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Liaison: Claimant Compliance Officer uncovers income issues during a Tax Credits Enquiry or Examination
The Customer(s) is not in SA
If the customer is not in SA and a Claimant Compliance Officer (CCO) discovers an undeclared source that means that the customer should be in SA, the CCO should get the details of the extra source and amend the award in accordance with the details provided. They will not challenge the amount.
The CCO will ensure that details are passed to the CCRO. The CCRO will risk assess and pass to the Right Track Team.
If it is decided to open a Section 9A enquiry on receipt of the return and following that enquiry the income figure is subsequently amended, then S20 TCA 2002 allows Tax Credits to change the Tax Credits award again. SA Enquiry officers must ensure that Tax Credits are advised of the change to the SA income. In these circumstances it is advisable that the SA Enquiry officer liaise with the CCO.
The Customer is already in SA and the Tax Credits enquiry establishes an additional SA source or that a disclosed SA source may be incorrect
The CCO can continue to work the enquiry around personal circumstances but they must refer the information regarding income to the CCRO to risk assess the SA side.
Settlement of the Tax Credits enquiry must be delayed until either the CCRO decides the information does not merit an enquiry or the correct level of income is established and reported back to Tax Credits. The customer should be told why the Tax Credits enquiry cannot be settled. If the customer applies for the enquiry to be completed see CCM12310.
CCRO must inform Tax Credits if the case will be taken up for an SA enquiry or confirm that the decision has been made to accept the return figures.
If after risk assessment SA decline to make an enquiry then the SA figure as returned has to be used for Tax Credits purposes.
If an SA enquiry is opened then this should be worked in conjunction with the existing Tax Credits S19(1) enquiry in accordance with the instructions in CCM12710 to CCM12740.
When the income situation is resolved the Tax Credits enquiry can be brought to completion.
If, however, you anticipate any significant delay in concluding the SA enquiry into income, you should correct the tax credit CY award for other proven risks by making a S16 decision. Then when the SA income position is resolved the tax credit enquiry can be concluded by correcting all awards as necessary.