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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to calculate the outstanding overpayment and any recoveries made since the IVA date

Version 3.0

Changes to previous version - Amended guidance. Amendment to step 7

Step 1

If this is a single claim or a joint claim with both customers in an IVA

  • on the ‘Function Menu’
  • select ‘Household’ on the toolbar
  • select ‘View Account’ from the options available. You will be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select the ‘All’ checkbox
  • select the ‘Summary’ checkbox
  • select ‘OK’. You will be taken to the ‘Select Award’ screen
  • select the award period the IVA date falls in

For example: If the IVA date is 17/03/2010, select the award period for 2009-2010.

  • select ‘OK’. You will be taken to the ‘View Award Period Summary’ screen
  • check whether there is an amount shown in the ‘Recovered from this award’ field

Note: You will need to check all subsequent years after the year the IVA date falls in to see if there are any amounts shown in the ‘Recovered from this award’ field for the later awards.

  • go to .

If this is a joint claim and only one customer is in an IVA, go to .

Step 2

If there are any amounts shown in the ‘Recovered from this award’ field for any of the awards you have checked, go to .

If there aren’t any amounts shown in the ‘Recovered from this award’ field for any of the awards you have checked, go to .

Note: Working Tax Credit (WTC) may be recovered from Child Tax Credit (CTC) and CTC may be recovered from WTC.

Step 3

If any of the award periods you are including in the IVA have been re-finalised after the IVA date, go to .

If none of the award periods you are including in the IVA have been re-finalised after the IVA date

  • on the ‘View Award Period Summary’ screen
  • select ‘Cancel’. You will be taken back to the ‘Select Award’ screen
  • select the earliest award period you are including in the IVA
  • select ‘OK’. You will be taken to the ‘View Award Period Summary’ screen
  • on the IVA Worksheet

    • enter any amount shown in the ‘Overpayment Outstanding’ field
    • make a note of any amounts shown in the ‘Payments In’ field
  • select ‘Postings’. You will be taken to the ‘Postings’ screen
  • check the ‘Posting Date’ field to see when the payments in were made
  • on the IVA Worksheet , enter the payments in that were made on or after the IVA date
  • on the IVA cross year recovery worksheet (Excel 17KB), enter any amount shown in the ‘Recovered From Other Awards’ field
  • repeat this step to check later awards for any amounts shown in the ‘Recovered from this award’ field and enter the amounts on the IVA cross year recovery worksheet to decide if the recovery was made on or after the IVA date. Include on the IVA Worksheet any recoveries that were made on or after the IVA date

Note: When checking subsequent years after the IVA date you may also need to check the ‘View Direct Payment Schedule - Household’ screen to establish whether the recovered amounts relate to the overpayment you are investigating. Only recovered amounts relating to the overpayment you are investigating should be included on the IVA Worksheet.

  • when checking the year that the IVA was set up in for amounts shown in the ‘Recovered from this award’ field on the ‘View Award Period Summary’ screen, select ‘Schedule’. You will be taken to the ‘View Direct Payment Schedule - Household’ screen
  • check the issue dates and amounts recovered to identify whether any amounts relating to the overpayment you are investigating have been recovered on or after the IVA date.

Note: You mustn’t assume that because we have recovered amounts after the IVA date, those recoveries should automatically be included in the IVA calculation. Until you have checked earlier awards to see how much was recovered before the IVA date, you don’t know whether the amounts recovered after the IVA date relate to the overpayment you are investigating or another overpayment that arose after the IVA date.

Note: Repeat the above steps for each award period prior to the IVA date you are including in the calculation.

Step 4

If any of the award periods you are including in the IVA have been re-finalised after the IVA date, go to .

If none of the award periods you are including in the IVA have been re-finalised after the IVA date

  • on the ‘View Award Period Summary’ screen
  • select ‘Cancel’. You will be taken back to the ‘Select Award’ screen
  • select the earliest award period you are including in the IVA
  • select ‘OK’. You will be taken to the ‘View Award Period Summary’ screen
  • on the IVA Worksheet

    • enter any amount shown in the ‘Overpayment Outstanding’ field
    • make a note of any amounts shown in the ‘Payments In’ field
  • select ‘Postings’. You will be taken to the ‘Postings’ screen
  • check the ‘Posting Date’ field to see when the payments in were made
  • on the IVA Worksheet, enter the payments in that were made on or after the IVA date.

Note: Repeat the above steps for each award period prior to the IVA date you are including in the calculation.

Step 5

If any of the award periods you are including in the IVA have been re-finalised after the IVA date, go to .

If none of the award periods you are including in the IVA have been re-finalised after the IVA date

  • on the ‘Function Menu’
  • select ‘Household’ on the toolbar
  • select ‘View Account’ from the options available. You will be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select the ‘All’ checkbox
  • select the ‘Summary’ checkbox
  • select ‘OK’. You will be taken to the ‘Select Award’ screen
  • select the earliest award period you are including in the IVA
  • select ‘OK’. You will be taken to the ‘View Award Period Summary’ screen
  • on the IVA Worksheet, enter any amount shown in the ‘Overpayment Outstanding’ field.

Note: Repeat the above for each award period prior to the IVA date you are including in the calculation.

Step 6

On the ‘View Award Period Summary’ screen, if you are on that screen

  • select ‘Cancel’ on each screen until you are taken back to the ‘Function Menu’

Note: If you aren’t already on the ‘View Award Period Summary’ screen, go to the ‘Function Menu’.

  • select ‘Household’ on the toolbar
  • select ‘View Overpayment’ from the options available. You will be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select the ‘All’ checkbox
  • select ‘OK’. You will be taken to the ‘Select Award’ screen
  • select the re-finalised award period you are considering
  • select ‘OK’. You will be taken to the ‘View Overpayment’ screen
  • check the dates in the ‘Date Created’ column.

If you’re taken to the ‘View Overpayment’ screen, go to .

If you receive the message ‘No overpayment details found’, there isn’t an overpayment to be included in the IVA for that particular award period. 

Note: Repeat the above steps for each award period that has been re-finalised after the IVA date. If there are award periods that haven’t been re-finalised after the IVA date, go back to the beginning of this ‘How to’ guidance to consider other overpayments to be included in the IVA.

Step 7

Check the dates in the ‘Date Created’ column.

If the only dates shown in the ‘Date Created’ column are after the IVA date, there isn’t an overpayment to be included in the IVA for that particular award period.

If there is a date shown in the ‘Date Created’ column on or before the IVA date,

  • On the IVA worksheet enter the amount of the outstanding overpayment.

Note: Repeat the above steps for each award period that has been re-finalised after the IVA date. If there are award periods that haven’t been re-finalised after the IVA date, go back to the beginning of this ‘How to’ guidance to consider other overpayments to be included in the IVA.