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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
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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 TCM0022000
  • you have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles & Access Catalogue’ from the Related links Menu
  • you are in the correct MU. Use TCM0322460 for the correct MU.

Reasons not to follow this guidance

You do not need to follow this guidance if

  • you have not been directed here from other guidance

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 and where you are backdating to a date earlier than PY.

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

  • 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’

If you are taken to the ‘Select Individual’ screen

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

If you are taken to the ‘Select Award’ screen

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

If you are taken straight to the ‘Amend Effective Date’ screen, go to .

Step 2

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

  • select ‘OK’
  • go to .

If you do not get a warning message, go to .

Step 3

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

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

If there are any changes that need to be applied after the new effective date, go to .

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

Step 4

On the ‘Amend Effective Date’ screen, in the ‘Amend Effective Date’ field

  • enter the new effective date
  • select ‘Continue’

If you are taken to the Applicant 1 Entitlement Details screen, go to .

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

  • select ‘Yes’. You will be taken to the ‘Applicant 1 Entitlement Details’ screen
  • go to .

If you receive any other messages, go to .

Step 5

One of the following warning messages will have displayed.

‘New effective date crosses a Tax Credit Period boundary from CY to PY’

‘New effective date is later than the application received date’

‘New effective date is earlier than 31 days before the application received date’

Note: If the claim for tax credits was received before 06-04-2012 the warning message will display as ‘New effective date is earlier than 93 days before the application received date’.

‘The period between the new and existing effective dates contains an End Date for one or more entitlement period’

  • consider if the backdating rules allow you to continue with your action. Follow the guidance in TCM0022100.

If you are satisfied that 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 the new effective date is incorrect, you will have to select the ‘Cancel’ or ‘Menu’ button to restart your action.

  • go to .

If you have reviewed the guidance and need to change the effective date

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

Step 6

On the ‘Applicant 1 Entitlement Details’ screen

  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields. Follow the guidance in TCM0322080, then

If the ‘OK’ button is greyed out

  • select ‘Continue’
  • go to .

If the ‘OK’ button is not greyed out

  • select ‘Eligibility’
  • go to .

Note: If no data exists for an entitlement element the date fields for that entitlement will be disabled.

Step 7

If you are taken to the ‘Applicant 2 Entitlement Details’ screen

  • amend any relevant dates in the ‘Start’ and ‘Include From’ fields. Follow the guidance in TCM0322080 
  • go to .

Note: If no data exists for an entitlement element the date fields for that entitlement will be disabled.

If you are taken to the ‘List Children’ screen, go to .

Step 8

If the ‘OK’ button is greyed out

  • select ‘Continue’
  • go to .

If the ‘OK’ button isn’t greyed out

  • select ‘Eligibility’
  • go to .

Step 9

On 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 10

If you receive the message ‘Application is eligible at the new effective date’, go to .

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

Step 11

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 to .

If you have not entered incorrect dates, go to .

Step 12

If you receive the message ‘Application is eligible at the new effective date’, go to .

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

Step 13

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

  • select ‘OK’
  • select ‘Cancel’

return to guidance TCM0022100.

Step 14

On the List Children screen

  • select ‘OK’
  • the ‘Amend Effective Date - Finish’ message displays
  • select ‘OK’

If the message ‘S18 Refinalisation Rules - a change to CCYY-CCYY may cause an inappropriate refinalisation’ displays

  • the changes you are making will re-finalise the claim. Follow the guidance in TCM0042280 before making any changes
  • then, if you can make the change
  • select ‘OK’
  • return to guidance TCM0022100.

If the message ‘S18 Refinalisation Rules - Actual income for CCYY-CCYY is required. This change will not be accepted’ displays

  • you will not be able to make the change because the PY actual income is required. Follow the guidance in TCM0042280 before making any changes
  • then, if you can make the change
  • select ‘OK’
  • return to guidance TCM0022100.

If none of the above messages display, return to guidance TCM0022100.

Step 15

  • enter the change on the free format screen, follow the guidance in TCM1000036.
  • delete the change from the claim