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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
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Undisclosed Partners: Recovery of Overpayment where Examination or Enquiry settled between 17 May 2007 and 17 January 2010 - Claim Incorrectly Made By A Couple

You may sometimes come across cases where a claim has been made by a couple when, in fact, they should have made one or two sole claims. For these cases the gross overpayment will be the amount of tax credits paid from the date of the claim which they made as a couple. The Notional Entitlement will then be the amount they would each have been entitled to claim had they claimed as single customers.

Where only one of the parties would have been entitled to make a claim as a single person there will only be one amount of Notional Entitlement to deduct from the gross overpayment.

Where they would both have been entitled to make a claim as single customer, to arrive at the net overpayment, you should deduct both amounts of Notional Entitlement from the gross overpayment.

Where the Notional Entitlement exceeds the gross overpayment you should restrict it to the amount of the overpayment. For example, the amount of tax credits paid to the couple is £1,376 but they should not have made the claim as a couple. Had they correctly claimed as individuals they would have been entitled to £2,478 in total. The Notional Entitlement should be restricted to £1,376 so that the net overpayment is £0.00.