TCM0046080 - Changes; payments: CTC - changes to nomination / payment frequency

Background

Child Tax Credit (CTC) is paid direct to the main carer, caring for a child or young person.

In a joint claim, couples need to nominate the main carer to receive any payment of CTC. If the main carer’s responsibility changes they may request that the nomination be changed to their partner.

The customer choose to receive their CTC every week or every four weeks. If you are checking a claim to check what frequency the CTC is being paid and the computer doesn’t show it, then the frequency is always four-weekly.

The childcare element of Working Tax Credit (WTC) will always be paid directly, with payments of CTC, to the person who is nominated to receive the payment of CTC.

Guidance

When changing a CTC nomination to the main carer and/or frequency of CTC payment, consider steps 1 to 8.

Step 1

Before making any changes to the claim, you must follow the guidance in TCM0042260. This is to confirm if the changes can be made or if the case needs to be sent to a specialist team

then, if the changes can be made, and you are notified of a change to CTC nomination to the main carer and/or frequency of CTC payment

  • use Function AMEND APPLICATION (Change Of Circumstances option) and go to the Payments Details - Applicant 1 screen. If
    • the change is to the CTC nomination and frequency of payment, go to Step 2.
    • the change is to the CTC frequency only, go to Step 5.

Step 2

Check whether there are bank details held for the customer who has been nominated to receive the CTC payments. If

  • there are no bank details, go to Step 3.
  • the bank details have changed, amend the details. Follow the guidance in TCM0046020, go to Step 4.
  • there are bank details, go to Step 4.

Step 3

Contact the customer for any missing details or to clarify any points that aren’t clear. Follow the guidance in TCM0094080. If

  • you obtain the bank account details or are able to clarify the details, go to Step 4.
  • you are unable to obtain the bank details or unable to clarify the details, go to Step 7.

Step 4

In the Main Carer field

  • select either the Applicant 1 or Applicant 2 checkbox to indicate which customer has been nominated to receive the CTC payments
    Note: When you select a checkbox in this field, the entry in the ‘other’ Applicant checkbox will automatically be removed. Any change made within the Main Carer field in the Payment Details - Applicant 1 screen will be automatically carried over to the Payment Details - Applicant 2 screen.
  • If
    • a change to the CTC frequency has also been notified, go to Step 5.
    • there are no other changes to apply, go to Step 6.

Step 5

If the customer requires a change to CTC payment frequency and has had more than one change in payment frequency in the past 12 month or household notes show NC61 (changed pay frequency in the last 12 months), NC65 (changed pay frequency citing financial hardship) or NC66 (been advised to write in to make changes) send the papers to the Risky Coc Team

Note: A change in legislation in Jan 2011 allows TCO the discretion not to allow a change under suspicious circumstances but this is not stopping all changes. If the customer has made one change but the customer claims financial hardship the change will be allowed however the customer is informed that we are unlikely to allow a further change. If a further change is required by the customer they will be advised to write in.

If the customer requires a change to CTC payment frequency and has made 1 change or less within the last 12 month

  • select the requested frequency from the Frequency drop down menu, in the Main Carer field
  • select [OK]. You will be taken to the Amend Finish screen
  • go to Step 6.

Step 6

On the Amend Finish screen

  • enter the date the notification of the change was received
  • enter the source of the change, for example ‘paper’
  • enter the reason for the change as ‘Change of Circumstance’
    and then
  • select [OK]. The computer will now automatically accept the change of circumstances and will apply the change at the effective date
    Follow the guidance in TCM0042040.
    Note: The changes you have made in this function will not be applied until you complete the Amend Finish screen.
    Note: The Received Date field will always default to today’s date. You must enter the date the change of circumstances was notified, not the date the change is actioned. If there is more than one notification date than the earliest notification date must be entered.
    • 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 before making any changes
        then, if you can make the change - select [OK] on the message - go to Step 7.
      • 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 before making any changes
        then, if you can make the change - select [OK] on the message - go to Step 7.
      • 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 - take no further action.
      • If none of the messages display, go to Step 7.

Step 7

Use Function MAINTAIN HOUSEHOLD NOTES and record a note of your actions

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

Step 8

Close the document on DMS. For how to do this, use TCM1000037.