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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Payment - overpayments (D-E): overpayments - disputes and manual suspensions - register and maintain

Information

When an award is finalised, a Finalised Award Notice is sent to the customer. This will include information about whether the award was

  • overpaid
  • underpaid

or

  • balanced.

For more information, follow the guidance in TCM0232220.

After receiving a form notifying them of an overpayment, a customer may contact you to dispute their overpayment.

This guidance takes you through the initial action to take when you first receive contact from the customer about disputing their overpayment. It also tells you how to suspend overpayment recovery if this is appropriate.

If an overpayment shows for multiple years, you may need to suspend recovery for each of those years.

You must use the second part of this guidance when you are following the guidance in TCM0224120.

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

If you are dealing with a returned form TC908

  • link it with the original correspondence
  • go to .

If you are dealing with an expired BF date, go to .

If you are dealing with new correspondence, go to .

If you need to set a Manual Suspension marker, go to .

If you need to remove a Manual Suspension marker, go to .

Step 2

If you are dealing with an expired BF date and this is the first time it has expired

  • prepare and send letter TC609 to the customer
  • set a BF date for the correspondence of 15 days in the future
  • take no further action.

If you are dealing with an expired BF date and this is the second time it has expired

  • dispose of the correspondence

Note: Follow your local procedures to dispose of the correspondence within the protectively marked waste.

  • take no further action.

Step 3

Check the correspondence.

If the correspondence includes the customer’s name and NINO

  • complete the cover sheet with the customer’s name and NINO and keep this with the correspondence
  • go to .

If the correspondence does not include the customer’s NINO and/or you cannot establish the customer’s details from the information provided

  • attempt to trace the NINO. For how to do this, use TCM1000014
  • go to .

Step 4

If you cannot trace the NINO

  • prepare and send form TC908 (Word 188KB) to the customer
  • set a BF date for the correspondence of 15 days in the future
  • take no further action.

If you can trace the NINO

  • complete the cover sheet with the customer’s name and NINO and keep this with the correspondence

If the warning message ‘You are unauthorised to access this claim’ or a similar message displays

  • this is a secure or sensitive case. Follow the guidance in TCM0068160.

If the warning message ‘You are unauthorised to access this claim’ or a similar message does not display

  • go to .

Step 5

Check if the entries ZZ13 or ZZ29 about ‘Internal Governance Criminal Investigations (IG-CI)’ Corrections are on any award or if the claim is a Complex case. For how to do this, use TCM1000067.

If one of the ‘IG-CI’ Correction entry is present in the ‘Compliance’ category, go to .

Note: The ‘IG -IC’ Corrections Team was formerly the Board’s Investigation Office (BIO) Corrections Team and some notes will reflect this.

If you establish the case is a Complex Case and the customer is disputing the overpayment or has made a complaint

  • make a note on the cover sheet that it is a Complex case

Note: Complex debt and complaint cases should to be sent to the relevant Customer Service Support Group (CSSG) Team dealing with that case.

  • go to .

If you establish the case is a Complex case and the customer is not disputing the overpayment or making a complaint

  • select the relevant category on the cover sheet
  • send the documents to the International (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • go to .

If the following warning message ‘You are unauthorised to access this claim’ or a similar message displays

  • this is a secure or sensitive case. Follow the guidance in TCM0068160.

If any other circumstances apply, go to .

Step 6

Check the correspondence to find out why the customer has sent a letter, form TC846 or any other documentation.

If the customer wishes to dispute an overpayment, go to .

If the customer is requesting a review of a previous dispute decision

  • select the relevant category on the cover sheet
  • send the correspondence to the relevant CSSG Team
  • do not suspend the recovery of the overpayment
  • go to .

Note: All correspondence from DMB will be highlighted with ‘DMB Originating’ in red ink at the top of the form and are known as ‘Red Dot Cases’

If the correspondence originates with Debt Management and Banking (DMB) and the customer is disputing their overpayment, go to .

If the correspondence originates with DMB and the customer is not disputing their overpayment

  • complete the cover sheet with the reason for the correspondence
  • send the correspondence to the relevant team

Note: Your manager will have the address of the relevant team.

  • take no further action.

Step 7

Check the correspondence and the check tax credits computer for which year the customer is disputing. For how to do this, use TCM1000067.

If it is not clear which year the customer is disputing, go to .

If it is clear which year the customer is disputing and there is not a record of a previous dispute against that overpayment, go to .

If it is clear which year the customer is disputing and they have an open dispute relating to this overpayment or a Manual Suspension has already been recorded against this overpayment

  • complete the cover sheet with

‘Open dispute recorded’

or

‘Manual Suspension recorded’

  • tick the relevant category on the cover sheet
  • send the correspondence to the relevant CSSG Team
  • go to .

Step 8

If you need to register a manual suspension

  • set the manual suspension marker. For how to do this, use TCM1000335
  • go to .

If you need to remove a manual suspension

  • remove the manual suspension marker. For how to do this use TCM1000336
  • take no further action.

Step 9

Check the period the overpayment relates to. For how to do this, use TCM1000339.

If you need to register a dispute for any of the overpayments, go to .

If you do not need to register a dispute for any of the overpayments, go to .

Step 10

Register the dispute.

Note: If the case is a complex case and a dispute has been registered, send the correspondence to the relevant team. Your manager will have the address of the team.

  • Register the dispute. For how to do this use, TCM1000338

then

  • go to .

Step 11

If the overpayment recovery has not been suspended because the customer has requested recovery of their overpayment be continued

  • update Household Notes with message OD99 from TCM0166020 selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • go to .

If the overpayment recovery has been suspended and the overpayment is direct recovery

  • update Household Notes with message OD99 from TCM0166020 selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • go to .

Note: The ‘Suspend Recovery’ checkbox will automatically complete and be disabled on direct recovery cases where the recovery is not subject to enforcement action. This will prohibit the checkbox being de-selected. If the recovery is subject to enforcement action, the ‘Suspend Recovery’ checkbox will be blank and disabled.

If the overpayment recovery has not been suspended because the customer has requested recovery of their overpayment be continued

  • update Household notes with message OD02 from TCM0166020selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • go to .

If the overpayment recovery has not been suspended due to enforcement action being taken, the ‘Suspend Recovery’ checkbox is greyed out

  • update Household Notes with message OD02 From TCM0166020selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • go to .

If the overpayment recovery has not been suspended because there is not an overpayment outstanding because the overpayment has been fully recovered

  • update Household notes with message OD02 from TCM0166020 selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001
  • go to .

Step 12

Send the casepapers

  • send any casepapers to the IG(CI) Corrections Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

then

  • go to .

Step 13

If you have not already done so

  • update Household Notes with the messages OD02, OD99, from TCM0166020 selecting the ‘Debt Recovery’ category. For how to do this, use TCM1000001

then,

  • place the correspondence in the appropriate tray ready to be sent to the relevant CSSG Team. Your manager will have the address of the team.