HMRC internal manual

Tax Credits Manual

From:: HM Revenue & Customs
Published: 9 April 2016
Updated:: 23 April 2024 - See all updates

TCM0038120 - Changes - death (child): Death of a child - new claims (AG)

To deal with new claims that also notify you of the death of a child or young person, consider steps 1 to 21.

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: All children/qualifying young persons should be added to the award. Customers will still receive the childcare and/or disability element for all children/qualifying young persons if they are entitled, even if they are not in receipt of the child element.

Note: An award of tax credits can continue for eight weeks after the date of death of a child or young person. However, where tax credit entitlement ends due to notification of Universal Credit (UC) interest and this occurs during the eight-week run-on, tax credit entitlement will end at the earlier date and the extension will no longer be applicable.

For example: TCO are notified of the death of a child. The date of death is recognised as being 10 September 2018 and entitlement automatically extends to 5 November 2018. TCO then receive a Stop Notice from DWP advising that the customer has claimed UC on 30 September 2018. Tax Credit entitlement will end with effect from 29 September 2018 and the run-on will end on the same day.

Step 1

Note: If you are dealing with a claim where an exception marker has been applied to any of the children/young persons included in the claim or the customer is reporting a change relating to an exception contact the Exception Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) . For how to check if the exception marker has been applied, use TCM1000314.

When you receive a claim form that has Priority 1 Team clearly marked in red on the front

use Function CAPTURE APPLICATION to capture the claim following the guidance in TCM0062020
then
go to Step 2.

Note: If a Child Benefit claim form is received with the claim follow the guidance in TCM0038160 to update the claim with details of the child’s date of death before proceeding to Child Benefit actions.

Step 2

Use Function AMEND APPLICATION and select the Change of Circumstances option. You will be taken to the Key Entry Data screen. On this screen

Enter the NINO

select the [ALL] checkbox
select [OK]
then
go to Step 3.

Step 3

On the Free Format screen enter the following details

name of the child
date of birth
date of death
date of notification
source of information (for example, letter or phone)
name of any childcare providers, if appropriate
details of any childcare payment relating to the deceased child
a note to state that ‘All worklist entries are to be dealt with by the Priority 1 Team only’
then
go to Step 4.

Step 4

If the claim

goes straight to award, access the Unprocessed Change of Circumstances work list to apply the change of circumstances, following the guidance in TCM0054060
- when using Sort and Filter, use the same date as you used to enter the details on the Free Format screen
  then
- go to Step 7.
doesn’t go straight to award, go to Step 5.

Step 5

Use Function CAPTURE APPLICATION and select the Verification Failures option from the drop down menu. If

there are any high risk verification failures for the customer, go to Step 6.
there is a verification failure 2b and there is suspicion about the claim, then transfer the item to MU 262104 (Compliance). If the claim is from the genuine person then Compliance will return the item within two days.
there are no verification failures, go to Step 7.
there are only low risk verification failures, go to Step 7.

Step 6

If the high risk verification failure is

Child Not Matched, go to Step 7.
any other high risk verification failure
- follow the relevant guidance in TCM0078000, to clear the verification failure. You may also find the helpcard in TCM0066100 useful
  then
- go to Step 7.

Note: If at any time you have to contact the customer by telephone or letter, use wording appropriate to this sensitive situation. For example, start by saying ‘I am sorry to hear of your loss’.

Step 7

Minimise the NTC screen on your computer and

access the Child Benefit Service desktop icon
then
go to Step 8.

Step 8

Enter the customer’s NINO in the upper navigation bar and select ‘search’

check the customer’s name and address in the top left corner of the screen to ensure you select the correct customer details
go to Step 9.

Step 9

Check the children’s summary for details of the child.

If you have determined a Child Benefit claim has been made and there is a verification failure for the Child Not Matched

change the Verification Status by following TCM0078220 (pre award) TCM0078180 (post award). You may also find TCM0066100 useful

then

go to Step 19

Note: Where the verification failure is due to differences in the name of the child, the Child Benefit Service is linked into the GRO, with the exception of NI and EEA/International cases. This means that the child information details on the Child benefit Service are likely to be the most accurate.

