrangement’, go to step 10
   
• ‘Cleared’, go to step 11
   
• ‘Notional’, go to step 12
   
• ‘Suspended’, go to step 13
   
• ‘Local Recovery’ or ‘Local Recovery (ENF)’, go to step 20
   
• ‘Cross Year Recovery’, go to step 21

Notes:

1. If there was no overpayment outstanding when you checked Function VIEW HOUSEHOLD ACCOUNT and the status is not showing as cleared do not contact the claimant. Instead, refer the case to your Help Desk Liaison Officer to raise a vantive through the Technical Advice Line (TAL)
    
2. If the amount the claimant says they have paid towards their overpayment has been posted to the wrong account, go to step 25

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform them that they will receive a letter shortly explaining how they can repay the overpayment

And

• Tell them to wait until they receive this letter as it will contain a payment slip which they must use to send in with their repayment

• If they are not happy to wait, go to step 7
   
• If they are happy to wait, go to step 28

• Send a cheque for the amount of the overpayment, telling them to

• Include a covering letter with their personal details on it
   
• Write their NINO on the back of the cheque

And then

• Send them to

Tax Credit Office
Preston
PR1 0SB

• Take a cheque for the amount of the overpayment to their nearest Enquiry Centre ensuring that their NINO is written on the back of the cheque

Or

• Request a payment slip to be sent to them sooner

If the claimant states that

• They would like a payment slip to be sent to them sooner, go to step 25
   
• They are going to return a cheque to either the TCO or an Enquiry Centre, go to step 28

• Click on the [Details] button
   
• Check the Notice to Pay field to see what date the form TC610 Notice to Pay was issued

Then

• Go to step 9

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant of the date form TC610 was issued to them and that this letter contains a payment slip which they should use to repay their tax credits

If the claimant states that

• They are happy with this, go to step 28
   
• They have received the letter but they cannot pay the overpayment back within the 30 day time scale given on the letter, follow the guidance in Claimant Would Like To Extend Date To Repay Their Overpayment (Setting An Informal Arrangement)
   
• They have not received the letter. Check the date of issue of the form TC610 Notice to Pay. If it has been issued

• In the last week, inform the claimant that it has only just been sent out to them and tell them that if they have not received the form TC610 within 7 days of this telephone call, they should contact us again to arrange a duplicate. Go to step 28
   
• Over a week ago, inform the claimant that you will arrange for a duplicate to be issued to them and ask them to confirm their address. Go to step 18

• They have started to repay the overpayment but they would like to confirm how much is still left to pay

• Use Function VIEW HOUSEHOLD ACCOUNT and go to the Award Period Summary screen
   
• Inform them of the balance of the outstanding overpayment
   
• If they are happy with this, go to step 28
   
• If they require further information, inform them that someone from the Payment Helpline will contact them to discuss their overpayment. Go to step 25

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform them that we have set up an Informal Arrangement with them and provide the claimant with the date that they have to repay their tax credits by

And

• Inform them that you cannot extend this date any further

If the claimant states that

• They are happy with this, go to step 28
   
• They cannot pay the overpayment back by this date and they need more time. Inform them that someone from the Payment Helpline will contact them to discuss repaying their overpayment. Go to step 25

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant that any overpayment they had on this award has now been cleared

And

• Tell them there is no overpayment outstanding for this tax credits award

Note: An overpayment can only be cleared when the overpayment has been fully repaid or a full remission has been applied. Where either of these occur, the claimant will receive a new award notice

Then

• Go to step 28

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant that at this time there is no overpayment or underpayment on this award

And

• Inform them that if an overpayment or underpayment is found, they will be contacted

Note: A ‘Notional’ status means that no overpayment has been confirmed. It is unlikely that any queries will be received on this status, as the claimant will not have been notified of any overpayment yet. The claimant may be querying an overpayment on another award

