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HMRC internal manual

Tax Credits Manual

Changes - work (general A-M): Employment started (Info)

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

Where the customer or their partner is

  • currently in receipt of Child Tax Credit (CTC) and they start work for the first time
  • were previously in receipt of Income Support (IS), Jobseeker’s Allowance (income based) (JSA(IB)) or Employment and Support Allowance (income-related) (ESA(IR)), in receipt of Child Tax Credit (CTC) and start work
  • the Fast Track Team (by way of referral) will usually deal with the claim from Jobcentre Plus.
    For more information, follow the Fast Track guidance in TCM0136000.

However, if the customer contacts TCO directly, continue to follow this guidance

Before you action the new work details, you must

  • check if there is any IS, JSA, ESA or PC history
  • where the customer informs you that they were recently in receipt of IS, JSA, ESA or PC, you must enter an end date for this before proceeding with the work change. Failure to do so may result in an incorrect award.
    Note: Start or end dates for ESA claims can’t be earlier than 27/10/2008.

Where the customer informs you they have started a new employment, you must establish if they received any income during the PY period. The claim form currently doesn’t ask for this information and any undisclosed income would affect the amount of the award.

Note: Where the customer has started employment for the first time, you must update the Place of Work History Details. Follow the guidance in TCM0050100.

Note: From 6 April 2012, if a customer tells us within a month about a change of circumstances that increases the maximum rate of tax credits they are entitled to, their award can be amended from the date of the change. For changes notified after one month their award can only be amended one month prior to the date the change was notified.

Note: If a change is notified that does not alter or decreases the maximum rate of tax credits the customer is entitled to, it will be applied from the date of the change.

This guidance covers the backdating process for when you are notified of the change

  • before 6 April 2012 within three months of the customer starting the new job
  • before 6 April 2012 more than three months after the customer started the new job
  • on or after 6 April 2012 within one month of the customer starting the new job
  • on or after 6 April 2012 more than one month after the customer started the new job.

By following this guidance, you will ensure that the customer receives the correct payment.

Note: A customer who doesn’t have a NINO may be allocated a Temporary Tax Credit Reference (TTCR) to allow their tax credits claim to be processed.

Where the customer has been allocated a TTCR, for example ‘00123456’, you must not enter the PAYE reference number in the Employers Reference field. Instead, you must update the new PAYE reference number in either Application Notes or Function MAINTAIN HOUSEHOLD NOTES.

There is an Action Guide for this subject, select TCM0048140 to access it