Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
, see all updates

Undisclosed Partners: Recovery of Overpayments - Examples of Late Notification of a Change of Circumstance made between 17 May 2007 and 17 January 2010

Example 1

On 16 April 2007 Jan made a claim for tax credits as a single parent. On 10 December 2007 you open an examination because there is information to suggest another adult lives with her. Jan admits she has been living with John since 10 June 2007 and they are LTAHAW. You will terminate her award as from 10 June 2007. Notional entitlement will not be available because Jan failed to tell us about a change in her circumstances.

Example 2

Leeza has claimed tax credits since April 2003. On 14 August 2007 you open an enquiry for 2006/2007 because you have information to suggest that a single claim by Leeza is incorrect because there is another adult at her address. Leeza admits that Tony moved in with her on 21 March 2005. There will be a small overpayment for 2005/2006 and all of the tax credits paid since 6 April 2006 will be overpaid as Leeza was not entitled to claim as a single parent after 21 March 2005. Notional Entitlement will not be available for any of the years because Leeza failed to tell us about a change in her circumstances.

Example 3

Susan has claimed tax credits as a single parent from April 2003. On 20 August 2007 you open an enquiry for 2006/2007 because you have information to suggest there is another adult living at her address. Susan admits that Stephen moved in with her on 1 February 2004 and they were LTAHAW. However, Stephen moved out again on 16 June 2005. You accept that Susan and Stephen were only LTAHAW between 1 February 2004 and 16 June 2005. Susan’s award will be terminated as of 1 February 2004 because she was no longer entitled to claim as a single person from that date. There will therefore be overpayments for 2003/2004, 2004/2005, 2005/ 2006, 2006/2007 and 2007/2008. Notional Entitlement is not available because Susan failed to tell us about a change in her circumstances. It does not matter that Stephen moved out again in 2005/2006 as the award should have come to an end on 1 February 2004.

Example 4

In May 2005 James made a single claim and renewed this in 2006 and 2007. On 22 October 2007 James rings the Contact Centre to say that on 11 June 2007 Emma moved in with him. Emma and James can make a joint claim and this can be backdated to 22 July 2007. James will have been overpaid as a single customer for 11 June to 22 October 2007 because he was late telling us about the change in his household. The TCO will not be able to allow James Notional Entitlement even though James and Emma could have made a joint claim from 11 June 2007.