Then

• Go to step 28

• Click on the [Details] button
   
• Check the Suspension Reason field. If the reason is

• ‘Working Hours <16' or 'Unchecked Manual Remission', go to step 14
   
• ‘Appeal’, ‘Incorrectly Finalised’ or ‘Compliance’, go to step 16
   
• 'RLS', go to step 17
   
• ‘Time to Pay’ (Formal Arrangement). go to step 20

1. There is a known issue in some instances, particularly with Appeals and Compliance cases. When the Appeal maker or Compliance marker is set the overpayment becomes suspended. When the markers are taken off, the system should unsuspend the overpayment. Keep in view this is not happening is some of the cases and the overpayment remains suspended
    
2. If the reason the overpayment has been suspended is ‘Working hours <16’, the claimant has not been notified they have an overpayment and that it is currently suspended

• Check for a continuing award for the claimant by looking for a tax credits claim made for the same family in the new tax credits year

Note: If there is a continuing award, then any overpayment will be recovered by cross year recovery. If there is no continuing award, then any overpayment will be recovered directly from the claimant. If the reason for the overpayment is ‘Working Hours <16’, the overpayment will not be recovered until it has been worked from the ‘Suspended Overpayments’ Work List

Then

• Make a note on form TC648 if the overpayment is going to be recovered by cross year recovery or directly from the claimant

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform them that their overpayment is being looked at again to check if the overpayment is correct
   
• If their overpayment has been suspended because the reason is ‘Working Hours <16’, inform the claimant that they will be notified separately about this element of their overpayment

And, once the checks have been completed

• If any overpayment is still outstanding it will

• Be recovered from their continuing award for tax credits. This is called cross year recovery

Or

• Be recovered directly if there is no continuing award. Advise the claimant that they will receive a letter asking them to repay the tax credits

Then

• Go to step 28

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant that the overpayment recovery has been put on hold because

• They have appealed against the decision

Or

• Checks are being made to ensure the decision is correct

• Inform them that

• They will be contacted shortly regarding the appeal or once the checks are completed

And

• If they still have an overpayment at this time, then the overpayment will be dealt with then

Then

• Go to step 28

• If you are unable to contact the claimant by telephone

• Obtain the correct address. Follow the guidance in RLS Items – Post Award / Annual Declaration (Renewals)

Then

• Go to step 18

• If you are able to contact the claimant by telephone

• Thank the claimant for their letter

And

• Ask the claimant to confirm their address

Then

• Go to step 18

• If the overpayment was suspended RLS, go to step 19
   
• If the claimant has not received form TC610 Notice to Pay and the address they have given you is different to the one held on the computer, go to step 19
   
• If the claimant has not received form TC610 Notice to Pay and the address they have given you is the same as the one held on the computer, but there is no RLS marker set

• Inform the claimant that you will arrange for a duplicate form TC610 Notice to Pay to be sent to them

Then

• Go to step 25

• If the address you have obtained is the same as the one held on the computer, remove the RLS marker
   
• If the address you have obtained is not the same as the one held on the computer, capture the new details and then remove the RLS marker

Note: If the overpayment was suspended RLS, the removal of the RLS marker will remove the suspension status and amend the recovery status in Function VIEW OVERPAYMENT

Then

• To give the claimant an update on their overpayment you will need to check the new recovery status. Go back to step 3

Or

• If you are dealing with a claimant who has stated that they have not received form TC610 Notice to Pay but you have obtained a new address, inform them that you will arrange for a duplicate form to be sent to them. Go to step 25

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant that they will need to contact the Payment Helpline with any queries about their overpayment

And then

• Give the claimant the Payment Helpline number 0845 302 1429

If the claimant states that they

• Would like the helpline to contact them. Inform them that you will arrange for the Payment Helpline to contact them and then go to step 25
   
• Are happy to contact the helpline themselves, go to step 28

• Thank the claimant for their letter
   
• Explain to the claimant that where tax credits for a previous year have been overpaid and a new award for the same family has been made, any overpayment will be recovered from the new award. This is called cross year recovery
   
• Explain that the amount by which an award can be reduced to recover an overpayment depends on the circumstances of their family. The reduction rates that are applied are

• 10% - for claimants receiving the maximum award
   
• 100% - for claimants receiving only the family and / or baby element of CTC
   
• 25% - for all other claimants

• Inform the claimant that if they would like more information about how we treat overpayments our leaflet Code of Practice 26 ‘What happens if we have paid you too much tax credit’ is available by

