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HMRC internal manual

Claimant Compliance Manual

Discrepancy Examinations: Action: Considering child /young person’s disability and severe disability element discrepancy cases

Data match scans are carried out to identify where the information we hold about a customer’s entitlement differs to that held by other departments. Claims are identified where there is a discrepancy between the information held by the Department of Work and Pensions (DWP), Child Benefit and the NTC system about the child / young person’s eligibility to the disability and / or Severe Disability Element (SDE).

Compliance Operations will check whether the customer’s household is entitled to the Disability and / or SDE of Child Tax Credit (CTC) on cases listed on the scan.

A child / young person is eligible to the Disability Element of CTC if

  • Disability Living Allowance (DLA) or Personal Independence Payment (PIP) is payable for them, or
  • They are registered as blind, or
  • They ceased to be registered blind in the 28 weeks before the they claimed tax credits

Eligibility for the Disability Element of CTC will continue if DLA or PIP for the child or young person has ceased only because the child or young person is in hospital. However, DLA or PIP must have been in payment for the child in the first place for it to be classed as ceased.

A child or young person is eligible to the SDE of CTC if

  • The Highest Rate Care Component of DLA or Enhanced Daily Living Component of PIP is payable to them or would be payable but for the suspension or hospitalisation.

The cases will be checked against the latest information held on Access to DWP Data (ADD) system, to establish whether the household is entitled to Disability and/or the SDE of CTC. If entitlement is confirmed on ADD, a record will be made on NTC household notes and no further action taken. Any cases where entitlement to the Disability and/or the SDE of CTC is not confirmed on ADD will be put on Tax Credit Workbench (TCW) for a discrepancy enquiry to be opened.