Undisclosed Partners: Recovery of Overpayments - Late Notification of a Change of Circumstance made between 17 May 2007 and 17 January 2010
Where a customer fails to disclose a partner when they make a claim but this is a result of a genuine error (see CCM15630) we will consider remitting all or part of the overpayment. This practice of remitting all or part of the overpayment is known as Notional Entitlement. However, this treatment is not available where a customer is late telling us about a change of circumstance (see examples at CCM15615). It is, therefore, not available where:
- You open an examination into a new claim and find that the claim was correctly made but a partner has moved in with them in the current year.
- You open an enquiry because we have information that one or more of the claims are incorrect. You then establish the original claim was correct but there has been a change of circumstance which was not notified. In some cases there will have been a further change but notional entitlement is still not available.
Where you have established there is or has been an undisclosed partner but Notional Entitlement is not available you will need to explain:
- Your conclusion - see CCM15350.
- They failed to notify a change or circumstance. They might have gone on to make an incorrect end of year declaration.
- The award will be terminated from the date the partner joined the household and all tax credits paid to them from that date will be overpaid. This will be the case even if the partner subsequently moved out.
- They might be eligible to make a new claim either as a couple or as a single person if their partner is no longer living with them. In some cases it will not be necessary to give this advice because a new claim will already have been made.
- How you propose to settle the case - see Chapter 8 (CCM8000) or Chapter 14 (CCM14000).