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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - miscellaneous (G-Z): Signals history - correcting effective date (AG)

To deal with correcting a change of circumstances effective date, consider steps 1 to 13.

Step 1

Before making any changes you must follow the guidance in TCM0042260 

then, if the changes can be made

  • check that you have the following information

    • type of change
    • date the change occurred, for example, the hours worked start date of a new job

    • If you have been provided with all the information, go to .
    • If you have not been provided with all the information, go to .

Step 2

Where the customer has

  • contacted us, phone the customer for the missing information you need. Follow the guidance in TCM0094080.

    • If you obtain the missing information, go to .
    • If you are unable to contact the customer by phone or you cannot obtain the customer’s phone number, send form TC609 to the customer for the missing information

    • If you obtain the missing information, go to .
    • If you cannot obtain the missing information after following the normal reminder cycle, go to .
  • not contacted us, for example, if you notice that the change of circumstances has an incorrect date in the Include From field whilst working on a claim, do not contact the customer, go to .

Step 3

Check if the relevant circumstance exists on the initial claim. That is, the relevant element of entitlement was part of the original circumstances when the claim was received and was not applied later due to a change in circumstances. Use Function VIEW APPLICATION.

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]. You will be taken to the Application Summary screen

Note: If you are taken to the Select Application screen, this will mean that there is more than one claim for this customer. For example, cases where a household breakdown has occurred and the customer has re-applied. If you are taken to the Select Application screen, select the claims affected by this correction and then select [OK]. You will then be taken to the Application Summary screen.

  • select version 1 and check the initial version of the claim for the circumstance. To do this, in the Application Summary screen
  • select ‘VH’ on the toolbar menu. You will be taken to the Applicant 1 screen in Function VIEW APPLICATION HISTORY
  • select ‘Ap1’ or ‘Ap2’, as appropriate on the toolbar menu
  • select ‘History’ on the toolbar menu
  • select the appropriate signal from the options available. You will be taken to the History screen

Note: The signals that are relevant to the claim will be enabled. You must select the signal that is relevant to the correction you are making. From 27/10/2008, use the JSA signal to record changes for either JSA or ESA. Refer to the Access to DWP Data System manual if you need to confirm the actual benefit.

* Any restriction to the Include From field that has been subsequently applied (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  should be removed, go to .
* If the change was applied as a change of circumstances (it is not on the initial claim version), go to .

Step 4

Establish if the original change of circumstances resulted in an increase to the maximum tax credits award entitlement, that is, before any income reduction is applied. To do this, consider if the type of change has resulted in an increase to the elements of entitlement.

  • If there has been an increase to the elements of entitlement, go to .
  • If there has not been an increase to the elements of entitlement, go to to correct the date in the Include From field and remove any restriction.

Note: An increase to a maximum tax credits award entitlement is an increase to the elements of entitlement as a result of a change in circumstances. For example, increasing hours from 16 to 30.

Note: Income changes have no bearing on the change, resulting in an increase to the maximum tax credits award entitlement, and will not produce an increase in elements.

For example: a lone disabled customer has increased hours worked from 29 to 37. This is an increase to the maximum tax credits award entitlement as the customer will be entitled to the 30-hour element and is still an increase even if they report an increase in CY income so that they don not actually get any more money from us.

Step 5

If you

  • have the notified date (the earliest date that the customer notified us about their new circumstances), go to .
  • do not have the notified date, use Function MAINTAIN HOUSEHOLD NOTES to check for the notified date

    • If you obtain the notified date, make a note of the date and then go to .
    • If you do not obtain the notified date, find the version of the claim where the change of circumstances was first applied. To do this

    • use Function VIEW APPLICATION
    • go to the Select Application Version screen
    • select the initial version of the claim
    • select [OK]. You will be taken to the Application Summary screen
    • select ‘VH’ on the toolbar menu. You will be taken to the Applicant 1 screen in Function VIEW APPLICATION HISTORY
    • select ‘Ap1’ or ‘Ap2’, as appropriate on the toolbar menu
    • select ‘History’ on the toolbar menu
    • select the appropriate signal from the options available. You will be taken to the History screen. If the change of circumstances is not there, go to the next version
    • select [Versions] to look through each version of the claim
    • when you have found the version of the claim where the change of circumstances was first applied, use the date in the Received Date field of that version as the notified date
    • make a note of the date

    Note: The types of changes are indicated in Function VIEW APPLICATION by ‘Wk’ for work-related changes and ‘Apn’ for customer-related changes.

    Note: Where the date of the original notification of the change of circumstances from the customer is earlier than the change of circumstances first applied on the computer, the earlier date should always be used.

    then

    • go to .

Step 6

If the date the change of circumstances occurred is

  • more than three months prior to the original notification date, go to .
  • within three months of the original notification date, go to .

Note: You will have obtained the original notification date from the customer, from Function MAINTAIN HOUSEHOLD NOTES or from the date in the Received Date field from when the change was first applied in Function VIEW APPLICATION.

