Check Breakdown (Info)

A Payment Via Employer ( PVE) liability is the relationship between a Working Tax Credit ( WTC) recipient and an employer for the purposes of PVE.

A PVE liability

• Can cover several families if an individual changes family and is still employed by the same employer

• Begins on the start date of PVE, excluding the lead-in period

And

• Ends on the date payment or entitlement ceases, whichever is the later

A liability period is a period of time within a PVE liability where either

• PVE is in payment at a constant rate ( Pay Period)

Or

• PVE has broken down (Breakdown Period)

PVE is deemed to have broken down when an instruction cannot be issued to an employer or an employer fails to comply with an instruction.

A breakdown can be

• Partial, where money is still being paid (for example a stop notice cannot be issued)

Or

• Complete, where no money is being paid (for example a start notice cannot be issued)

A breakdown may be

• Permanent (it cannot be resolved)

Or

• Temporary (resolved or with a resolution pending)

Permanent breakdowns are created clerically using Function MANAGE PVE BREAKDOWN. A permanent breakdown prevents payment of tax credits to the claimant through a particular employer. Direct payments will be set up for periods covered by an unresolved breakdown.

Checks are made to see if any PVE liabilities for this employer relationship have been ended but have breakdowns recorded that can be reopened.

The permanent breakdown marker will not be set when a breakdown is reopened. This is because all breakdowns should be investigated again.

An item will be created on the ‘PVE Failures’ Work List that will include the original reason for the breakdown.