• Going online at www.hmrc.gov.uk/taxcredits

Or

• Telephoning 0845 9 000 404 to obtain a paper copy

And

• Inform the claimant that they can pay some or all of their overpayment back directly. However, where the repayment does not cover the whole amount of the overpayment then the weekly or four weekly reduction in their tax credits will continue at the same rate until the balance is paid back

If the claimant

• Wants cross year recovery of their overpayment to continue, go to step 28
   
• Would like to repay some or all of the overpayment as a lump sum or in instalments direct, go to step 22
   
• States that the recovery of an overpayment from a continuing year is causing them hardship

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

Then

• Take no further action

• Select the tax year you have been looking at in Function VIEW OVERPAYMENT
   
• Go to the View Award Period Summary screen
   
• Inform the claimant of the amount in the Overpayment Outstanding field

Then

• Inform them that

• If they are making a lump sum repayment, you will arrange for a payment slip to be issued to them. Go to step 25
   
• If they want to make further payments in addition to what is being collected through their award to repay their overpayment sooner

• They can send us a cheque by post with a covering letter to

HM Revenue and Customs
Accounts Office
Victoria Street
Shipley
Bradford
West Yorkshire
BD98 8AA

• Go to step 28

• Use Function VIEW HOUSEHOLD ACCOUNT
   
• Enter the claimants NINO in the Key Entry Data – Applicant screen
   
• Select the All checkbox
   
• Click on the [OK] button. You will be taken to the View Award Period Summary screen

Note: If you are taken to the Select Award screen, click on the relevant award period you identified from the claimant to highlight it and then click on the [OK] button. You will then be taken to the View Award Period Summary screen

• If there is no amount in the Adjustments field, the overpayment has not been remitted. Use Function MAINTAIN HOUSEHOLD NOTES to make a note of the amount that should have been remitted

• If there is a note stating the amount that should have been remitted, apply the remission. Follow the guidance in Make Or Cancel A Remission
   
• If there is no note relating to the remitted amount, recall the casepapers from storage to check the amount that should have been remitted and apply the remission. Follow the guidance in Make Or Cancel A Remission

Then

• Go to step 24

• If there is an amount in the Adjustments field, the amount has been remitted

• Click on the [Postings] button
   
• Check in the Postings field for any manual remissions. These can be identified as

‘RMNC Manual Remission (non-recoverable)’ for CTC

‘RMNC Manual Remission (non-recoverable)’ for WTC

Then

• Check in the Postings field to see if any of the following postings appear following a manual remission

‘BPOM BACS Claimant Payment Out’

‘GPOW Giro Claimant Payment Out’

‘SOFC Set Off Payment from CTC’

‘SOFW Set Off Payment from WTC’

• If any of the above postings are shown, payments will have either

Been issued to the claimant

Or

Set off from either CTC or WTC

• If any of the following postings appear following a manual remission

‘PUOC Permanent Underpayment Out’ for CTC

‘PUOW Permanent Underpayment Out’ for WTC

A permanent underpayment is showing and payments will not have been sent out to the claimant. Pass the case to the TALLO. Inform the claimant that we will issue payments to them in due course and apologise for any inconvenience caused

Then

• Go to step 24

• If you are unable to contact the claimant by telephone, go to step 27
   
• If you are able to contact the claimant by telephone

• Thank the claimant for their letter
   
• Inform the claimant that you have now remitted the overpayment and they will receive a new award notice

Or

• Inform the claimant that the overpayment has been remitted and they are due to receive a payment or that it has been offset against their CTC or WTC award

Or

• Inform the claimant that the overpayment they are querying has been remitted or written off but they are not actually due to receive any money

Or

• Inform the claimant that the overpayment has been remitted. Any money they have paid towards repaying the overpayment will be returned to them in due course

Then

• Go to step 28

• Claimant’s name
   
• Claimant’s NINO
   
• Claimant’s new address (for staff dealing with form TC610 returned RLS only)
   
• Amount of the overpayment
   
• The award period that the overpayment relates to
   
• The claimant’s contact telephone number and a suitable contact time, either AM or PM if a call back is required

