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Background

You may be in a situation where the request for a payment adjustment was made more than five working days before its being actioned.

Where this is the case, you’ll need to

• calculate the number of days from the sixth working day to yesterday
• calculate the value of the adjustment for that period
• issue a manual payment for that amount.

You must complete the third part of the TCO - adjust in year payments pro-forma (Word 46KB) while working through these instructions.

Guidance

To deal with a payment adjustment that requires backdating, consider steps 1 to 8.

Step 1

Enter the date that the initial request was made at part 3, step 18 on the ‘TCO - adjust in year payments� pro-forma

• go to Step 2.

Step 2

Calculate the number of days from the initial request date to the date of receipt of the hardship claim.

Note: Don’t count the first five working days. »Ê¹ÚÌåÓýapp first calendar day after the fifth working day is day one, and count all subsequent days (including weekends) up to and including yesterday.

Note: Count the date of receipt of the hardship claim as the first day of the five working days - for example, if the letter was received on 21/06/05, then day one would be 28/06/05.

• enter the number of days at part 3, step 18 on the form
• go to Step 3.

Step 3

Use Function ADJUST IN YEAR PAYMENTS to view the approximate adjusted payment amount

Note: Function ADJUST IN YEAR PAYMENTS can only be accessed by using the AMBS Overpayment Recovery Maintainer user role.

• enter the appropriate percentage, as determined by the category of the award, in the â€�% of Remaining Entitlement Authorised for Paymentâ€� field. Confirmation of this can be found at part 1, steps 10 or 11 on the form
• select [Display Results]
• enter the approximate payment amounts and frequency at part 3, step 20 on the form.
  Note: »Ê¹ÚÌåÓýapp frequency displayed will be the customer’s payment frequency. You must ensure this is the frequency you use in subsequent calculations.
• go to Step 4.

Step 4

Use Function VIEW AWARD to check the amount and frequency of the customer’s regular payments at the time the initial request was received

• go to the Select Award screen and select the latest award version
• select [OK]. You’ll be taken to the Award Summary screen
• select [Payment Details]. You’ll be taken to the Payment Details screen
• from the details for today’s date, enter the amount and frequency of the payment made for CTC and WTC that’s shown as ‘Regularâ€� in the Payment Type column at part 3, step 21 on the form. You’ll need to check each tax credit type separately
  Note: Where the regular WTC amount was paid by PVE, take the regular daily amount and multiply by seven to reach a weekly amount. Remember to add together any PVE and Bank payment methods to make a total WTC regular payment.
• subtract this amount from that recorded at part 3, step 20 on the form
• enter the difference between these amounts at part 3, step 22 on the form.
• go to Step 5.

Step 5

If the pay frequency was

• weekly
  • divide the amount noted at step 22 on the form by seven
  • enter the daily rate at part 3, step 23 on the form.
• four-weekly
  • divide the amount noted at step 22 on the form by 28
  • enter the daily rate at part 3, step 23 on the form.
• go to Step 6.

Step 6

Multiply the daily rate by the number of days recorded at part 3, step 19 on the form

• enter this amount at part 3, step 24 on the form
  Note: Round the resulting figure up to the nearest penny.
• go to Step 7.

Step 7

Complete the manual payment referral form from SEES for the amount you have calculated at part 3, step 24 on the form, go to Step 8.

Note: If the amount of the manual payment is under £1, don’t issue the payment. Instead, return to the guidance that instructed you to backdate.

Step 8

Prepare and issue letter TC886 (Word 124KB) to the customer

• use Function MAINTAIN HOUSEHOLD NOTES to record the following message
  ‘TCMZ Clerical backdated MAPTH payment and letter TC886 has been issued to (please insert the name of the customer) for £XXXXX R92TC No XXXXXXXX�
  Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
  then
• return to the guidance that you were previously following.