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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Appeals - Mandatory Reconsideration - process

Checklist

Before you follow this guidance make sure you

  • follow the guidance in TCM0138020 
  • have the correct user roles to follow this guidance
  • have access to the Appeals database.

Background

From 6 April 2014 HMRC are introducing a change to the appeals process for tax credits, in line with the Welfare Reform Act 2012. If a customer does not agree with a decision on their entitlement, they will have to ask HMRC to reconsider the decision before they can appeal to Her Majesty’s Courts and Tribunal Service (HMCTS). This is known as a Mandatory Reconsideration.

Guidance

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.

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Step 1

Check the correspondence and identify what you are dealing with.

If you are dealing with a new Mandatory Reconsideration request, go to Step 2.

If you are dealing with new information from the customer, go to Step 4.

If you are dealing with an expired BF and no reply from the customer, go to Step 5.

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Step 2

Check the correspondence and identify the reason why the customer has asked for the decision to be reconsidered. To do this obtain all the relevant evidence by checking some, or all of the following:

  • the tax credits computer (NTC), for how to do this use TCM1000012 
  • the case papers. If you need to retrieve these from storage use TCM0074060 
  • Contact Management Application (CMA)
  • phone call recordings
  • Access to DWP Data (ADD system), for how to do this use TCM1000014 
  • Tax Credit Technical Manual (TCTM)
  • Tax Credit Manual (TCM)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Claimant Compliance Management Information system (CCMIS)
  • Health check, Enabling, Aftercare , Leverage (HEAL)
  • Tax Credit Workbench (TCW)

Note: This list is not exhaustive.

Note: If you do not have access to check one of the items listed in the bulleted lists, ask a case worker to make the check for you.

If further information is required to complete the Mandatory Reconsideration, go to Step 3.

If further information is not required to complete the Mandatory Reconsideration, go to Step 4.

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Step 3

Note: If the customer has an authorised representative you can talk to them providing they have authority to act on the customer’s behalf. Check Household Notes for authority to act, for how to do this use TCM1000067.

Telephone the customer or authorised representative to obtain the information you need, for how to do this use TCM0094080.

Note: Make three attempts to call the customer or authorised representative at various times during the day to maximise the opportunity to contact the customer. Ensure that your last attempt is made before final post collection after lunch, make your third attempt on the following day but before the last post collection.

If you have been able to contact the customer or authorised representative and you agree to overturn the decision based on new information

  • tell the customer or authorised representative that we will update our records
  • tell the customer or authorised representative that we will send them a new decision notice
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • correct the decision on NTC and update Household Notes with the message AR17 from TCM0156020, for how to do this use TCM1000001
  • update Household Notes with the message AR08 from TCM0156020, for how to do this use TCM1000001 
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • details of previous instances of non compliance (if applicable)
    • the reason(s) the customer is disputing the outcome
    • whether the decision has changed following the Mandatory Reconsideration
    • a summary of the evidence used to make the Mandatory Reconsideration decision
    • the weight placed on the various pieces of evidence
    • details of any contact or attempts to contact the customer at the Mandatory Reconsideration stage
    • the regulations used in the decision making process

Note: You can find the regulations in the Tax Credit Technical Manual (TCTM)

* any other information that may be useful to HMCTS.
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file the case papers locally for a period of 3 months
  • take no further action.

If you have been able to contact the customer or authorised representative and they agree that the original decision was correct

  • tell the customer or authorised representative that we will send them a Mandatory Reconsideration decision notice TC1170
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • update Household Notes with the message AR06 from TCM0156020, for how to do this use TCM1000001 
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • details of previous instances of non compliance (if applicable)
    • the reason(s) the customer is disputing the outcome
    • whether the decision has changed following the Mandatory Reconsideration
    • a summary of the evidence used to make the Mandatory Reconsideration decision
    • the weight placed on the various pieces of evidence
    • details of any contact or attempts to contact the customer at the Mandatory Reconsideration stage
    • the regulations used in the decision making process

Note: You can find the regulations in the Tax Credit Technical Manual (TCTM)

* any other information that may be useful to HMCTS.
  • send the customer two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file the case papers locally for a period of 3 months
  • take no further action.

If you have been able to contact the customer or authorised representative and they disagree that the original decision was correct and wish to appeal, go to Step 9.

