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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

Notional offsetting in a full UC area?

Jon (CANY)
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Welfare benefits - Craven CAB, North Yorkshire

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Total Posts: 1362

Joined: 16 June 2010

Lone parent fails to inform HMRC of new partner (who has nil income), incurs tax credit overpayment.

We would normally look at starting a couple claim, and then ask for notional offsetting for the overpayment period. HMRC guidance says they need the couple claim in place in order to calculate the underlying entitlement:
https://www.gov.uk/hmrc-internal-manuals/claimant-compliance-manual/ccm15720

However, we are now a full UC area, no new tax credit claims should be allowed*. Is there still a way to get notional offsetting?


[*] barring tax credit claims after April 2017 for 2+ children, which is not an immediate fix for this issue.

Mark Willis
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Welfare rights worker - CPAG in Scotland

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Hi Jon

It’s an exercise of the discretion not to recover, based on the principle that recovery should reflect the actual loss to the public purse, so there’s no legal reason why not. The insistence on making a new claim is following guidance too rigidly, and unreasonable in the circumstances. They may need the details , I.e. partner’s income, in order to make a calculation but there is no reason why it cannot be done without a new claim. It may be necessary to pursue a complaint / involve MP but it’s an important point as it will become more common.

Mark

Jon (CANY)
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Welfare benefits - Craven CAB, North Yorkshire

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Total Posts: 1362

Joined: 16 June 2010

Thanks for this Mark. Unfortunately it turns out this case has other problems, which mean I might not be able to report on how notional offsetting works in these circs.