Coding periodic compensation payments and raising debts 117-03010020

Business rules for compensation charges

Table 1

Item	Description
1	CMM - Compensation charge to compensation payer The debt is raised: under section 1184G when the compensation payer is under preliminary notice for both the customer and their partner due to ongoing and arrears of periodic payments, or for the customer due to getting a lump sum settlement
2	CMB - Compensation charge to compensation payer This debt is raised: to the compensation payer under section 1184H when the compensation payer is under preliminary notice but they did not: notify of a settlement and/or periodic payment, or comply with a recovery notice Raise any overpayment incurred by the partner under section 1223(1).
3	CMC - Compensation charge to customer This debt is raised to the customer under section 1184F when: ongoing and/or arrears of periodic payments are paid, or lump sum settlement received, and no preliminary notice was issued to the compensation payer, or the customer failed to notify of compensation payments A debt raised under section 1184F requires a Q417 manual debt advice to be issued to the customer. This letter will print locally. See: Sending Account Payable letters example of plain English text which can be used on a manual debt advice: ‘This is because you have been paid arrears of periodic compensation for the period (date) to (date)’ Raise any overpayment incurred by the partner under section 1223(1).
4	CMA - Compensation charge to customer (income) This debt is raised to the customer under section 1184I when: compensation payer is not under preliminary notice, and periodic compensation is assessed as ordinary income and due to the customer getting arrears of periodic compensation for a fixed period. That is, the specific dates of the periodic payments are known Raise any overpayment incurred by the partner under section 1223(1).

Issue Advice field – Compensation Payer Details

Table 2: this table shows when an update is required to the Preliminary Notice ‘Issue Advice’ field.

Who is liable for the charge	If ‘Issue Advice’ displays	Fields to be changed
Compensation payer	‘Advice issued automatically’ or ‘Advice issued manually’	No change required
Compensation payer	‘Advice not issued’	Change to ‘manual’
Customer	‘Advice not issued’	No change required

Issue Advice field – Add New Arrears

Table 3: this table shows outcomes for the Issue Advice: field for Compensation Recovery Notices.

Issue advice field	If ‘Issue Advice’ displays
Advice issued automatically	CMS automatically sends a Batch Laser Advice (BLA) letter to the compensation payer, the customer and customer’s solicitor
Advice issued manually	Manual Online Advice (OLA) letter/s to be sent. See Compensation Online Advice (OLA) letters
Advice not issued	No letter sent

Recipient Assessment Benefit/Pension Rate: field

Valid Codes:

BENEFIT: In receipt of a benefit/allowance
PENSION: In receipt of a pension

If the compensation recipient is partnered, select:

the compensation recipient’s current payment stream, or
the partner’s current payment stream if the compensation recipient is not receiving a Compensation Affected Payment (CAP)

Recipient Assessment CAP Qualified: field

When a compensation recipient is partnered, this field records if the compensation recipient is qualified for a Compensation Affected Payment (CAP).

Note: a beneficial assessment is when the compensation is treated as ordinary income for the compensation recipient for calculation of their partner's rate. This happens when a determination cannot be made regarding the compensation recipient’s qualification for a CAP.

These tables show how to update the Recipient Assessment CAP Qualified: field when the compensation recipient has a partner.

Incident after CAP grant – Yes

Compensation recipient	CAP Qualified field	BEN/Pen field	Periodic Compensation assessed for Customer	Periodic Compensation assessed for Partner
Current on CAP	Yes	Customer’s payment stream	Income	Income
Cancelled and reclaiming CAP	Yes	Customer’s payment stream	Income	Income
Cancelled and NOT reclaiming CAP	Yes	Beneficial assessment – Partner’s current payment stream	Income	Income
Never claimed CAP	See ‘Incident after CAP grant – NO’ Table

Incident after CAP grant- No

Compensation recipient	CAP Qualified field	BEN/Pen field	Periodic Compensation assessed for Customer	Periodic Compensation assessed for Partner
Current on CAP	Yes	Customer’s payment stream	Direct deduction	Excess Compensation assessed as income
Claiming CAP	Yes	Customer’s payment stream	Direct deduction	Excess Compensation assessed as income
Past claim for CAP: After Incident Date and payments cancelled	Yes	Beneficial assessment – Partner’s current payment stream	Direct deduction	Excess Compensation assessed as income
Past claim for CAP: After Incident Date and CAP claim rejected due to Compensation	Yes	Customer’s payment stream	Direct deduction	Excess Compensation assessed as income
Never claimed CAP	No	Beneficial assessment – Partner’s current payment stream	Income	Income
Past claim for CAP: Before incident date	No	Beneficial assessment – Partner’s current payment stream	Income	Income
Past claim for CAP: After incident Date and CAP claim rejected for reasons other than Compensation	No	Beneficial assessment – Partner’s current payment stream	Income	Income

Moving limiting dates

For APS5 staff with access to move limiting dates:

Limiting dates can be moved on the Limiting Date (LMTD) screen if the existing reason is BLK in the relevant system
Moving the limiting date to an earlier date will let the reassessment occur before the BLK limiting date
If moving a BLK limiting date, it needs to be moved to the date after the previous limiting date recorded
The limiting date cannot be moved for any other reason, for example, DOC, LNK, ULK, NCL or BTR

How to move the limiting date:

Identify the BLK Limiting date for the correct system. The system displays on the LMTD screen. There will be different dates in each system
for example 01 MAR 2015 BLK PEN
Identify the earlier limiting date displayed below the BLK limiting date
for example, 27 MAR 2009 NCL
In the Event Date field, enter the date one day after the earlier limiting date
for example, 28 MAR 2009 = 27 MAR 2009 + 1 Day
Enter details in Notes:
'LIMITING DATE MOVED BACK AS FAR AS IT WILL GO TO ALLOW REASSESSMENT PRIOR TO BLK LIMITING DATE’
Enter Source: INT and DOR: the date source document was received
Press [Enter], this should show:

the original BLK limiting date as deleted, for example,1 March 2015 AMR is deleted
the date entered as the only other limiting date, for example, 28 MAR 2009

Forms

Compensation advice of periodic payments (SS445)

Compensation and damages (MOD C)

Video demonstrations

Updating periodic compensation payments

Ceasing periodic compensation payments

Operational Information