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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Payment - direct payments: Direct payments - validate large payments

Background

‘Validate Large Payments’ ‘VLP’ team check claims where a high value payment (over £1,200) is due to be made to ensure that the customer is receiving the correct entitlement and also to prevent overpayments.

The check is generated by the production of a daily listing of high value payments.

Where an amendment has been done by the ‘VLP’ team, you must not apply any further amendments or changes to that element of the claim. You must first contact the ‘VLP’ team for advice.

The ’VLP’ team will record details of amendments they have done in the Household Notes.

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020 
  • you have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

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.

Step 1

Identify all high value payments due to be issued for this claim and make a note;

  • which customer or partner the payment will be made to
  • which year (or years) they are for. For how to do this use TCM1000487 
  • go to .

Step 2

If it is not a Compliance, Complex or Open Appeal case, go to .

If it is a Compliance, Complex or Open Appeal case, go to .

Step 3

Check if the customer and if applicable the partners address is ‘RLS’. For how to do this, use TCM1000510.

If a ‘RLS’ marker is present on the claim, go to .

If a ‘RLS’ marker is not present on the claim, go to .

Step 4

Suspend payments. For how to do this, use TCM1000232

  • update ‘NTC’ listing
  • update Household Notes with the message PJ07 from TCM0168020. For how to do this, use TCM1000001 
  • pass to your manager for ‘FLM’ check
  • complete stats sheet
  • take no further action.

Step 5

If you are dealing with a case from the ‘NTC’ listing, go to .

If you are dealing with correspondence received, or any other type of ‘WAM’ referral, go to .

Step 6

Quality check the income and ‘IS/JSA/PC’. For how to do this, use TCM1000060 and TCM1000342.

If the case has passed the quality check, go to .

If the case has not passed the quality check, go to .

If there is no ‘PAYE’ or ‘SA’ income found, go to .

If the ‘PAYE’ or ‘SA’ return is outstanding, go to .

If you have identified errors on the claim other than income or ‘IS/JS/PC’, go to .

Step 7

  • Update ‘NTC’ listing
  • complete locally held stats sheet
  • update Household Notes with the messages PJ08 or PJ09 from TCM0168020. For how to do this , use TCM1000001 
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 8

Refer the case to Compliance. For how to do this, use TCM1000407 

  • update ‘NTC’ listing
  • complete locally held stats
  • update Household Notes with the message PJ26 from TCM0168020. For how to do this, use TCM1000001 
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 9

Check ‘Specified Dates’, for how to do this, use TCM1000002.

If the case failed the quality check ‘Pre Specified Date’ go to .

If the case failed the quality check ‘Post Specified Date’, go to .

Step 10

Before making any changes follow the guidance at TCM0042280 

  • amend the customers income using the figures held on ‘PAYE’ or ‘SA’ or ‘JSA?IS?MIG’ marker using the details found on ‘ADD’. For how to do this , use TCM1000201 and TCM0042080 
  • then go to .

Step 11

Check if the payment has been issued. For how to do this, use TCM1000435.

If payment has not been issued, go to .

If payment has been issued, go to .

Step 12

Suspend payments. For how to do this, use TCM1000232 then

  • remove payment suspension if it has been set. For how to do this, use TCM1000327.
  • issue TC1088 to the customer and retain a copy

update retained Household Notes with the message PJ12 or PJ13 from TCM0168020. For how to do this, use TCM1000001 

  • complete ‘Error Log’ and stats sheet
  • update ‘NTC’ listing
  • complete an MS164. For how to do this, use TCM1000292 
  • send a copy of letter to storage
  • pass to your manager for ‘FLM’ check
  • take no further action

Step 13

  • Issue TC1088 to the customer and retain a copy
  • update retained Household Notes with the message PJ12 or PJ13 from TCM0168020. For how to do this, use TCM1000001 
  • complete ‘Error Log’ and stats sheet
  • update ‘NTC’ listing
  • complete an MS164. For how to do this, use TCM1000292 
  • send a copy of letter to storage
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 14

Before making any changes follow the guidance at TCM0042280 

  • amend the customers income using the figures held on ‘PAYE’ or ‘SA’ or ‘JSA/IS/MIG’ marker using the details found on ‘ADD’. For how to do this , use TCM1000201 and TCM0042080
  • then go to .

Step 15

Check if the payment has been issued. For how to do this, use TCM1000435.

If payment has not been issued, go to .

If payment has been issued, go to .

Step 16

Suspend payments. For how to do this use TCM1000232 then

  • remove payment suspension if it has been set. For how to do this , use TCM1000327 
  • issue TC2002 to the customer and retain a copy
  • update retained Household Notes with the message PJ13 or PJ14 from TCM0168020. For how to do this, use TCM1000001 
  • complete ‘Error Log’ and stats sheet
  • update ‘NTC’ listing
  • complete an MS164. For how to do this, use TCM1000292 
  • send a copy of letter to storage
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 17

  • Issue TC2002 to the customer and retain a copy
  • update retained Household Notes with the message PJ13 or PJ14 from TCM0168020. For how to do this, use TCM1000001 
  • complete ‘Error Log’ and stats sheet
  • update ‘NTC’ listing
  • complete an MS164. For how to do this, use TCM1000292 
  • send a copy of letter to storage
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 18

Photocopy original documents and return these to the customer retaining the copies.

If no evidence has been sent ( including WAM referrals)

  • update Household notes with the message PJ22 from TCM0168020. For how to do this, use TCM1000001 
  • complete locally held stat sheets
  • send correspondence to storage. Follow the guidance in TCM0074140 
  • take no further action.

If evidence has been sent, go to .

Step 19

If the evidence is accepted, go to .

If the evidence is not accepted, go to .

Step 20

Amend the customer’s claim using the evidence provided. For how to do this, use TCM1000201 and TCM0042080 

  • issue TC2001
  • update Household Notes with the message PJ23 from TCM0168020. For how to do this, use TCM1000001 
  • go to .

Step 21

Do not amend the customer’s claim on the ‘tax credits computer’

  • issue TC2001
  • update Household Notes with the message PJ25 from TCM0168020. For how to do this, use TCM1000001
  • go to .

Step 22

Check if a payment suspension has been set. For how to do this, use TCM1000368 

  • remove payment suspension if it has been set. For how to do this, use TCM1000327 
  • complete locally held stats
  • pass to your manager for ‘FLM’ check
  • send correspondence to storage. For how to do this, use TCM0074140
  • take no further action.

Step 23

If it is a Complex, Compliance or Appeal case

  • phone the relevant ‘Compliance Officer’ or ‘Appeals officer’ or ‘International Team’ for further advice and ask if they want the payment to be made.

If payment can be made, go to .

If payment cannot be made, go to .

Step 24

  • Update Household Notes with the message PJ05 from TCM0168020. For how to do this, use TCM1000001
  • complete locally held stat sheet
  • update NTC listing
  • pass to your manager for ‘FLM’ check
  • take no further action.

Step 25

  • Suspend payments. For how to do this, use TCM1000232
  • update Household Notes with the message PJ06 from TCM0168020. For how to do this. Use TCM1000001 
  • complete stats sheet
  • update NTC listing
  • pass to your manager for ‘FLM’ check
  • take no further action.