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Friends,
The whole business of claimants being able to keep up with their responsibilities in the eyes of HMRC continues to be a troublesome area as far as TC overpayments are concerned, especially in view of the current format of COP 26. Is the behaviour of the claimant to be judged against their subjective ability? What about people with mental health problems?
HMRC’s Debt Management and Banking Manual (DMBM) now seems to offer some hope - apologies to those who already have this on their coffee table. Here are some reasons to be cheerful, from the section on tax credits:
DMBM555610
“If you receive information/evidence about the mental health problem of a claimant you can agree not to pursue that claimant for payment. This is to prevent any detrimental effect or unreasonable distress to the claimant”
DMBM555620
“The evidence should include the nature of the illness and as far as possible, whether the illness is likely to be long-term (for example schizophrenia) or where the prospects for recovery are expected to be good (such as depression)
If the initial approach is a letter from the third party explaining the mental health problem, or includes such a letter from the claimant or third party, treat this as evidence obtained”
DMBM555630
“Only in exceptional circumstances will the evidence received be insufficient to relieve the claimant from responsibility for payment”
Here is the home page of the bit on mental health…
http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM555600.htm
I anticipate that HMRC may say that this manual only has primary relevance to those subject to direct recovery of tax credits overpayments, but I say it should have general applicability. I reckon the Adjudicator might also end up agreeing, if it came to it.
Steve
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