If you have not been able to contact the customer or authorised representative by telephone 

  • send the customer or authorised representative a Mandatory Reconsideration triage letter TC2016
  • update Household Notes with the message AR10 from TCM0156020, for how to do this use TCM1000001 
  • BF the case for 21 days
  • take no further action.

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Step 4

Check if the customer would like to withdraw the Mandatory Reconsideration they requested  which has not yet been decided.

If the customer wants to withdraw the Mandatory Reconsideration

  • prepare the case as instructed by the locally held Mandatory Reconsideration checklist
  • file the case papers locally for a period of three months
  • update Household Notes with message AR16* *from TCM0156020, for how to do this use TCM1000001
  • take no further action.

If the customer does not want to withdraw the Mandatory Reconsideration, go to Step 5.

Step 5

Check if a Mandatory Reconsideration decision has already been made prior to the correspondence being received, for how to do this use TCM1000067.

Note: If the customer has an authorised representative you can talk to them providing they have authority to act on the customer’s behalf. Check Household Notes for authority to act, for how to do this use TCM1000067.

If a Mandatory Reconsideration decision has been made

  • send letter TC1173 to the customer telling them that we have already made our decision on the information that we had and that if they wish to appeal they will have to submit an appeal to HM Revenue Courts Tribunal Service, or to the Appeals Service if they live in Northern Ireland
  • update Household Notes with message AR04 from TCM0156020, for how to do this use TCM1000001 
  • take no further action.

If a Mandatory Reconsideration has not been made, go to Step 6.

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Step 6

Consider the information you have and decide whether the original decision was correct.

If the original decision was incorrect, go to Step 7.

If the original decision was correct, go to Step 8.

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Step 7

Contact the customer or authorised representative by telephone to tell them that our original decision was wrong, for how to do this use TCM0094080.

Note: Make three attempts to call the customer or authorised representative at various times during the day to maximise the opportunity to contact the customer. Ensure that your last attempt is made before final post collection after lunch, make your third attempt on the following day but before the last post collection.

If you have been able to contact the customer or authorised representative

  • tell the customer or authorised representative that we have changed our original decision
  • tell the customer or authorised representative that we will send them a Mandatory Reconsideration decision notice TC1170 with the new decision and a new award notice will follow
  • complete a TC648 with details of your conversation
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • correct the decision on NTC and update Household Notes with the message AR17 from TCM0156020, for how to do this use TCM1000001
  • complete the appropriate coloured coversheet, following local procedures
  • complete the lessons learnt referral, following local procedures
  • update Household Notes with the message AR08 from TCM0156020, for how to do this use TCM1000001 
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • details of previous instances of non compliance (if applicable)
    • the reason(s) the customer is disputing the outcome
    • whether the decision has changed following the Mandatory Reconsideration
    • a summary of the evidence used to make the Mandatory Reconsideration decision
    • the weight placed on the various pieces of evidence
    • details of any contact or attempts to contact the customer or authorised representative at the Mandatory Reconsideration stage
    • the regulation(s) used in the decision making process

Note: You can find the regulations in the Tax Credit Technical Manual (TCTM)

* any other information that may be useful to HMCTS.
  • send the customer or authorised representative two copies of the Mandatory Reconsideration notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file the case papers locally for a period of 3 months
  • take no further action.

If you have not been able to contact the customer or authorised representative

  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453
  • correct the decision on NTC and update Household Notes with the message AR17 from TCM0156020, for how to do this use TCM1000001
  • complete the appropriate coloured coversheet, following local procedures
  • complete the lessons learnt referral, following local procedures
  • update Household Notes with the message AR08 from TCM0156020, for how to do this use TCM1000001 
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • the regulation(s) used in the decision making process

Note: You can find the regulations in The Tax Credit Technical Manual (TCTM),

* details of previous instances of non compliance (if applicable)
* the reason(s) the customer is disputing the outcome
* whether the decision has changed following the Mandatory Reconsideration
* a summary of the evidence used to make the Mandatory Reconsideration decision
* the weight placed on the various pieces of evidence
* details of any contact or attempts to contact the customer or authorised representative at the Mandatory Reconsideration stage
* any other information that may be useful to HMCTS.
  • send the customer or authorised representative two copies of the Mandatory Reconsideration notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file case papers locally for a period of 3 months
  • take no further action.

