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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Payment: potential entitlement: potential entitlement - release (AG)

Background

You may receive a request from a customer to release the potential entitlement prior to their award being finalised. You can’t do this unless you have the High Level User (HLU) role.

The amount will only be released if the customer tells us they are experiencing hardship.

Guidance

To deal with a request to release a potential entitlement, consider steps 1 to 12.

Step 1

Before continuing with this guidance, follow the guidance in TCM0138020

then

  • use Function VIEW APPLICATION
  • enter the customer’s NINO in the Key Entry Data screen
  • select the Latest checkbox
  • select [OK]
  • go to .

Step 2

If

  • you receive the error message ‘No match found’, go to .
  • you receive the error message ‘No award details found’, go to .
  • any other circumstances apply, go to .

Step 3

If you receive the error message ‘No match found’

  • select [OK] on the error message. You’ll be returned to the Key Entry Data screen
  • select [Trace]. You’ll be taken to Function TRACE CITIZEN
  • follow the guidance in TCM1000115 

then

* If you have traced the customer, go to .
* If you haven’t traced the customer

* place the correspondence in confidential waste
* take no further action.

Step 4

If you receive the error message ‘No award details found’, there isn’t an award for the customer

  • tell the customer that an award doesn’t exist for them and therefore no potential entitlement exists
  • place the correspondence in confidential waste
  • take no further action.

Step 5

Check the reason for the request to release the potential entitlement. If it’s because

  • the customer has told us they’re experiencing hardship, go to .
  • the customer hasn’t told us any other reason, go to .

Step 6

If you determine that the customer

  • is experiencing hardship, go to .
  • isn’t experiencing hardship, go to .

Step 7

If

  • there is a Manual Correspondence marker on the claim, contact the Manual Correspondence Team for advice.
  • any other circumstances apply

    • complete a free format LFC with the following details

    • customer’s name
    • customer’s address
    • customer’s NINO
    • date
    • a full explanation of your reasons for not upholding the customer’s explanation of hardship

    • send the completed LFC to the customer

    then

    • go to .

Step 8

Use Function MAINTAIN POTENTIAL ENTITLEMENT

  • enter the customer’s NINO in the Key Entry Data screen
  • select the Latest checkbox
  • select [OK]

then

  • go to .

Step 9

Do you have the High Level User (HLU) role to enable you to release the potential entitlement?

  • yes, go to .
  • no

    • pass the case to the officer on your team with the role
    • take no further action.

Step 10

To release the potential entitlement

  • in Function MAINTAIN POTENTIAL ENTITLEMENT
  • go to the Maintain Potential Entitlement screen
  • select [Release PE]. The message ‘Do you wish to release the Potential Entitlement?’ will appear
  • select [Yes] in the message box

then

  • go to .

Step 11

Use Function MAINTAIN HOUSEHOLD NOTES to record the following dependant on what action you’ve taken

‘TCMZ Potential Entitlement released’

‘TCMZ Potential Entitlement not released, letter issued’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

then

  • go to .

Step 12

Link together all the documents for the case and send them to remote storage. Follow the guidance in TCM0074140.