CCM11310 - End of Year: Vary Run on Payments
S24 (4) Tax Credits Act (TCA) provides for payments to be made in a new tax year even though we have not received a claimant’s S17 renewal notice.
Where a claimant is receiving tax credits for a new tax year, the NTC system will usually set these payments based on the rate of the previous year award until either the S17 notice is returned and processed or until the first specified date of 31 July has passed.
Where the claimant supplied estimated income details during the previous year the provisional payments will be set according to that estimate.
Where we are in a position to make our decision, but have not received information for the S17 declaration and we know that the award is incorrect and the provisional payments are being paid at a high rate. We can vary the run on payments to reflect the decision that we have the evidence to support.
You will enter the changes, depending upon your decision, but changes must only be entered in the Current Year. This is because we are varying run on payments - not making our decision, then no amendments should impact on an earlier year then the new CY.
For example, if you have opened an 11/12 enquiry and you have reached 5 April 2012 and are ready to make your decision on 01/05/12. You have the evidence to support a UP decision from 06/04/11, but have not received the 10/11 S17 Declaration. You can only vary the run on payments from 06/04/12. You can not enter any amendments earlier then this date until you are in a position to make a full S18 decision.