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TCM0234080 | Payment: potential entitlement: potential entitlement - release (AG)

From HM Revenue & Customs · Tax Credits Manual

Background

You may receive a request from a customer to release the potential entitlement prior to their award being finalised. You can’t do this unless you have the High Level User (HLU) role.

The amount will only be released if the customer tells us they are experiencing hardship.

Guidance

To deal with a request to release a potential entitlement, consider steps 1 to 12.

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.

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.

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 haven’t traced the customer

      • place the correspondence in confidential waste

      • take no further action.

Step 4

If you receive the error message ‘No award details found’, there isn’t an award for the customer

  • tell the customer that an award doesn’t exist for them and therefore no potential entitlement exists

  • place the correspondence in confidential waste

  • take no further action.

Step 5

Check the reason for the request to release the potential entitlement.

If it’s because the customer has told us they’re experiencing hardship, go to Step 6.

If it’s because the customer hasn’t told us any other reason, go to Step 7.

Step 6

If you determine that the customer is experiencing hardship, go to Step 8.

If you determine that the customer isn’t experiencing hardship, go to Step 7.

Step 7

If there is a Manual Correspondence marker on the claim, contact the Manual Correspondence Team for advice.
If any other circumstances apply

  • complete a free format LFC with the following details

    • customer’s name

    • customer’s address

    • customer’s NINO

    • date

    • a full explanation of your reasons for not upholding the customer’s explanation of hardship

    • send the completed LFC to the customer
      then

    • go to Step 11.

Step 8

Use Function MAINTAIN POTENTIAL ENTITLEMENT

  • enter the customer’s NINO in the Key Entry Data screen

  • select the Latest checkbox

  • select [OK]
    then

  • go to Step 9.

Step 9

If you have the High Level User (HLU) role to enable you to release the potential entitlement go to Step 10
If you do not have the High Level User (HLU) role,

  • pass the case to the officer on your team with that role

  • take no further action.

Step 10

To release the potential entitlement

  • in Function MAINTAIN POTENTIAL ENTITLEMENT

  • go to the Maintain Potential Entitlement screen

  • select [Release PE]. The message ‘Do you wish to release the Potential Entitlement?’ will appear

  • select [Yes] in the message box
    then

  • go to Step 11.

Step 11

Update Household notes with either PM37 or PM38 from TCM0168020. For how to do this, use TCM1000001

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160

Step 12

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