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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - children (F-Z): Full-time non-advanced education or approved training - left and registered with qualifying body

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020 
  • 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 are in the correct MU. Use TCM0322460.

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

When you are notified that a child or young person has left full-time non-advanced education / approved training (FTNAE / AT) and has registered with a qualifying body, check that you have the following information regarding the child or young person

  • child’s surname
  • child’s forename
  • date of birth (DOB)
  • date they left FTNAE / AT
  • date they registered with a qualifying body, if applicable

If the child or young person has started

  • paid work of 24 hours or more a week
  • getting Income Support, Jobseeker’s Allowance, Employment and Support Allowance, Incapacity Benefit or tax credits in their own right

    • obtain the date any of the above occurred

    Note: If the young person reaches 18 years of age before the end of the 20-week period, payment of tax credits stops the day before their 18th birthday.

    Note: There is no requirement for the child or young person to do anything other than register with a qualifying body. However, once registered should the young person cease that registration within the 20-week period, then entitlement will also cease at that point.

If you don’t have all the information, go to .

If you have all the information, go to .

Step 2

Phone the customer, follow the guidance in TCM0094080.

If you can contact the customer and obtain the missing information, go to .

If the customer can’t be contacted by phone

  • send form TC664 to the customer for the missing information
  • set a clerical BF date of 14 days in the future

If you can’t obtain the missing information after following the normal reminder cycle

  • you must then use the date the customer informed HMRC of the change as the effective date to end FTNAE / AT
  • go to .

Step 3

Check the status of the claim. For how to do this, use TCM1000025.

If the claim is pre-award, go to .

If the claim is post award, go to .

Step 4

Enter the reason for the change in the Free Format screen. For example, ‘Child has left FTNAE’ and the following details of the child or young person

  • child’s surname
  • child’s forename
  • date of birth
  • date they left FTNAE / AT
  • date they registered with a qualifying body if applicable

also, if the child or young person has started

* paid work of 24 hours or more weekly
* getting Income Support, Jobseeker’s Allowance, Employment and Support Allowance, Incapacity Benefit or tax credits in their own right
  • record the date any of the above occurred

For how to do this, use TCM1000036 

  • go to .

Step 5

If the child or young person has registered with a qualifying body, go to .

If the entitlement ends before the 20-week period expires, go to .

Note: The run-on is payable for 20 weeks.

Note: Entitlement to tax credits ends if the child or young person

* starts paid work for 24 hours or more weekly

or   


* ceases to be registered with the qualifying body during those 20 weeks 

or  


* starts receiving Income Support, income-based Jobseeker’s Allowance, Employment and Support Allowance, Incapacity Benefit or tax credits in their own right 

or  


* they reach 18 years of age before the end of the 20-week period and payment stops the day before their 18th birthday.

If the claim is withdrawn or rejected, invite the customer to make a new claim with the new information. Follow the guidance in TCM0044080.

Step 6

Note: If the date the child or young person registered with a qualifying body is more than three months from the date they ceased FTNAE / AT they are not eligible for the run-on.

If the customer notified you within three months of the date the child or young person left FTNAE / AT that they had registered with a qualifying body, go to .

For example: a customer tells you on 15/09/2011 that a young person aged 17 years is registered with a qualifying body. The young person left FTNAE / AT on 20/06/2011 and registered with a qualifying body on 08/09/2011. As they registered and you were notified of that registration within three months of the young person leaving FTNAE / AT the date in the Start Date field is 20/06/2011.

If the customer did not notify you within three months of the date the young person left FTNAE / AT or approved training that they had registered with a qualifying body, the change can’t be accepted, follow the guidance in TCM0034080.

For example: a customer tells you on 09/03/2012 that a young person aged 16 years registered with a qualifying body on 20/11/2011 after leaving approved training on 16/11/2011. Although the young person registered within three months of leaving approved training, you weren’t notified by the customer until more than three months after the child or young person left approved training. Therefore, you can’t enter the change on the computer.

Step 7

Check the start date that the child or young person registered with the qualifying body.

If the child left FTNAE / AT prior to 1 September following their 16th birthday, go to .

For example: child’s date of birth is 27/07/1995 and they left FTNAE / AT on 16/08/2011.

If the child hasn’t left FTNAE / AT prior to 1 September following their 16th birthday, go to .

For example: child’s date of birth is 27/07/1995 and they left FTNAE / AT on 01/10/2011.

Step 8

Where the child left FTNAE / AT prior to 1 September following their 16th birthday, CTC will continue to be paid automatically until 31 August. The tax credits computer cannot calculate the correct 20 week period in this circumstance, so this will need to be calculated manually.

For example: child aged 15 or 16 years left FTNAE / AT on 01/06/2011. CTC will automatically continue to be paid until 31/08/2011. They registered with a qualifying body on the 16/07/2011 and the CTC customer notified you of this on 23/07/2011. You would use the day after they left FTNAE / AT to calculate the 20-week run-on. The 20-week period runs from 02/06/2011 to 19/10/2011 in this scenario.

If the manually calculated run-on end date is prior to 1 September, go to .

Note: if the end date is prior to 1 September following the child’s 16th birthday no further action is required as CTC will already be being paid until 31 August.

If the manually calculated run-on end date is on or after 1 September, go to .

Note: The run-on is payable for 20 weeks from the day after they left FTNAE / AT.

Note: the correct start date will be the day after they left FTNAE / AT. However, as the tax credits computer is unable to accept a start date before 31 August following the young person’s 16th birthday, 01/09/YY must be used, and the correct end date needs to be manually calculate and typed in over the end date incorrectly calculated by the tax credits computer.

Note: Entitlement to tax credits ends if the child or young person

* starts paid work for 24 hours or more weekly 

or  


* ceases to be registered with the qualifying body

or   


* starts getting Income Support, income-based Jobseeker’s Allowance, Employment and Support Allowance, Incapacity Benefit or tax credits in their own right 

or  


* they reach 18 before the end of the 20-week period and payment stops the day before their 18th birthday.

Step 9

Enter the Connexions, local authority support services start and end date. For how to do this, use TCM1000383.

Note: If the message ‘1 month restriction applied to include from date. Check if correct’ displays, you will need to go to the History screen to amend the Include From date.

If the history screen needs amending, go to .

If the history screen doesn’t need amending, go to .

Step 10

Change the Include From date in the Connexions, local authority support services history screen. For how to do this, use TCM1000381.

  • go to .

Step 11

If the entitlement for tax credit has ended because you are notified that a child or young person has started

  • paid work of 24 hours or more weekly

or

  • getting Income Support, income-based Jobseeker’s Allowance, Employment and Support Allowance, Incapacity Benefit or tax credits in their own right
  • go to .

If the young person ceases to be registered with the qualifying body

Note: where the child young person has taken up FTNAE / AT, follow the guidance in TCM0034160.

  • amend the Connexions, local authority support services or similar end date. For how to do this, use TCM1000380 
  • go to .

Step 12

Complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032.

Note: The changes you have made will not be applied until you complete the ‘Amend Finish’ screen and select ‘OK’.

If a warning message displayed and you had to pass the case to a Level 2 User or your manager, take no further action.

If no warning message displayed, go to .

Step 13

Update Household Notes with the appropriate message - NC83, NC47, NC48, NC49 or NC44 from TCM0164020. For how to do this, use TCM1000001 

  • go to .

Step 14

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