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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: tax credits: general: action to establish an overpayment is legal

You will need to establish if either a Finalisation Notice (FAN) or a Statement of Account (SOA) has been issued for the award period or if not, if the award period has been auto renewed.

Note: You should continue with recovery as indicated in the guidance below subject to successful completion of the overpayment checklist.

For Finalisation Notices (FANs)

(identified as ‘FINAL EST’, ‘FINAL ACT’ or ‘FINAL AS ACT’)

From the NTC ‘RMBS - Function Menu’ screen

  • select ‘Award’ then ‘View’
  • enter the ‘NINO’, ‘All’ and ‘OK’.

From the ‘Select Award’ screen

  • check to establish if there is a finalised award (whether issued or not) for the relevant period end date.

If the latest version has been issued

  • continue with recovery.

If not

  • check to see if there is another finalised award version with an issue date for the same period end.

If yes

  • check to see if the amounts of the issued version are the same as the latest unissued version.

[To do this, in the ‘Select Award’ screen

  • click on the latest issued version
  • note the WTC and CTC amounts displayed in the View Award Summary screen
  • click on unissued version
  • compare the WTC and CTC amounts in the View Award Summary screen with those you have already noted.]

If the WTC and CTC award amounts are the same for both versions

  • continue with recovery.

If not

  • check to see if the claim has been legally refinalised retrospectively.

[To do this, select View Household Notes

  • look for a message in the Retained Notes box showing that a TC953, 954 or 957D has been issued for the tax year you are working on.]

If yes

  • continue with recovery.

If not

  • go to ‘Auto renewal cases’.

If auto renewal applies

  • continue with recovery.

If not

  • continue to stockpile the case to await further guidance.

For Statements of Account (SOA)

[Note: This section requires access to NTC via ‘NTC view BS’]

From the NTC ‘View Award’ - ‘Select Award’ screen

  • check if any SOA for the appropriate period end date (award version) has been issued.

If yes

  • continue with recovery.

If not in the ‘Function Menu’ screen

  • click on ‘Renewal’ and ‘View S17 Details’
  • enter the ‘NINO’ and select ‘All’
  • click on ‘OK’.

[You may be directed to the ‘Select Household’ screen if there is more than one household (single and joint). If so,

  • click on the appropriate entry.]

Then, from the ‘Select S17 Period’ screen

  • select the year prior to the one you previously identified as having an unissued SOA. Then in the ‘Status’ field
  • check if either of the following messages is displayed

    • ‘Terminated At 1SD’ or
    • ‘Terminated by Operator’.

If yes

  • continue to stockpile the case to await further guidance.

If not

  • continue with recovery.

Auto renewal cases

[Note: This section requires access to NTC via ‘NTC view BS’]

If legality has not been established following application of the above process (for FANs only) you should check if the award period ended has been auto renewed.

To establish if auto renewal applies you will need to access NTC via ‘NTC view BS’ and then ‘VBS View’. In the ‘Function Menu’ screen

  • click on ‘Renewal’ and ‘View S17 Details’
  • enter the ‘NINO’ and select ‘All’
  • click on ‘OK’.

[You may be directed to the ‘Select Household’ screen if there is more than one household (single and joint). If so,

  • click on the appropriate entry.]

Then, from the ‘Select S17 Period’ screen

  • establish from the ‘Status’ column for the appropriate period ‘End’ date if the period has been auto renewed (indicated by ‘Auto renewed (date)’).

If yes

  • continue with recovery.

If not

  • continue as per unissued FAN above.