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HMRC internal manual

Tax Credits Manual

Payment: potential entitlement: potential entitlement - review queries - CSSG only (AG)

To deal with an enquiry from a customer or a referral from Post Room Team 4 about a potential entitlement shown on the customer’s award notice or renewals notice, consider steps 1 to 20.

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.

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Step 2

If you receive the error message

  • ‘No match found’, go to Step 3.
  • ‘No award details found’, go to Step 4.

If other circumstances apply, go to Step 5.

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Step 3

If you receive the error message ‘No match found’

  • select [OK] on the error message. You’ll be taken back 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 Step 4.
    • If you have not traced the customer
       
      • place the correspondence in confidential waste
      • take no further action.

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Step 4

If you receive the error message ‘No award details found’, there is no award for the customer

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

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Step 5

Check why you have received the request to release the potential entitlement.

If the customer has requested release of the potential payment due to hardship, go to Step 6.
If the customer has other issues or multiple issues including the release of the potential payment, go to Step 6.

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Step 6

Use Function MAINTAIN POTENTIAL ENTITLEMENT to view any potential entitlement or potential payment details for the customer.

If you receive the error message ‘Potential entitlement details cannot currently be displayed’, go to Step 7.
If you receive the error message ‘No potential entitlement details found’, go to Step 8.
If you’re taken to the Maintain Potential Entitlement screen, go to Step 9.

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Step 7

This message will be displayed when the award hasn’t been fully processed.

If you have the customer on the phone

  • inform them that you cannot give them any information until the claim has been processed
  • check the award status each day until it has been processed
  • go back to Step 6.

If you’re dealing with correspondence from the customer

  • retain the casepapers on your desk
  • BF the case for five days and re-check that it’s been processed
    Note: If the five-day BF period has passed, keep checking every day until it’s been processed.
  • once the case is processed go back to Step 6.

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Step 8

The error message ‘No potential entitlement details found’ will be displayed when there isn’t any current or historical potential entitlement for the award

If the customer does not have an award notice showing ‘Potential Payment’

  • tell the customer that there isn’t any potential entitlement for their award
  • go to Step 19.

If the customer has an award notice showing ‘Potential Payment’, check the earlier awards to determine if any potential entitlement exists. To do this

  • use Function MAINTAIN POTENTIAL ENTITLEMENT
  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]. You’ll be taken to the Select Award screen
  • select each version to check if a potential entitlement exists
    • If potential entitlement exists, go to Step 11.
    • If potential entitlement doesn’t exist, tell the customer that potential entitlement doesn’t exist on their claim and then go to Step 19.

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Step 9

Use Function MAINTAIN HOUSEHOLD NOTES to check for the following household notes

If household note PM42 is shown, go to Step 12.
If household note PM43 is shown, go to Step 12.
If neither household note is shown, go to Step 10.

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Step 10

Use Function MAINTAIN POTENTIAL ENTITLEMENT and go to the Maintain Potential Entitlement screen to gather the information required to answer the customer’s query

If you need to view details of any in-year overpayments on the award

  • select [View Overpayment]. You will be taken to the View Overpayment screen in Function VIEW OVERPAYMENT
  • select [Details]. You will be taken to the View Overpayment - In Year or Cross Year screen, where you will be able to view the overpayment details
    Note: To determine if a previous potential payment has been released in the award period, check the Potential Entitlement History box. The Reason for Change will display ‘Release Manual’ or ‘Release Final’.
    Note: For additional assistance in dealing with the customer’s query, follow the information in the ‘Answers’ on this subject in the tax credits pages of the Customer Adviser Guide.
    • If there is a potential payment on the award, go to Step 11.
    • If the potential entitlement has previously been released, go to Step 15.
    • If there is a potential entitlement amount but the potential payment amount has been reduced to 0 (zero), go to Step 16.

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Step 11

If there is a potential payment on the award and form TC937 hasn’t been issued

  • issue form TC937 to the customer

If there are other issues including the release of a potential payment (but not including hardship)

  • respond to all the customer’s issues in the normal manner and include the potential payments paragraph from form TC937 in the relevant letter from the computer
  • go to Step 19.

If there is a potential payment on the award, and form TC937 has previously been issued, go to Step 12

If there is a potential payment on the award and

  • it’s during the renewal period and the award is finalised, go to Step 17.
  • it’s during the renewal period, the award isn’t yet finalised, and the request was received between 15 March and the date the renewal pack was issued, go to Step 18.

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Step 12

If you are speaking to the customer on the phone, go to Step 13.
If you are dealing with written correspondence, go to Step 14.

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Step 13

Use Function MAINTAIN POTENTIAL ENTITLEMENT to provide the customer with the details they are querying.

If the customer is happy with your explanation, end the phone call and take no further action.
If the customer is happy with your explanation but wishes to dispute an overpayment, follow the guidance in TCM0226220.
If the customer tells you they’re experiencing hardship, follow the guidance in TCM0234080

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Step 14

If you are dealing with written correspondence and the customer isn’t happy with the response they received on the form TC937 or they’re experiencing hardship, follow the guidance in TCM0234080.
If you receive a letter which shows evidence of hardship and includes the release of a potential payment, follow the guidance in TCM0234080.

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Step 15

If you are speaking to the customer on the phone

  • explain that the potential entitlement has already been released and then go to Step 17.

If you are working from written correspondence, check if there is a Manual Correspondence marker on the Application Summary screen within Function VIEW APPLICATION

  • If there is a Manual Correspondence marker, contact the Manual Correspondence Team for advice.
  • If any other circumstances apply
    • complete a standard letter using the CSSG database paragraphs to explain that the potential entitlement has already been released
    • send the completed letter to the customer
  • go to Step 19.

 

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Step 16

If you are speaking to the customer on the phone

  • explain that the potential entitlement has been reduced to zero due to an in-year overpayment so there isn’t an amount currently due
    then
  • go to Step 19.

If you are working from written correspondence, check if there is a Manual Correspondence marker on the claim on the Application Summary screen within Function VIEW APPLICATION

  • If there is a Manual Correspondence marker, contact the Manual Correspondence Team for advice.
  • If any other circumstances apply
    • complete a standard LFC to explain that the potential entitlement has been reduced due to an in-year overpayment on the customer’s award
    • send the completed LFC to the customer
      then
  • go to Step 19.

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Step 17

Use Function VIEW HOUSEHOLD ACCOUNT

  • go to the View Award Period Summary screen for the appropriate award
  • check if the potential payment has already been released
  • explain to the customer that we have done one of the following
    • released the potential payment in full
    • used the potential payment to pay off their overpayment in the current year and paid them any remaining balance
    • used the potential payment to pay back the current year overpayment in full
      then
  • go to Step 19.

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Step 18

If the award isn’t yet finalised and the request was received between 15 March and the date the renewal pack was issued

  • complete the CSSG reply LFC with the appropriate line to take included
  • send the CSSG reply letter to the customer
    then
  • go to Step 19.

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Step 19

Update Household notes with either PM39 or PM40 from TCM0168020. For how to do this, use TCM1000001

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

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Step 20

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