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HMRC internal manual

Claimant Compliance Manual

Child Benefit and Tax Credits: Making A Decision

Tax credits

S16(1) allows the Board to make a decision on the claimant’s entitlement to tax credits where the Board has reasonable grounds for believing the award to be incorrect. S16(1) does not contain any details as to how the Board should reach the decision.

(See CCM10270 for guidance on the factors to take into account when making a decision).

Child Benefit

  • advise that the claim will be suspended if the information is not provided
  • make a formal decision on the claim (pre-payment)
  • revise or supersede the claim

Revising or superseding a decision

The Decision Maker must decide to make, revise or supersede a claim on the balance of probability.


The child, Adrian is shown on the P14 of Annie P’s Supermarket Group as earning £7000 in 2004-05.

No response is made to your request for information that he is still in full time education. Whilst it is possible that he is earning this much on the twilight shift and by working all school holidays the balance of probability is that he is no longer in full time education and the tax credit may be amended. Although the P14 does not show the date an employment commenced it would be reasonable to assume, on the balance of probabilities, in this scenario that Adrian had commenced work at the beginning of the tax year or, if later, when he became 16 and supersede the Child Benefit decision. The start date may be available on COP or CODA.

If, however, the P14 only showed income of £2000 this is not sufficient information to amend the tax credit award or supersede the Child Benefit decision.