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HMRC internal manual

Claimant Compliance Manual

Opening and Working Enquiries: Taxpayer is a Tax Credits Customer and the CCRO Identified Tax Credits Risks other than Income from the outset

The Enquiry officer (EO) and the Tax Credits Claimant Compliance Officer (CCO) will jointly work the enquiries from the outset.

The EO and CCO will need to liaise closely, and co-ordinate actions. For example they will need to send two separate opening letters, as detailed in the relevant Enquiry Manual and Claimant Compliance Manual instructions. If the circumstances permit, preferably they should issue them under one covering letter.

At every stage of the case the EO and CCO must make sure the taxpayer / customer and any advisor understand that the department will be looking at both the SA income side and any Tax Credits risks.

Tax Credit Office action:

  • Maintain the Diary / Risk Plan/ TCW/QMS etc
  • Mark the case clearly ‘Subject to SA Enquiry’
  • Tick the SA link box on the Tax Credits Workbench
  • Open the Tax Credits enquiry under S19 (1) TCA2002 (at the same time as the EO opens the S9A enquiry)
  • Prepare the opening letter (and arrange to send it with the opening letter for the SA enquiry and a covering letter). If there is an Agent Acting check that an appropriate mandate is in place
  • If both SA and Tax Credits require closure by contract settlement, it is best to negotiate jointly and obtain separate letters of offer for SA and Tax Credits
  • Amend the award for the year(s) of enquiry
  • If appropriate consider whether the current year’s award needs revision for income.