Undisclosed Partners: Recovery of Overpayments - Incorrect Claims where Examination or Enquiry settled between 17 May 2007 and 17 January 2010
Where an examination or enquiry is settled between 17 May 2007 and 17 January 2010 and it establishes that an incorrect claim was made as a result of a genuine error by the customer we will consider remitting all or part of the overpayment to reflect the true loss to the public purse. This practice is known as Notional Entitlement. There is no limit to the number of years that can be covered by the calculation as long as the genuine error continues to exist.
Genuine error means the customer must have reasonably thought they had made a correct claim. You must, therefore, put yourself in the customer’s shoes and consider whether they could have reasonably thought they were single or a couple, bearing in mind the wording on the claim form or the notes that accompany the claim form. See the examples at CCM15640.
We expect a customer to read the notes on the claim form and where they do not appear to cover their circumstances we expect them to look at the TC600 Notes. Where they do not understand the notes or they are unsure of the position we expect them to seek help.
Where a customer who made a genuine error when they made their tax credit claim:
- subsequently realises their claim was incorrect or
- their circumstances change so that they could no longer reasonably believe their claim is correct
they will no longer qualify for Notional Entitlement unless they take prompt steps to tell us about their circumstances.
Cases involving Undisclosed Partners are not always as clear cut as the examples at CCM15640. You will need to carefully consider all of the facts. Remember you must be satisfied that the customer could reasonably have thought they were making a correct claim. If you are in any doubt you should discuss this with your manager.
Where Notional Entitlement is not available - see CCM15645.
Where Notional Entitlement is available - see CCM15650.