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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - miscellaneous (G-Z): Household change - customer/child in more than one award (AG)

Background

In circumstances when a new claim for Child Tax Credit (CTC) is made following a household breakdown, the computer will automatically backdate the new claim.

This will result in a verification failure, as the child or customer will be included in more than one tax credit claim.

Guidance

To prevent a verification failure being created when a new claim for CTC is made following a household breakdown, consider steps 1 to 7.

Step 1

Before making any changes, follow the guidance in TCM0042260.

  • If the changes can be made, go to .

Step 2

To prevent the claim from being automatically backdated to a date earlier than the effective date and creating a Claimant or Child in Current NTC Award verification failure

  • the effective date entered must be a date that is later than the end date of the previous claim

and

  • the received date entered must be a date that is later than the effective date
  • go to .

Step 3

If

  • the customer notifies a household breakdown and is invited to make a new claim, go to .
  • a new claim is received with an attachment notifying a household breakdown, go to .
  • a new claim is received following a household breakdown, with an attachment requesting an earlier effective date, go to .

Step 4

Contact the customer and ask them to send an attachment with their new claim requesting that their claim be treated as made from an earlier date

  • treat this date as a request for an earlier effective date
  • tell the customer that they can make a request for their claim to be made from the day after the end date of the previous claim
  • ask them to complete the claim form with their circumstances as at that date
  • take no further action.

Step 5

Contact the customer and ask them to confirm the date they wish their new claim to begin from, following the breakdown of the previous household

  • tell the customer that they can make a request for their claim to be made from the day after the end date of the previous claim
  • treat this date as a request for an earlier effective date
  • go to .

Step 6

Use Function AMEND APPLICATION and go to the Household Details screen

  • make a note of the Household End Date of the previous claim
  • cancel out of the claim
  • go to .

Step 7

Use Function CAPTURE APPLICATION and go to the Application Summary screen

  • Enter the new Effective Date
  • Enter a Received Date of at least one day after the Effective Date
  • In the Application Notes field, enter

‘WORKAROUND - ACTUAL RECD DATE =DD/MM/YYYY’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152040.

  • select [Finish]

For example

* the Household End Date on the finalised award is 01/05/2003
* the Effective Date on the new claim must be 02/05/2003
* the Received Date must be at least one day after the effective date, that is 03/05/2003 or later.