TCTM10140 - Compliance Examinations: Section 16 - Revised decisions - post award examination
The Tax Credits Act 2002, Section 16
Section 16 gives us the power to revise a decision at any time during the period of the award. In-year challenges are called ‘examinations’ so these cases are post -award examinations:
S16 (1) Where, at any time during the period for which an award of a tax credit is made to a person or persons, the Board have reasonable grounds for believing-
(2) Where, at any time during the period for which an award of a tax credit is made to a person or persons, the Board believe-
(3) A notice under this subsection may-
Some points Compliance staff need to note:
- Where, during the period of the award if we have reasonable grounds for believing the rate of an award is incorrect or that the person is entitled to tax credits, or they have ceased to be entitled, or have never been entitled - we may amend or terminate the award under s16(1).
- Where, during the period of the award, we believe the award is incorrect etc - we may ask the claimant or a prescribed person (employer or childcare provider) for information or evidence under s16(2).
- One key point regarding s16(1) is that the award can only be revised in-year so where further information is needed if it is not received in time to amend the award on or before 5 April then the amendment must be made under Section 18 and included in the finalisation process.
As in s14(2) (see TCTM10120) the opening challenge under s16(2) must be in writing and it will be an informal request but it will always be accompanied by a leaflet WTC/FS2 which tells the claimant why we are checking their award, what will happen next and where to go to for help.