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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Changes - death (child): death of a child - Priority 1 team only

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

Background

All cases notified to the Priority 1 Team involving the death of a child or young person will be dealt with by the Priority 1 Team.

The Priority 1 Team will deal with all tax credits or Child Benefit aspects of the case that relate to the death of the child or young person. This will include

  • contacting the customer to ascertain all the relevant details, if required
  • verifying the child against information already held on Child Benefit On Line (CBOL), or where this is not possible, requesting the child’s original birth certificate
  • sending a standard letter of condolence with any correspondence issued
  • amending any claim to tax credits that has been made
  • capturing any new tax credits and/or ChB claim that is received and is marked ‘Priority 1 Team’.

Note: During a phone call with the customer, if they have 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.

An award of tax credits and/or ChB can continue for up to eight weeks after the date of death of the child or young person. However, if the Young Person turns 20 during the eight week run on period, entitlement will cease at the earlier date i.e. when the Young Person turns 20.

Where a customer and child have both died, and the surviving partner is not responsible for the death, entitlement to CTC immediately before the death for the deceased child will be due to the surviving partner. As the original joint claim is finalised on the death of a claimant, any entitlement to the eight week run on for CTC will be made by manual payment.

If a child is stillborn, there is no entitlement to Child Tax Credit or Child Benefit for that child. Parents can register a stillbirth but there is no birth certificate.

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 or Data Security Team for advice.

Step 1

Access the Child Benefit On Line (CBOL) computer system. For how to do this use, TCM1000230.

Note: You may have to enter the partner’s NINO if applicable.

If a child benefit reference number is shown 

  • make a note of the number
  • go to .

If a child benefit reference number is not shown, go to .

Step 2

Access the child details screen on CBOL to see if the deceased child or young person’s details match with NTC. For how to do this, use TCM1000297.

If the details on CBOL and NTC match, go to .

If the details on CBOL and NTC do not match

  • issue TC1146 selecting the relevant option
  • BF the case for 37 days
  • go to .

Step 3

Phone the customer, executor, next of kin, personal representative or guardian and ask if they would like to make a claim for Child Benefit. Follow the guidance in TCM0094080.

Note: Treat all phone contact with sympathy and sensitivity.

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 the customer would like to make a claim for Child Benefit

  • issue a Child Benefit claim pack, marked Priority 1
  • BF case for 37 days.
  • go to .

If the customer does not wish to make a claim for Child Benefit

  • tell them we will issue a letter requesting the birth certificate and that they should return this to us as soon as possible
  • issue TC1146
  • BF case for 37 days
  • go to .

If the customer does not wish to claim Tax Credits or Child Benefit for the deceased child or send in the birth certificate

  • take action to end responsibility for the child, from the date of birth or from the effective date, whichever is earlier. Follow the guidance in TCM1000171.

Note: If the change relates to a previously finalised award follow the guidance in TCM0044200.

  • take no further action.

If you are unable to make telephone contact

  • issue TC1146 including the option notifying the customer that they may be entitled to Child Benefit
  • go to .

Step 4

On the BF expiry date access CBOL and establish whether a Child Benefit claim has been made. For how to do this, use TCM1000230.

Note: you may have to enter the surviving partner’s NINO, if applicable

If the Child Benefit claim is not traced, contact the customer to ask if they have sent the claim in or if they still want to claim.

If they still want to claim Child Benefit but we have not yet received their claim pack 

  • issue a duplicate ChB claim pack

Note: If they have only sent the claim to us recently a duplicate claim pack may not be necessary.

  • BF the case for a further two weeks
  • go to .

If they no longer wish to make a claim for Child Benefit

  • tell them we will issue a letter requesting the birth certificate and that they should return this to us as soon as possible
  • issue TC1146
  • BF case for 37 days
  • go to .

Step 5

On expiry of the BF cycle check if the birth certificate has been returned and if the details match with NTC. For how to do this, use TCM1000297.

If the birth certificate has been returned and the details match with those held on NTC, go to .

If the birth certificate has been returned but the details do not match with NTC

  • take action to end responsibility for the child, from the date of birth or from the effective date, whichever is earlier. Follow the guidance in TCM1000171.

Note: If the change relates to a previously finalised award follow the guidance in TCM0044200.

  • take no further action.

If the birth certificate has not been returned

  • take action to end responsibility for the child, from the date of birth or from the effective date, whichever is earlier. Follow the guidance in TCM1000171.

Note: If the change relates to a previously finalised award follow the guidance in TCM0044200.

  • take no further action.

Step 6

Check for the exact date of death of the deceased child. Where this has not been provided by the person who gave notification of the death it may be obtained from the Access to DWP Data (ADD) system or from the tax credit computer. Follow the guidance in TCM1000152.

If the exact date of death is found, go to .

If the exact date of death is not found, go to .

