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HMRC internal manual

Tax Credits Manual

Backdating: backdating (all): amend effective date - backdating

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • you follow the guidance in TCM0022100
  • you have the correct user roles to follow this guidance.

Reasons not to follow this guidance

Do not follow this guidance for cases where

  • you have not been directed here from other guidance
  • you are backdating to a date PY-1 or earlier, follow the guidance in TCM0022320.

Background

Where a customer requests that their claim to tax credits is paid from an earlier date, you must determine if they have grounds for backdating and if you determine that the claim can be backdated you must amend the effective date, where appropriate. There are some cases that need to be paid manually, such as backdating refugees, where the whole award is being paid manually.

Note: From 6 April 2017, customers will only get the Family Element of Child Tax Credit where they are responsible for a child or children born before that date.

Note: The individual child element of Child Tax Credit will no longer be awarded for third and subsequent children or qualifying young persons in a household, born on or after 6 April 2017, unless it meets the exception criteria.

Note: If the change relates to a child/young person who is an exception or potential exception contact the Exception Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Guidance

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian / Data Security Team for advice.

Step 1

If dealing with an initial action to amend an effective date

  • access AMBS Amend Eff date through My Services
  • select ‘Application’ on the toolbar
  • select ‘Amend Effective Date’ from the options available. You will be taken to the ‘Key Entry Data’ screen
  • select the ‘All’ checkbox
  • enter the customer’s NINO
  • select ‘OK’
  • go to Step 2.

If dealing with a returned TFC information stencil from Childcare Services Office, go to Step 16.

If dealing with an expired BF to check claim has backdated to the new effective date, go to Step 17.

Step 2

If taken to the ‘Select Individual’ screen

  • select the relevant claim
  • select ‘OK’. You’ll be taken to the ‘Amend Effective Date’ screen
  • go to Step 3.

If taken to the ‘Select Award’ screen

  • select the relevant award
  • select ‘OK’. You will be taken to the ‘Amend Effective Date’ screen
  • go to Step 3.

If taken straight to the ‘Amend Effective Date’ screen, go to Step 3.

Step 3

If the warning message, ‘Warnings exist for this application. Are you sure you wish to continue?’ displays

  • select ‘Yes’
  • go to Step 4.

If no warning message displays, go to Step 4.

Step 4

Check the ‘Warnings’ field. Follow the guidance in TCM0322060.

If no checkboxes selected or after considering the guidance you are satisfied that the effective date can be amended, go to Step 5.

If after considering the guidance you are not satisfied that the effective date can be amended

  • select ‘Cancel’
  • pass to Tallo for advice.

Step 5

Check to see whether an Override reason is displayed.

If the override reason is Tax Free Childcare

  • send TFC account information template from SEES to the Childcare Services office
  • set a BF date for 7 days to await reply.

If the override reason is Civil Partnership

  • select ‘cancel’
  • select ‘application’
  • select ‘Correction’
  • change the start date and include from dates for all elements on the claim to the new effective date
  • set a BF date for 3 days to check the claim has backdated to the new effective date.

If the override reason has any other reason or none displayed

  • enter the new effective date in the ‘New Effective Date’ field
  • select ‘Continue’
    Note: If you are amending an effective date that will amend the child responsibility date and one or more children are an exception you will need to refer the case to the Exception Team. Please ensure the child/children are exceptions before you transfer the case to the Exception Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .
  • go to Step 6.

Step 6

If the warning message ‘New effective date is earlier than the ‘Normally lives in UK’ start date for either claimant’ only displays

  • select ‘Continue’. You will be taken to the ‘Applicant 1 Entitlement Details’ screen
  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields, if applicable. Follow the guidance in TCM0322080
  • go to Step 8.

If any other messages displays, go to Step 7.

Step 7

Considering the evidence you have gathered and whether the backdating rules allow you to continue with your action.

If the new effective date is correct

  • select ‘Continue’. You will be taken to the ‘Applicant 1 Entitlement Details’ screen
    Note: Once you have selected ‘Continue’ you will not be able to change the new effective date. If you determine at any stage that the new effective date is incorrect, you will have to select the ‘Cancel’ or ‘Menu’ button to restart your action.
  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields, if applicable. Follow the guidance in TCM0322080
  • go to Step 8.

If the new effective date is not correct or you need to change the effective date

  • select ‘Cancel’. You will be taken back to the ‘Amend Effective Date’ screen
  • go back to Step 5.

Step 8

If the ‘OK’ button is greyed out

  • select ‘Continue’
  • go to Step 9.

If the ‘OK’ button is not greyed out

  • select ‘Eligibility’
  • go to Step 11.

Step 9

If taken to the ‘Applicant 2 Entitlement Details’ screen

  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields, if applicable. Follow the guidance in TCM0322080 
  • go to Step 10.
    Note: If no data exists for an entitlement element the date fields for that entitlement will be disabled.