Add one of the following appropriate statements

• The claimant would like to be contacted about repaying their overpayment
   
• The claimant would like to be contacted about repaying their overpayment in instalments
   
• The claimant would like a payment slip sent to them
   
• The claimant did not receive form TC610, please issue a payment slip
   
• Form TC610 returned RLS, New address found. Please issue a payment slip and allow a further 30 days for the claimant to repay
   
• The claimant is requesting the overpayment is collected from their ex-partner

Then

• Go to step 28

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

‘ OD36 - Unable to contact the claimant by telephone regarding their overpayment query, letter sent’

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

• Prepare and issue form TC917 to the claimant

Note: In joint household cases, including household breakdown cases a separate letter must be issued to each claimant

• Go to step 28

• If you have come here from step 7

• ‘ OD37 - Correspondence from the claimant querying their overpayment. Explained to claimant that they will receive form TC610 Notice to Pay. They are waiting for this. (Or) However they are returning a cheque to TCO’

• If you have come here from step 9

• ‘ OD38 - Correspondence from the claimant querying their overpayment Claimant is waiting for / has received a TC610 Notice to Pay and is using this to repay the overpayment’

• If you have come here from step 10

• ‘ OD39 - Correspondence from the claimant querying their overpayment. Informed claimant that they have to repay tax credits by XX/XX/XX’

• If you have come here from step 11

• ‘ OD40 - Correspondence from the claimant querying their overpayment. Informed claimant that the overpayment for award period yy/yy has now been cleared’

• If you have come here from step 12

• ‘ OD41 - Correspondence from the claimant querying their overpayment. Informed claimant that no over / underpayment for award period yy/yy has been confirmed. Explained we will write to them with details if any over / under payment is confirmed’

• If you have come here from step 16

• ‘ OD42 - Correspondence from the claimant querying their overpayment. Informed claimant that we are looking at their case again. Explained how any overpayment outstanding after our checks are complete will be recovered’

• If you have come here from step 21

• ‘ OD43 - Correspondence from the claimant querying their overpayment. Informed claimant about how the overpayment is being recovered from their future awards’

• If you have come here from step 24

• ‘ OD44 - Correspondence from the claimant querying their overpayment. Informed claimant their overpayment has been remitted and *a cash cheque was issued to them on DD/MM/YYYY *they have not received a payment because it has been set off against their other award *any money they have paid to repay their overpayment will be issued to them in due course (*delete as appropriate)’

• If you have come here from step 25

• ‘ OD45 - Correspondence from the claimant querying their overpayment. TC610 Retd RLS. New address located. Case passed to Cumbernauld to issue a payment slip’

Or

• ‘ OD46 - Correspondence from the claimant querying their overpayment. Informed claimant to contact the Payment Helpline’

Or

• ‘ OD47 - Correspondence from the claimant querying their overpayment. Informed claimant that the Payment Helpline will contact them. Form TC648 sent to Cumbernauld’

Or

• ‘ OD48 - Correspondence from the claimant querying their overpayment. Informed claimant that we will arrange for a payment slip to be sent to them (if applicable add the claimant has not received their TC610). Form TC648 sent to Cumbernauld’

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 29

• Name
   
• NINO

And

• Details of the telephone conversation

Or

• Details of times and dates of attempted call(s)

Then

• Attach the form TC648 to the correspondence from the claimant along with any other documentation you have

• Take no further action

• If no amount is recorded. This means any overpayment is being recovered by cross year recovery. Go to step 32
   
• An amount is recorded. This means any overpayment is being recovered directly from the claimant. Go to step 33

• Claimant’s name
   
• Claimant’s NINO

And

• The fact that the claimant is bankrupt

Then

• Attach the correspondence to the form TC648

And

• Follow the guidance in Claimant Declared Bankrupt Or Sequestrated

• Claimant’s name
   
• Claimant’s NINO

And that

• You are referring the case because the overpayment is in direct recovery and the claimant is stating they cannot pay back the overpayment due to bankruptcy

Then

• Follow the guidance in Claimant Declared Bankrupt Or Sequestrated