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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Backdating: backdating (all): benefit interest present - backdating

Checklist

Before you follow this guidance make sure

  • 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 have access to the Access To DWP (ADD) system or Common Enquiry Service (CES) system

Background

Benefit interest on a claim is where the customer

  • is in receipt of Income Support (IS), Jobseeker’s Allowance income-based (JSA)(IB), income-related Employment and Support Allowance (ESA IR) or Pension Credit (PC) at the date of claim

or

  • has commenced employment after ceasing IS, JSA (IB), ESA (IR) or PC

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

Check if the award is for CTC, WTC or both CTC and WTC. For how to do this, use TCM1000052.

If the award is for CTC only, go to .

If the award is for WTC only, go to .

If the award is for CTC and WTC, go to .

Step 2

Check to see if the CTC has been automatically backdated. For how to do this, use TCM1000467.

If the claim has been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has been backdated correctly and you were not previously following TCM0022240, go to .

If the claim has not been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has not been backdated correctly and you were not previously following TCM0022240, go to .

Step 3

Check to see if the WTC has been automatically backdated to the date the customer commenced their new employment. For how to do this, use TCM1000468.

If the claim has been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has been backdated correctly and you were not previously following TCM0022240, go to .

If the claim has not been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has not been backdated correctly and you were not previously following TCM0022240, go to .

Step 4

Check to see if the CTC and WTC have been automatically backdated to

  • 31 days prior to the date the claim was recorded as being received
  • the date a new child was born, where there is only one child in the family
  • the date responsibility for a child commenced, where there is only one child in the family

or

  • the date the customers started their new employment after ceasing IS, JSA (IB), ESA (IR) or PC, up to a maximum of 31 days.

Note: If the claim was recorded as received before 06-04-2012 the effective date for automatically backdating is up to a maximum of 93 days prior to the date the claim was received.

For how to do this, use TCM1000469.

If the claim has been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has been backdated correctly and you were not previously following TCM0022240, go to .

If the claim has not been backdated correctly and you were previously following TCM0022240, return to TCM0022240.

If the claim has not been backdated correctly and you were not previously following TCM0022240, go to .

Step 5

Establish the new effective date for backdating

If the new effective date requires forward dating. Follow the guidance in TCM0022060.

If the new effective date requires backdating. Follow the guidance in TCM0022040.

If the new effective date requires backdating and this can not be done on the tax credits computer. Follow the guidance in TCM0022320.

If the customer has given a reason to backdate their claim by more than 31 days, go to .

Note: If the claim was recorded as received before 06-04-2012 the effective date for automatically backdating is up to a maximum of 93 days prior to the date the claim was received.

Step 6

If the customer has been awarded a qualifying disability benefit they had applied for. Follow the guidance in TCM0022200.

If the customer has made a claim for tax credits more than 31 days ago, but there is no record of a claim relating to this period on the tax credits computer. Follow the guidance in TCM0022240.

Step 7

Send the appropriate form TC845, TC845A, TC845B, TC845C, TC845D or TC845E to the customer.

  • go to .

Step 8

Update Application Notes with the appropriate message BZ07 or BZ16 from TCM0156040. For how to do this, use TCM1000001.

  • go to .

Step 9

Send the correspondence to storage. Follow the guidance in TCM0074140.