If taken to the ‘List Children’ screen

  • select the first child listed to highlight it
  • select ‘Entitlement’. You will be taken to the ‘Child Entitlement Details’ screen for that child
  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields for that child. Follow the guidance in TCM0322140
  • select the ‘Next Child’ button and amend any relevant dates in the ‘Start’ and ‘Include From’ fields for any subsequent children. Follow the guidance in TCM0322140
    Note: Continue this action until the ‘Next Child’ button is greyed out
  • select ‘OK’. You will be taken back to the ‘List Children’ screen
  • select ‘Eligibility’
  • go to Step 11.

Step 10

If the ‘OK’ button is greyed out

  • select ‘Continue’
  • select the first child listed to highlight it on the ‘List Children’ screen
  • select ‘Entitlement’. You will be taken to the ‘Child Entitlement Details’ screen for that child
  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields for that child. Follow the guidance in TCM0322140
  • select the ‘Next Child’ button and amend any relevant dates in the ‘Start’ and ‘Include From’ fields for any subsequent children. Follow the guidance in TCM0322140
    Note: Continue this action until the ‘Next Child’ button is greyed out
  • select ‘OK’. You will be taken back to the ‘List Children’ screen
  • select ‘Eligibility’
  • go to Step 11.

If the ‘OK’ button is not greyed out

  • select ‘Eligibility’
  • go to Step 11.

Step 11

If the message ‘Application is eligible at the new effective date’ displays

  • select ‘OK’
  • select ‘OK’ again on the entitlement details or list children screen as appropriate
  • select ‘OK’ on the ‘Amend Effective date – Finish’ message display
  • go to Step 13.

If the message ‘Household does not qualify for WTC or CTC at the new effective date’ displays, go to Step 12.

Step 12

Check the dates you have entered in the ‘Start’ and ‘Include From’ fields.

If you have entered incorrect dates

  • amend the dates
  • select ‘Eligibility’
  • go back to Step 11.

If you have not entered incorrect dates

Tax credits are not due at the new effective date you have entered

  • select ‘OK’
  • select ‘cancel’
  • return to guidance TCM0022100 to confirm the backdating criteria.

Step 13

If the message ‘Application is eligible at the new effective date’ displays, go to Step 15.

If the message ‘S18 Refinalisation Rules - a change to CCYY-CCYY may cause an inappropriate refinalisation’ or ‘S18 Refinalisation Rules - Actual income for CCYY-CCYY is required. This change will not be accepted’ displays, go to Step 14.

Step 14

You may not be able to make the change as this will re-finalise the claim or PY actual income is required. Follow the guidance in TCM0042280 before making any changes.

If you are able to make the change, go to Step 15.

If you are not able to make the change, pass to TALLO for advice.

Step 15

If the customer has requested backdating of 31 days or less

  • select ‘OK’
  • update Household notes with the appropriate message BZ14 from TCM0156040. For how to do this, use TCM1000001
  • take no further action.

If the customer has requested backdating of 31 days or more and this has been applied

  • select ‘OK’
  • update Household notes with the appropriate message BZ14 from TCM0156040. For how to do this, use TCM1000001
  • take no further action.

If the customer has requested backdating of 31 days or more and this has been refused

  • select ‘OK’
  • update Household notes with the appropriate message BZ34 from TCM0156040. For how to do this, use TCM1000001
  • send TC845 to the customer
    Note: Only issue if you have not already been directed to issue a letter
  • take no further action.                                                                                                                                                                      

Step 16

Check TFC account status on the returned template.

If the TFC account status is open

  • update Household Notes with the appropriate message BZ43 from TCM0156040. For how to do this, use TCM1000001
  • issue TC845 to the customer
  • take no further action.

If TFC account status is open with no activity or pay only normal backdating rules apply

  • select ‘Application’
  • select ‘Correction’
  • change the start date and include from dates for all elements on the claim to the new effective date
  • set a BF date for 3 days to check the claim has backdated to the new effective date.

If TFC account status is closed

Tax credits can only be paid the day following the date the TFC account was closed as provided by Childcare Services office. You must apply normal backdating rules.

  • select ‘Application’
  • select ‘Correction’
  • change the start date and include from dates for all elements on the claim to the new effective date
  • set a BF date for 3 days to check the claim has backdated to the new effective date.

Step 17

Check NTC to confirm the claim has been backdated to the new effective date. For how to this, use TCM1000047.

If the claim has been backdated to the new effective date

  • update Household Notes with the appropriate message BZ14 from TCM0156040. For how to do this, use TCM1000001
  • take no further action.

If the claim has not been backdated to the new effective date

  • complete CR1380 and pass to TAL
  • set a BF date for 14 days to await TAL action.