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HMRC internal manual

Tax Credits Manual

Payment: potential entitlement: potential entitlement - review queries - Post Room Team 4 only (AG)

To deal with a written enquiry from a customer or a referral from another Operations team about a potential entitlement shown on the customer’s award notice or renewals notice, consider steps 1 to 14.

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 any 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 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 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 made a complaint about the payment being withheld, go to Step 6.
If the customer hasn’t made a complaint about the payment being withheld, go to Step 8.

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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 are taken to the Maintain Potential Entitlement screen, go to Step 9.

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Step 7

The error message ‘Potential entitlement details cannot currently be displayed’ will be displayed when the award hasn’t been fully processed. When the message displays

  • 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

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Step 8

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

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 determine if a potential entitlement exists

If potential entitlement does exist, go to Step 9.
If potential entitlement does not exist

  • Update Household notes with PM41 from TCM168020. For how to do this, use TCM100001{.no-outline}
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
  • place the correspondence in confidential waste
  • take no further action.

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Step 9

Use Function MAINTAIN HOUSEHOLD NOTES to check for either PM42 or PM43

  • If household note PM42 is present, go to Step 12.
  • If household note PM43 is present, place the correspondence in confidential waste and take no further action.
  • If neither message is present, go to Step 10.

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Step 10

Use Function MAINTAIN POTENTIAL ENTITLEMENT to answer the customer’s query using the information on the screen.

To view details of any in-year overpayments on the award

  • go to the Maintain Potential Entitlement screen
  • select [View Overpayment]. You’ll be taken to the View Overpayment screen in Function VIEW OVERPAYMENT
  • select [Details]. You’ll be taken to the View Overpayment - In Year or Cross Year screen where you’ll be able to view the overpayment details
    Note: To determine if a previous potential payment has been released in the award period, look in 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’s a potential payment on the award, go to Step 11.
If the potential entitlement has previously been released, go to Step 12.
If there’s a potential entitlement amount but the potential payment amount has been reduced to 0 (zero), go to Step 13.

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Step 11

If there is a Manual Correspondence marker on the claim, contact the Manual Correspondence Team for advice.
If there isn’t a Manual Correspondence marker on the claim

  • issue letter TC937 to the customer
  • go to Step 13.

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Step 12

Refer the case to Customer Service and Support Group (CSSG), then

  • record all the details on form TC648
  • send the completed form TC648, along with the associated casepapers, to the appropriate team
  • 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.
  • go to Step 13.

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Step 13

Use Function MAINTAIN HOUSEHOLD NOTES

If you have sent a letter to the customer, update household notes with PM42 from TCM0168020. For how to do this, use TCM100001
Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
then

If you have referred the case to CSSG, update household notes with PM43 from TCM0168020. For how to do this, use TCM100001
Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

  • take no further action.

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Step 14

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