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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - work (general A-M): Changes - work (Introduction)

This section, along with TCM0050000, provides guidance on what you should do when a customer informs you of

  • a change to their work details - a work history change

or

  • a relevant change to their benefit details - a benefit history change.

Work history changes

A relevant work history change is a change to the information that was given on the original claim for Working Tax Credit (WTC) which could affect the amount of tax credits paid to the customer. For example, if a customer has ended their employment and has started another job, this is a work history change.

A work history change must be made on the computer, resulting in a change to the amount of tax credits paid.

A work history change relating to a pre-award claim can’t be made until the claim has been awarded. When the claim becomes post award an entry will be created on the Unprocessed Change Of Circs work list. Using this work list as a prompt, the cases will then be reviewed and the actual amendments made to the claim.

It’s important that you determine what type of amendment is required to ensure that the customer receives the correct amount of tax credits at the right time.

A customer may request that their claim for tax credits be calculated using their current year (CY) income. Tax credits will initially be calculated using the previous year (PY) (or PY-1) income. This may not fully reflect their present or new circumstances and may result in an over or underpayment at the end of the year. For tax credits to be calculated using the CY income, follow the guidance in TCM0044060.

Benefit history changes

A relevant benefit history change is a change to the information that was given on the original or a previous claim for tax credits that could affect the amount of tax credits paid to the customer. For example, if a customer has ended their employment and has started Income Support, this is a benefit history change.

A benefit history change must be made on the computer, resulting in a change to the amount of tax credits paid.

Note: Before making any changes, you must follow the guidance in TCM0042260.