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HMRC internal manual

Claimant Compliance Manual

Child Benefit and Tax Credits: Information Powers - Failure to Comply With Notice

Tax credits

If the claimant(s) fails to comply with the information notice, there is a range of actions you can take. You should consider them in each case based on its merits. You can:

  • make an initial decision on whether to make the award and, if so, at what rate (S14 - pre- award examinations)
  • make a revised decision on whether to amend the award to take account of the notified change of circumstances (S15 - unprocessed Change of Circumstances)
  • amend or terminate the award (S16 - post-award examination, S.19 - enquiry)
  • take steps to charge a penalty.

Guidance on when to follow the penalty route and when to amend or terminate the award is included at CCM5210 to CCM5320). Guidance on the procedures for charging penalties for failure to comply with an information notice can be found at CCM10220.

Child Benefit

Pre-decision - you should make a decision that there is no entitlement to Child Benefit

  • If there is no entitlement to either tax credits or Child Benefit you should send the letter at CCM21610 using the wording in (option a).
  • If there is an entitlement to tax credits and an entitlement to Child Benefit you should use the wording in (option b).
  • If there is an entitlement to tax credits (WTC) but not to Child Benefit you should use the wording in (option c).

Child Benefit in payment

You should suspend payment of child benefit and terminate the award 1 month later.