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HMRC internal manual

Claimant Compliance Manual

Discrepancy Enquiries: Action: Claimant disputes HMRC information but you do not agree

If the claimant disputes the information HMRC hold but you decide to amend the award based on HMRC’s information despite the information provided by the claimant, you will make a S19 decision revising their award, using HMRC’s information to determine the award.

If you are working an income discrepancy enquiry and also queried the PY-1 income you will also make a S20 (4) decision revising the PY-1 award.

If you are working an income discrepancy enquiry and also queried the CY estimate you will also make a S16 decision revising the CY award. You must write to the claimant(s) to let them know about your decision. You should always write to the claimant(s) even if you have spoken to them and explained the position on the phone.

Use the standard letter template TCC60. The letter tells the claimant that you will be amending their award and they will soon receive a formal notification of their revised award. It also explains what will happen about recovering any overpaid tax credits.

Where the claim has been made by a couple in a joint household, only one letter should be sent addressed to both claimants. When sending out joint letters the claimants must still be part of a couple and residing at the same address. If they are part of a couple but residing at different addresses or no longer part of a couple, then a separate letter must still be sent to each claimant

If the claimant has authorised an agent to act for them remember to send a copy of the letter to the agent.

You should take the necessary system action to amend the award as soon as possible after you send the letter, and close the case on TCW on the same day you amend the award. The system will send out a new award notice. The claimant then has 30 days to appeal against your decision.

If the claimant appeals, see CCM17540. If the claimant does not appeal, you can close the case.