Changes: payments: WTC - changes to nomination / payment frequency (AG)
Working Tax Credit (WTC) is paid direct to the customer who has the main job.
In a joint claim, the payment of WTC will automatically go to the customer with the main job. If their responsibility changes they can request that the nomination be changed to their partner, providing we have the partner’s bank account details.
The customer can choose to receive their WTC every week or every four weeks. If the claim is pre-award and the customer hasn’t chosen the frequency of WTC, it will always be paid four-weekly.
The childcare element of WTC will always be paid directly with the payments of CTC to the person who is nominated to receive the payment of CTC.
To deal with changing a Working Tax Credit nomination and/or the frequency of WTC payments, consider steps 1 to 8.
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 whether the case needs to be sent to a specialist team
- If the change you have been notified of is to the WTC nomination and the frequency of WTC payments, go to Step 2.
- If the change you have been notified of is to the WTC nomination only, go to Step 2.
- If the change you have been notified of is to the frequency of WTC payments only, go to Step 5.
In the Payment Details - Applicant 1 screen, check whether there are bank account details held for the customer who has been nominated to receive the WTC payments
- If there are no bank account details held, go to Step 3.
- If the bank account details have changed
- If there are bank account details held, go to Step 4.
Contact the customer
- to obtain the missing bank account details
- to clarify any details that aren’t clear
Follow the guidance in TCM0094080
Use Function AMEND APPLICATION, choosing the Change Of Circumstances option and go to the Payments Details - Applicant 1 screen, if you aren’t already there
- select the Applicant 1 or Applicant 2 checkbox in the WTC Recipient field, as appropriate to indicate which customer has been nominated to receive the WTC payments
Note: When you select a checkbox in this field, the entry in the other customer’s checkbox will automatically be removed. Any change made in the WTC Recipient field in the Payment Details - Applicant 1 screen will be automatically carried over to the Payment Details - Applicant 2 screen
If the customer requires a change to 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 payment frequency and has made 1 change or less within the last 12 month
- in the payment details - Applicant 1 screen select the requested frequency, that is weekly or four-weekly, from the Frequency drop down menu in the WTC Recipient field
- select [OK]. You will be taken to the Amend Finish screen
- go to Step 6.
In 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’
- 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
- If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays
- 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.
Use Function MAINTAIN HOUSEHOLD NOTES to record the actions you have taken
- go to Step 8.
Close the document on DMS. For how to do this, use TCM1000037.