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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Backdating: backdating (all): manual calculation - backdating

Version 3.0

Changes to previous version - amended guidance. Amendments to steps 1, 9, 10, 12, 13, 14, 15 and new step 11.

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 and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • you have access to the Access To DWP (ADD) system
  • you have access to the Common Enquiry Service (CES) system

Reasons not to follow this guidance

You don’t need to follow this guidance if

  • you have access to function amend effective date

Background

This guidance is to be used on all claims that you can’t backdate on the tax credits computer.

Step 1

If you are dealing with a WAM referral, go to .

If you are dealing with a letter from the customer, go to .

If you are dealing with a retrospective backdating request, go to .

If you are dealing with an expired BF, go to .

If you are dealing with a reply to a previous enquiry and all the information has been provided, go to .

If you are dealing with a reply to a previous enquiry and all the information has not been provided, go to .

Step 2

Check the claim to establish the following information

  • income details
  • start and end dates for all elements
  • change of circumstances that have happened
  • start and end dates of previous claims

For how to do this, use TCM1000249 and TCM1000427.

  • go to .

Step 3

Check ADD to establish if the customer is in receipt of any of the following benefits

  • Income Support
  • Jobseekers Allowance (Income Based)
  • State Pension Credit
  • Income related employment and support allowance
  • Disability Living Allowance
  • Personal Independence Payment

Note: From 08/04/13 Personal Independence Payment (PIP) will be introduced as a replacement for DLA for customers of working age (16-64 years of age). PIP will be made of two elements consisting of daily living and mobility and two levels of rates which are standard or enhanced. Customers under 16 and over 65 years old will remain on DLA.

Note: For tax credit purposes, the Highest Rate Care Component of DLA is the same as the Enhanced daily living component of PIP, and will allow the customer to qualify for the Severe Disability element, so long as the other qualifying conditions are met. There is also an Enhanced mobility component of PIP, but this does not allow the customer to qualify for the extra element.

Note: For tax credit purposes, the current low and middle rates of DLA (whether care or mobility) will be either standard daily living or standard mobility component of PIP, and will allow the customer to qualify for the Disability element so long as the other qualifying conditions are met.

  • go to .

Step 4

Check Household Notes to see if there are any notes relating to residency. For how to do this, use TCM1000067.

  • go to .

Step 5

Consider the information you have gathered and the information provided on the letter or WAM

If the customer has provided enough information to deal with their query, go to .

If the customer has not provided enough information to deal with their query, go to .

Step 6

Contact the customer by phone to ask them for the missing information. Follow the guidance in TCM0094080.

If you are able to contact the customer by phone, go to .

If you are unable to contact the customer by phone, go to .

Step 7

Ask the customer for the missing information you need in order to deal with their backdating request

If you are able to obtain the missing information, go to .

Note: Make a note of the phone call on a form TC648.

If you are unable to obtain the missing information, go to .

Step 8

Send the appropriate TC664 form to the customer

  • set a clerical BF date of 30 days in the future
  • update Household Notes with the message BZ26 from TCM0156040. For how to do this, use TCM1000001 
  • take no further action.

Step 9

Using the information you have, determine the amount the customer is entitled to using the SEES Tax Credits Entitlement Calculator. For how to do this, use TCM1000089 

Note: Print the calculation sheets off

If the award is above the minimum amount that Tax Credits would pay and you are not dealing with a retrospective backdating request, go to .

If the award is above the minimum amount that Tax Credits would pay and you are dealing with a retrospective backdating request, go to .

If the award is below the minimum amount that Tax Credits would pay, go to .

Step 10

Complete the manual payment form TC648 with the amount of the payment to be issued and the period it covers

Note: Repeat for all relevant tax years

  • go to .

Step 11

Complete the retrospective backdating excel spreadsheet with the amount of the payment to be issued and the period it covers

Note: Repeat for all relevant tax years

Note: Your manager will be able to provide you with details of the spreadsheet

  • go to .

Step 12

Send the appropriate form TC835, TC835A, TC835DM or TC1206 to the customer

  • go to .

Step 13

If you are dealing with a retrospective backdating case, go to

If you are not dealing with a retrospective backdating case 

  • complete a manual award notice for any claim where the automated award notice doesn’t cover the backdated period. For how to do this, use TCM1000538 
  • go to .

Step 14

Update Household Notes with the appropriate message BZ10, BZ22, BZ27, BZ28 or BZ30 from TCM0156040. For how to do this, use TCM1000001 

  • go to .

Step 15

Send any documentation to storage, follow the guidance in TCM0074140.