Step 7

Phone the customer, executor, next of kin, personal representative or guardian for the date of death. Follow the guidance in TCM0094080.

Note: Treat all telephone contact with sympathy and sensitivity.

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 obtain the exact date of death, go to .

If the exact date of death cannot be confirmed or telephone contact cannot be established, go to .

Step 8

Check if the notification was received from the customer, the customer’s representative or another Government department.

If the notification was received from the customer or customer’s representative

  • issue TC1143 selecting the appropriate option
  • BF the case for 37 days
  • go to .

If the notification was received from another Government Department 

  • issue a TC1134 to prompt the customer to advise us of the change of circumstances
  • BF the case for 37 days
  • go to .

Step 9

On expiry of the BF cycle check if the exact date of death is confirmed.

If the exact date of death is confirmed on receipt of either TC1143, or TC1134, go to .

If the exact date of death is not confirmed on the BF expiry date

  • minute the case to the O Band
  • await a decision on any further action based on the evidence on file.

Step 10

After following the guidance in TCM0042260 (as part of the guidance in TCM0138020 in the Checklist)

If the death relates to the current year (CY) or an unfinalised award, go to .

If the death relates to a finalised previous year (PY) award

then

  • return to this guidance
  • go to .

If the death relates to a finalised PY-1 or earlier award

then

  • return to this guidance
  • go to .

Step 11

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 12

Check if the deceased child is already shown on the claim.

If the deceased child is already shown on the claim 

  • enter the following on the ‘Free Format’ screen. For how to do this, use TCM1000036.

    • name of the deceased child
    • date of death
    • source of the information
    • ‘All work list entries are to be dealt with by the Priority 1 Team only’

    Note: The changes will be stored on the ‘Free Format’ screen. Once the claim has been awarded, an entry will be created on the Unprocessed Change of Circs work list.

  • go to .

If the deceased child is not already shown on the claim

  • enter the following on the ‘Free Format’ screen. For how to do this, use TCM1000036.

    • the reason for the change - for example, ‘A child to be added to the claim for the first time’
    • name of the deceased child
    • date of birth
    • date of death
    • date of notification
    • source of the information
    • childcare start date, if applicable
    • childcare details, if applicable
    • responsibility start date
    • date the customer notified us of the child to be added to the claim
    • disability start date, if applicable
    • DLA (HCC) / PIP (ER) start date, if applicable
    • Connexions or Local Authority Support Services start date, if applicable
    • full-time education start date, if applicable
    • ‘All work list entries are to be dealt with by the Priority 1 Team only’

    Note: The changes will be stored on the ‘Free Format’ screen. Once the claim has been awarded, an entry will be created on the Unprocessed Change of Circs work list.

  • go to .

Step 13

Check whether the claim goes straight into an award. For how to do this, use TCM1000278.

If the claim goes straight into an award

  • apply the change. Follow the guidance in TCM0054060 
  • go to .

If the claim does not go straight into an award, go to .

Step 14

Check for any verification failures. For how to do this, use TCM1000150.

Note: If there is a rule 2b verification failure and you have any suspicions about the claim, transfer the work list item to the Compliance ‘Identity Fraud Referrals’ MU. Use TCM0322460 for the correct MU number. If the claim is from the genuine person then Compliance will return the work list item back to you within two days.

If there are any high risk verification failures

If there are no high risk verification failures, go to .

Step 15

Note: For guidance on childcare payments, use TCM0112020.

If childcare payments are being made by the customer and the death of the child will alter those payments, go to .

If childcare payments are being made by the customer and the death of the child will not alter those payments, go to .

If childcare payments are not being made by the customer, go to .

Step 16

If the childcare costs were being paid for the deceased child at the date of their death

  • end the childcare costs for the deceased child eight weeks from the date of death. For how to do this, use TCM1000163 or TCM1000167.

Note: Do not complete the ‘Amend Finish’ screen at this point.

Note: If there is already an end date present, do not amend the date.

  • go to .

If the customer has told us the childcare costs for the deceased child ended prior to the child’s date of death

  • calculate the effective end date of the childcare costs. For how to do this, use TCM1000140.
  • end the childcare costs for the deceased child. For how to do this, use TCM1000163 or TCM1000167 

Note: Do not complete the ‘Amend Finish’ screen at this point.

Note: If there is already an end date present, do not amend the date.

  • go to .

Step 17

Check if the details of the deceased child are already recorded on the tax credits computer.

If the details of the deceased child are already recorded, go to .

If the details of the deceased child are not already recorded

  • enter the deceased child’s details. For how to do this, use TCM1000182 

Note: Do not complete the ‘Amend Finish’ screen at this point.

  • go to .

Step 18

Check if the child or young person is still included in the existing claim. For how to do this, use TCM1000302.

If the young person is still included in the existing claim, go to .

If the young person is no longer included in the existing claim and the date they stopped being included is before the date of death 

  • enter the date of death of the child in the ‘Correction Child’ screen
  • go to .