Step 7

Use Function VIEW APPLICATION

  • on the latest version of the claim, check that the date in the appropriate signal Include From field is the same as the date in the signal Start Date field
  • make a note of the date that the date in the Include From field should be
  • change the date in the appropriate signal Include From field to the same date as the date in the Start Date field. To do this, go to .

Step 8

The change of circumstances is over three months old and there is an increase to the maximum tax credits award entitlement.

  • If the date the change of circumstances occurred is more than three months prior to the original notification date, consider what the effective date of the change should be. To do this

    • in Function VIEW APPLICATION, calculate what the signal date in the Include From field should be to a date that is three months prior to the date notified and then go to .

    For example: a letter is received from a customer with a received from date stamp of 14/08/2007, which is two weeks prior to today’s date of 28/08/2007. The computer will set the date in the Include From field to 28/05/2007. You must change the date in the Include From field to three calendar months prior to the notification date, which is 14/05/2007.

  • If the date notified is earlier than today’s date and the change is more than three months from today’s date, the date in the Include From field will be incorrectly set by the computer

    • make a note of what the date in the Include From field should be
    • change the date in the signal Include From field to a date that is three months prior to the date notified. To do this, go to .

Step 9

Use Function AMEND APPLICATION choosing the Correction option

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]. You will be taken to the Applicant 1 Details screen

Note: If you are taken to the Select Application screen, this will mean that there is more than one claim for this customer. For example, cases where a household breakdown has occurred and the customer has re-applied. If you are taken to the Select Application screen, select the claims affected by this correction and then select [OK]. You will then be taken to the Applicant 1 Details screen

then

  • go to .

Step 10

In the Applicant 1 Details screen

  • go to the appropriate signal screen
  • select ‘History’ on the toolbar menu
  • select the appropriate signal
  • select the appropriate period of history entry
  • select [Change]. You will be taken to the Change screen
  • change the date in the Start Date field to one day earlier than the existing date

Note: If there is a previous period of History and the dates are consecutive with the period you are correcting. To prevent any overlapping of the periods of history, change the date in the Start Date field to a date that is one day later than the existing date.

Note: If the date in the Start Date field is already correct, to prompt the re-calculation of the award you must still change the date to an earlier date and then change it back to the correct date.

  • when the date in the Start Date field has been corrected, the date in the Include From field may be restricted by the computer to a maximum of three months prior to today’s date. If this happens, correct the date in the Include From field
  • enter the correct date in the Include From field (you will already have made a note of the correct date to enter in the Include From field)
  • select [OK]. You will be taken back to the History screen
  • select [OK]. You will be taken back to the appropriate Details screen. For example, if you have corrected the Hours Worked signal you will be returned to the Work Details screen
  • go back to the appropriate signal in the Change screen and change the date in the Start Date field back to the correct date
  • enter the correct date in the Include From field again, if necessary
  • select [OK]. You will be taken back to the History screen
  • select [OK]. You will be taken back to the appropriate Details screen

    • If no further corrections are required, select [OK]. You will be taken to the Amend Finish screen. Go to .
    • If further corrections are required to any other change of circumstances effective dates, repeat .

For example: if the hours worked start date is 06/05/2007 and the date in the Include From field is 06/08/2007. To change the date in the Include From field to 06/05/2007

  • use Function AMEND APPLICATION and go to the hours worked History screen
  • change the date in the Start Date field to 07-01-2007 and change the date in the Include From field to 06-01-2007
  • select [OK]
  • select [OK]
  • go back to the hours worked History screen and change the date in Start Date field back to 06/01/2007
  • enter the correct date in the Include From field, if necessary.

Step 11

In the Amend Finish screen

  • enter the date of the correction in the Received Date field. If you do not know what that date is, use today’s date
  • select ‘Paper’ from the Source drop-down menu

Note: If the correction has been notified through a Contact Centre (CC), select ‘Telephone’ from the Source drop-down menu.

  • select ‘NTC error’ or ‘Applicant error’, as appropriate from the Reason drop-down menu
  • select [OK]

Note: The changes you have made in this function will not be applied until you complete the Amend Finish screen and select [OK].

* If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays

* the changes you are making will re-finalise the claim, follow the guidance in [TCM0042260](https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0042260) before making any changes

then, if you can make the change  


* select [OK] on the message
* go to .

* If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays

* you will not be able to make the change because the PY actual income is required, follow the guidance in [TCM0042260](https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0042260) before making any changes

then, if you can make the change  


* select [OK] on the message
* go to .

* If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays

* the changes you are making will re-finalise the claim
* select [Cancel]. You will be taken to the Amend Application Details screen
* select [Cancel]
* when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
* pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on [TCM0320260](https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0320260) 
* take no further action

* If none of the messages display, go to .

Step 12

Use Function MAINTAIN HOUSEHOLD NOTES to record the action you have taken. For example:

  • from step 2, enter ‘TCMZ Cannot apply change as customer failed to provide information’
  • from step 10, enter ‘TCMZ Restriction removed for Hours Worked for clmt 1, notified on 30/10/04’

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

  • then
  • go to .

Step 13

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