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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to adjust in year payments

Step 1

To apply the appropriate percentage

On the ‘Function Menu’

  • select ‘Household’ on the toolbar
  • select ‘Adjust in year payments’ from the options available. You will be taken to the ‘Key Entry Data - Applicant’ screen
  • enter the customer’s NINO
  • select ‘OK’. You will be taken to the ‘Adjust in year payments’ screen.

If you want to increase the rate of recovery, go to Step 3. {#}

If the award is category A

  • enter ‘90’ in the ‘% of remaining entitlement authorised for payment’ field
  • select ‘Display results’ and make a note of the approximate payment amounts shown
  • go to Step 2. {#}

If the award is category B

  • enter ‘75’ in the ‘% of remaining entitlement authorised for payment’ field
  • select ‘Display results’ and make a note of the approximate payment amounts shown
  • go to Step 2.

If the award is category C

  • enter ‘50’ in the ‘% of remaining entitlement authorised for payment’ field
  • select ‘display results’ and make a note of the approximate payments amounts shown
  • go to Step 2.

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Step 2

Compare the approximate payment amounts to the amount shown in the ‘Schedule’.

If the new payments shown in the ‘Schedule’ are less than the recent payments

  • don’t apply the new payment adjustment
  • select ‘Cancel’
  • return to the guidance you were following.

If the new payments shown in the ‘Schedule’ are more than the recent payments

  • select ‘OK’
    Note: The following message will appear ‘As a result of this processing any overpayment recovery will take longer. Do you wish to proceed?’.
  • select ‘Yes’
  • return to the guidance you were following.

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Step 3

If the customer no longer wants a payment adjustment applied

  • select ‘Full Recovery’
  • select ‘OK’
  • return to the guidance you were following.

If the customer wants to increase their rate of recovery

  • enter the appropriate percentage in the ‘% of remaining entitlement authorised for payment’ field
    Note: You might have obtained this figure from the TC996.
    For example: To increase recovery from 10% to 25%, enter 75%. To increase recovery from 25% to 55%, enter 45%.
  • select ‘Claimant request higher recovery’
  • select ‘OK’
  • return to the guidance you were following.