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Step 8

Telephone the customer or authorised representative to tell them that the original decision was correct, for how to do this use TCM0094080.

Note: Make three attempts to call the customer or authorised representative at various times during the day to maximise the opportunity to contact the customer. Ensure that your last attempt is made before final post collection after lunch, make your third attempt on the following day but before the last post collection.

If you have been able to contact the customer or authorised representative and they agree that the original decision was correct

  • record your conversation on a TC648
  • tell them that we will send them a Mandatory Reconsideration decision notice TC1170
  • complete the appropriate coloured coversheet, following local procedures
  • update Household Notes with the message AR06 from TCM0156020, for how to do this use TCM1000001 
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • the regulation(s) used in the decision making process

Note: You can find the regulations in the Tax Credit Technical Manual (TCTM)

* details of previous instances of non-compliance (if applicable)
* the reason(s) the customer is disputing the outcome
* whether the decision has changed following the Mandatory Reconsideration
* a summary of the evidence used to make the Mandatory Reconsideration decision
* the weight placed on the various pieces of evidence
* details of any contact or attempts to contact the customer or authorised representative at the Mandatory Reconsideration stage
* any other information that may be useful to HMCTS.
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file case papers locally for a period of three months
  • take no further action.

If you are able to contact the customer and they do not agree that the original decision was correct, go to Step 9.

If you are unable to contact the customer

  • complete the appropriate coloured coversheet, following local procedures
  • update Household Notes with the message AR07 from TCM0156020, for how to do this use TCM1000001 
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • update the Appeals database following local procedures
  • complete the Mandatory Reconsideration decision notice TC1170 with the following:

    • full details of the decision under dispute (also include all elements of the decision not under dispute)
    • the regulation(s) used in the decision making process

Note: You can find the regulations in The Tax Credit Technical Manual (TCTM), details of previous instances of non compliance (if applicable)

* the reason(s) the customer is disputing the outcome
* whether the decision has changed following the Mandatory Reconsideration
* a summary of the evidence used to make the Mandatory Reconsideration decision
* the weight placed on the various pieces of evidence
* details of any contact or attempts to contact the customer or authorised representative at the Mandatory Reconsideration stage
* any other information that may be useful to HMCTS.
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held MR checklist
  • file case papers locally for a period of 3 months
  • take no further action.

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Step 9

Note: If the customer now lives overseas they should submit their appeal to the relevant office where they were previously resident in Great Britain.

Check where the customer lives, for how to do this use TCM1000111.

If the customer lives in Northern Ireland

  • tell the customer or authorised representative that we will send them two copies of the Mandatory Reconsideration decision notice TC1170 as they will need a copy to submit with their appeal
  • tell the customer or authorised representative to send their appeal to:

The Appeals Service
Millennium House
Great Victoria Street
Belfast
BT2 7AQ

  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • update the Appeals database following local procedures
  • update Household Notes with the message AR07 from TCM0156020, for how to do this use TCM1000001 
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file case papers locally for a period of 3 months
  • take no further action.

If the customer lives in England and Wales

  • tell the customer or authorised representative that we will send them two copies of the Mandatory Reconsideration decision notice TC1170 as they will need a copy to submit their appeal
  • tell the customer or authorised representative to send their appeal to

HMCTS
SSCS Appeals Centre
PO Box 1203
Bradford
BD1 9WP

  • update Household Notes with the message AR07 from TCM0156020, for how to do this use TCM1000001 
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • update the Appeals database following local procedures
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file case papers locally for a period of 3 months
  • take no further action.

If the customer lives in Scotland

  • tell the customer or authorised representative that we will send them two copies of the Mandatory Reconsideration decision notice TC1170 as they will need a copy to submit their appeal
  • tell the customer to send their appeal to

HMCTS
SSCS Appeals Centre
PO Box 27080
Glasgow
G2 9HQ

  • update Household Notes with the message AR07 from TCM0156020, for how to do this use TCM1000001 
  • lift the overpayment recovery suspension by removing the appeal marker, for how to do this use TCM1000453 
  • update the Appeals database following local procedures
  • send the customer or authorised representative two copies of the Mandatory Reconsideration decision notice TC1170
  • prepare the case papers as instructed by the locally held Mandatory Reconsideration checklist
  • file case papers locally for a period of 3 months
  • take no further action.