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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 - referrals to Priority 1 team

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 and 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 Tax Credit Office that involve 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 aspects of the case that relate to the death of the child or young person. This will include

  • contacting the customer to determine all the relevant details, if required
  • issuing a new claim form
  • sending a standard letter of condolence with any correspondence issued
  • amending any claim to tax credits that has been made
  • reporting the death of the child to the Child Benefit Office, if appropriate
  • capturing any new tax credits claim that is received and is marked ‘Priority 1 Team’.

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

If a child is stillborn, there isn’t any entitlement to Child Tax Credit or Child Benefit for that child. Parents can register a stillbirth, but there isn’t a 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 / Data Security Team for advice.

Step 1

After following the guidance in TCM0042260 (as part of the guidance in TCM0138020 in the ‘Checklist’ at the start of this guidance)

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 2

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 3

If the deceased child is already shown on the claim

  • enter the following on the ‘Free Format’ screen

    • name of the deceased child
    • date of death
    • source of the information
    • the message ‘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.

For how to do this, use TCM1000036 

  • go to .

If the deceased child isn’t already shown on the claim

  • enter the following on the ‘Free Format’ screen

    • 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
    • the message ‘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.

For how to do this, use TCM1000036 

  • go to .

Step 4

Check the status of the claim. For how to do this, use TCM1000278.

If the claim goes straight into award

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

If the claim doesn’t go straight into award, go to .

Step 5

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

Note: If there’s a rule 2b verification failure and you’ve 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 aren’t any high risk verification failures, go to .

Step 6

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 won’t alter those payments, go to .

If childcare payments aren’t been made by the customer, go to .

Note: For guidance on childcare payments, use TCM0112020.

Step 7

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 TCM1000167 and TCM1000163 

Note: Don’t complete the ‘Amend Finish’ screen at this point.

Note: If there is already an end date present, don’t 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 and TCM1000167 

Note: Don’t complete the ‘Amend Finish’ screen at this point.

Note: If there is already an end date present, don’t amend the date.

  • go to .

Step 8

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 on the tax credits computer

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

Note: Once you’ve 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 details of the deceased child aren’t already recorded on the tax credits computer

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

Note: Don’t complete the ‘Amend Finish’ screen at this point.

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

Note: Once you’ve 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 9

Set the ‘Manual Correspondence’ marker. For how to do this, use TCM1000063 

Note: You must set the ‘Manual Correspondence’ marker to ensure the form TC602 isn’t issued to the customer, as it contains information that could be seen as insensitive at this time.

  • go to .

Step 10

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 form TC662 to the customer
  • go to .

If a warning message didn’t display

  • send form TC662 to the customer
  • go to .

Step 11

Update Household Notes using the ‘General’ category

  • with the appropriate message from TCM0164040. Make sure you select the ‘Retained’ checkbox for this message. For how to do this, use TCM1000001 

then

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