If you have determined a Child Benefit Claim has been made and there are no verification failures, go to Step 19.

If you have determined a Child Benefit Claim has not been made, go to Step 10 .

Step 10

Check if you have received a birth certificate for the deceased child with any of the information that has been supplied by you.

If a birth certificate is held, go to Step 11.

If a birth certificate is not held, go to Step 12.

Step 11

Use Function Maintain Household Notes to

record the birth certificate has been received at Tax Credit Office (TCO)

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

return the birth certificate to the customer with a compliment slip
use function AMEND APPLICATION and go to the Household Details screen
go to Step 19

Step 12

If you haven’t been provided with a birth certificate and can’t trace a Child Benefit claim, phone the customer following the guidance in TCM0094080.

When you contact the customer tell them
- you are sorry to hear of their loss
- they can still claim tax credits for this child if they wish (a further sensitive explanation may be needed that CTC for this child continues for eight weeks after the date of death).
  Note: An award of tax credits can continue for eight weeks after the date of death of a child or young person. However, where tax credit entitlement ends due to notification of Universal Credit (UC) interest and this occurs during the eight-week run-on, tax credit entitlement will end at the earlier date and the extension will no longer be applicable.
  If they want to do this, we need them to either make a claim to Child Benefit or send us a birth certificate
  then
- If the customer states
  - they wish to make a claim to Child Benefit, go to Step 13
  - they will send you a birth certificate, tell them that we will send them a letter with a prepaid envelope for them to return it to us, then go to Step 14
  - they don’t wish to do either at this time, go to Step 15
    Note: If the customer has an enquiry about tax, explain you are unable to deal with their query and transfer the call to the Needs Enhanced Support (NES) Team who will be able to help. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) If you are unable to get through to the NES Team, complete the Needs Enhanced Support (NES) Handover Form, held in the Priority 1 team Controlled Access Folder, noting the customer’s preferred time for call back(This content has been withheld because of exemptions in the Freedom of Information Act 2000) . The NES Team will arrange to call the customer back.
If you can’t contact the customer by phone or can’t obtain the customer’s phone number, go to Step 14.

Step 13

Issue a Child Benefit claim form.

use Function CAPTURE APPLICATION and go to the Summary Information screen to record the action you have taken in Application Notes field
Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152040.
then
set a BF date for three months
go to Function AMEND APPLICATION and go to the Household Details screen
go to Step 16.

Step 14

Write to the customer to request the birth certificate

Use Function MAINTAIN HOUSEHOLD NOTES to record the action you have taken
Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
then
access ‘Forms and Letters’ in SEES in Microsoft Excel
complete TC1146
enter your request for the birth certificate
tell the customer that they may be entitled to a payment from Child Benefit. If they want to know more they can phone the Child Benefit helpline on 0300 200 3100
issue the letter with a return envelope clearly marked ‘Priority 1 Team’
set a BF date for 37 days.
use Function AMEND APPLICATION and go to the Household Details screen
go to Step 16.

Step 15

Tell the customer

if they change their mind they can contact you again but that any claim submitted will be subject to the appropriate backdating rules.
your name and contact number
then
go to Step 18.

Step 16

If the customer

returns a Child Benefit claim form to the Priority 1 Team, go to Step 19
sends the birth certificate to the Priority 1 Team, go to Step 17
doesn’t return either of the above by 37 days BF date, go to Step 18.

Step 17

Use Function MAINTAIN HOUSEHOLD NOTES to

record that the birth certificate has been received at TCO
Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
return the birth certificate to the customer with a compliments slip.
use Function AMEND APPLICATION and go to the Household Details screen
go to Step 19.

Step 18

Use Function AMEND APPLICATION and on the Amend Application screen

select [Ch] on the Application toolbar
select the deceased child’s name
select [Delete] to remove the child from the claim
take no further action.

Step 19

Follow the guidance in TCM0038160 to update the claim with details of the child’s date of death.