TCM0070100 | Claims - rejecting: rejection due to a verification failure

From HM Revenue & Customs · Tax Credits Manual

Information

Tax credits claims that have been sent for processing appear on the Verification Failures work list if a verification failure is found.

A claim should be rejected if, after you have investigated a verification failure, you

establish that the customer isn’t eligible
or
haven’t received a reply to your enquiries within 28 calendar days.

You must use Function REJECT APPLICATION to reject a claim because of a verification failure. In this function, you must select the reasons for the rejection from the options available.

Note: There may be more than one reason why the claim is to be rejected. You must select all the relevant reasons.

Note: If the claim is to be rejected because you haven’t had a response to your enquiries to resolve the verification failure, the reason for the rejection is the verification failure and not the fact that the claim is incomplete. An explanation message can be added to the Rejection Notice to let the customer know the decision is based on the fact that we haven’t had a response to our enquiries.

Note: The Enter Reason for Rejection to be shown on notice field in the Reject Application box, in Function REJECT APPLICATION is for use by Compliance and International teams only. Any entries made in this field are copied onto the Rejection Notice.

To reject a claim because of a verification failure, consider steps 1 to 4.

Step 1

If you are not already using Function MAINTAIN WORKLIST

use Function MAINTAIN WORKLIST
go to Step 2.

Step 2

In Function MAINTAIN WORKLIST

select the Verification Failures work list from the Worklist Type field. The claims appearing on the selected Work List will be displayed
select the claim you want to reject
select ‘File’ on the toolbar menu
select ‘Next Function’ from the options available. You will be taken to the Select Next Function screen
select Function MANAGE VERIFICATION FAILURES. You will be taken to the Manage Verification Failures screen
go to Step 3.

Step 3

On the Manage Verification Failures screen

select ‘Navigate’ on the toolbar menu
select ‘Reject Application’ from the options available. You will be taken to Function REJECT APPLICATION
select the reasons why the claim is being rejected
select ‘Add’
select ‘OK’

If the reason you are rejecting the claim is ‘Residency’ because the customer has not responded to enquiries

select ‘Text’. The ‘CBS Reject Application’ text box will be shown
copy and paste the explanation in the text box. The agreed text to use is
As you have not responded to our letter asking for more information about your claim, we have made a decision based on the information we already have.
Note: You must not amend the agreed text or adapt it.
select ‘OK’
select ‘OK’
go to Step 4.

If the reason you are rejecting the claim is because the customer is not a Qualified Person

select ‘Text’. The ‘CBS Reject Application’ text box will be shown
copy and paste the explanation in the text box. The agreed text to use is
As an EU national you depend on European Union law to have a right to reside in the UK. To have an ongoing right to reside in the UK you must remain a ‘qualified person’. You are not a qualified person, therefore not entitled to tax credits.
Note: You must not amend the agreed text or adapt it.
select ‘OK’
select ‘OK’
go to Step 4.

If the reason you are rejecting the claim is because of 3 month residency

select ‘Text’. The ‘CBS Reject Application’ text box will be shown
copy and paste the explanation in the text box. The agreed text to use is
You have not been resident in the UK for three months from your date of arrival, therefore you are not entitled to access Child Tax Credits.
Note: You must not amend the agreed text or adapt it.
select ‘OK’
select ‘OK’
go to Step 4.

If the reason you are rejecting the claim because the customer claimed as a joint claim when one customer lived in the rest of the world at the start of the claim

select ‘Text’. The ‘CBS Reject Application’ text box will be shown
copy and paste the explanation in the text box. The agreed text to use is
You have claimed in the incorrect capacity. You need to make a single claim.
Note: You must not amend the agreed text or adapt it.
select ‘OK’
select ‘OK’
go to Step 4.

If you are rejecting the claim for any other reasons go to Step 4.

Step 4

You will be presented with the question ‘Are you sure you want to reject this application?’

select ‘Yes’. The claim will be rejected and a Rejection Notice issued
take no further action.