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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Extra information - miscellaneous information: Validate high value payments - examples

Overlapping awards may occur where, following an amendment,

  • the effective date of the claim is backdated to overlap with a previous award ()

or

  • an award has been re-instated or the period extended so that it overlaps with a subsequently-received claim’s award ().

Example 1

Claim 1 is made for a joint household that’s awarded from 09/05/2004 until the household ends on 05/10/2004.

Claim 2 is made for a single household and the effective date of claim is set as 06/10/2004 (the day after the previous household ended).

A change of circumstances is applied to claim 2 and History details for an entitlement element are entered with a start date of 30/09/2004, which is prior to 06/10/2004.

When the claim is recalculated, a new claim effective date is applied of 30/09/2004, which causes claim 1 and claim 2 to overlap.

Example 2

Claim 1 is made for a joint household that is awarded from 09/05/2004 until the household ends on 05/10/2004.

Claim 2 is made for a single household and the effective date of claim is set as 06/10/2004 (the day after the previous household ended).

The household end date for claim 1 is removed either by an operator or due to a system problem.

Claim 1 is recalculated and payments are generated for the period from 09/05/2004 to 05/04/2005, creating an overlapping award with claim 2.