HB overpayment - Tax Credit awards

I think I may be clutching at straws but do HB decision makers have any duty to query clearly wrong Tax Credit awards shown on HB claims.

My client was awarded HB on the basis of a certain self employed income and this was correct. Unfortunately the Tax credit award was less than half of the correct amount and was later corrected, giving rise to an overpayment.

Leaving aside the very difficult question of whether they were notified of the change (usual debate, client says he told them they say he didn’t) is there any duty placed on HB decision makers , when they have all the facts necessary to calculate a Tax Credit Award, to satisfy themselves that the Tax credit award is at least approximately correct when calculating the amount of HB to be paid?

“is there any duty placed on HB decision makers , when they have all the facts necessary to calculate a Tax Credit Award, to satisfy themselves that the Tax credit award is at least approximately correct when calculating the amount of HB to be paid? “

HB decision makes do not calculate Tax Credit Awards, and cannot possibly know if an award is correct. Quite aside from anything else, it depends if everyone has the same information, which appears to be under question in your case. The calculation of Tax Credits is a secret known only to HMRC. Ever seen a TC award notice? Even that doesn’t tell you how it works.

Thanks for your prompt reply, it is much as thought.

The only query I would have is how a HB decision maker would work out the nominal income from Tax Credits if the claimant failed to apply for them?

I take the point about the award notices though, they are, to say the least,pretty confusing.

Before anyone else spots it - i’ve just read Reg 42 paras a-h and realised that Tax Credits don’t fall under the notional income rules, sorry!