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HMRC internal manual

Claimant Compliance Manual

Closing the Examination: In-Year Recoveries for Claims Made in the Wrong Capacity

Where there was no entitlement to tax credit because the claim was made in the wrong capacity we do not have the power to require the customer to repay this in-year. The claim will have been made in the wrong capacity where

  • the claim was made by a single person when they were a member of a couple for the whole period of claim or
  • the claim was made by a couple when they were never a couple at any time during the period of claim.

You must tell the customer the amount of the in-year overpayment as the amount will not vary. Tell them you are terminating their award and they will receive correspondence regarding the overpayment and how it can be repaid in due course.