If the young person is no longer included in the existing claim and the date they stopped being included is after the date of death 

  • make a note of the date
  • go to .

Step 19

Check if the deceased child or young person was in FTNAE, Approved Training (AT) or registered with Connexions or Local Authority Support Services immediately prior to the date of death. For how to do this, use TCM1000531 and TCM1000302.

If the young person was registered with Connexions or Local Authority Support Services immediately prior to the date of death 

  • enter the date of death of the young person in the ‘Correction Child’ screen
  • go to .

Note: An award of tax credits can continue for eight weeks after the date of death of the young person. However, where the 20 week extension end date was already due to end during the eight-week run-on, tax credit entitlement will still end at the earlier date.

If the deceased child or young person was not in FTNAE or AT immediately prior to the date of death

  • enter the date of death of the child in the ‘Correction Child’ screen
  • go to .

If the deceased child or young person was in FTNAE or AT immediately prior to the date of death 

  • make a note of the

    • Full Time Education (FTE) start dates and end dates

    and

    • whether the FTNAE date has been extended past 31/08/CY

Note: Once the 31/08/CY date has passed the FTE start and end dates will be available to view in the FTE ‘history’ screen.

  • go to .

Step 20

Has the FTNAE end date previously been extended past 31/08/CY?

If the FTNAE date has previously been extended past 31/08/CY and is now showing as 31/08/CY+1

  • enter the date of death of the child in the ‘Correction Child’ screen

Note: Once you have entered the date of death of the child, the computer will automatically populate the ‘Responsibility End Date’ field with a date that includes an eight-week run-on period.

  • go to .

If the FTNAE date has not previously been extended past 31/08/CY, go to .

Step 21

You will need to extend the FTNAE end date to ensure the customer receives payments for the eight week run on period.

Note: Where the FTNAE 12 month extension date has not been applied, the tax credit computer will only pay the Young Person’s element up to the FTNAE end date 31/08/CY. Therefore, to ensure the customer receives payment for the full eight week run on period, you may need to extend the FTNAE end date. The action you take will depend on when you are working the claim.

Note: The eight week period prior to the 31/08/CY will start on the 07/07/CY therefore, if you are entering the date of death between 07/07/CY and 31/08/CY or the child or young person’s date of death is between these dates, the FTNAE end date will always need to be extended to ensure the customer receives the full eight week run on payment.

If you are entering the date of death between 17/04/CY and 06/07/CY

  • you will not need to extend the ‘Full Time Education’ date
  • enter the date of death of the child in the ‘Correction Child’ screen

Note: Once you have entered the date of death of the child, the computer will automatically populate the ‘Responsibility End Date’ field with a date that includes an eight-week run-on period.

  • go to .

If you are entering the date of death between 07/07/CY and 31/08/CY

  • you will need to extend the ‘Full Time Education’ date
  • in the ‘Correction Child’ screen ‘tick’ the ‘FTNAE extend’ checkbox

Note: The ‘FTNAE extend’ checkbox is next to the FTNAE start and end date fields. The ‘checkbox’ will only be available to be checked between 17/04/XX and 31/08/XX. Outside these dates the ‘checkbox’ will be greyed out and unavailable for use.

then

  • enter the date of death of the child in the ‘Correction Child’ screen

Note: Once you have entered the date of death of the child, the computer will automatically populate the ‘Responsibility End Date’ field with a date that includes an eight-week run-on period.

  • go to .

If you are entering the date of death after 31/08/CY

  • you will need to extend the FTE date
  • in the ‘Correction Child’ screen in the ‘Full Time Education’ start date field enter the start date as 01/09/CY

Note: You must also ensure that the include from date is also entered as 01/09/CY. You will need to go into the ‘FTE History’ screen to do this.

  • enter the date of death of the child in the ‘Correction Child’ screen

Note: Once you have entered the date of death of the child, the computer will automatically populate the ‘Responsibility End Date’ field with a date that includes an eight-week run-on period.

  • go to .

Step 22

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

Note: When you’ve completed the ‘Amend Finish’ screen, the computer will automatically accept the amendments and will apply the change from the effective date.

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 a warning message displayed and you were able to make the change

  • send letter TC662 to the customer

Note: If there is also a Child Benefit interest, only complete letter TC662 once all system action is completed

  • go to .

If a warning message did not display

  • send letter TC662 to the customer

Note: If there is also a Child Benefit interest only complete letter TC662 once all system action is completed

  • go to .

Step 23

Update Household Notes with the appropriated messages from TCM0164040. For how to do this, use TCM1000001.

Note: The household note should be ‘Retained’

  • send any correspondence to storage. Follow the guidance in TCM0074140.
  • go to .

Step 24

If there is Tax Credit interest only,take no further action

If there is a Tax Credit and Child Benefit interest, go to CBPG9400.