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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
, see all updates

Undisclosed Partners: Recovery of Overpayments from 18 January 2010 - Claim is incorrect from the outset but there is no penalty

Where you learn that a claim was made in the incorrect capacity from the outset you can consider remitting part of the overpayment where

  • A new correct claim has now been made and the award made and 
  • The start date for the original award is prior to the date for which the new claim is backdated

Where you have decided not to charge a penalty you need to follow the steps below.

Step 1

  • Advise the customer of the date from which the award will be terminated and that any tax credits paid since that date will be overpaid
  • Explain that they should now make a new claim in the correct capacity and advise them that if they do so you might be able to waive part of the overpayment
  • Issue your closure letter, amend the award and BF your case for 30 days

Step 2

  • During the BF period you should check to see if the new claim has been made and processed
  • If the new claim is not made within this period you can close and settle your case but if the customer then gets in touch to say they have now got their new award see the following point
  • If the new claim is held and an award has been made see step 3

Step 3

  • Use the SEES calculator to calculate the notional entitlement, refer to CCM15720 and then remit the appropriate amount of the overpayment using Make Remission - class 11. The balance of the overpayment will be repayable

Note: Any amounts remitted under Notional Entitlement should be recorded in a separate establishment file

There are examples of a notional entitlement calculation at CCM15755