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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - work (left job): Left main job, has other jobs, started new main job outside seven days (Info)

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

A customer may inform you that they have left their main job, they will have other jobs already recorded on the computer, and they have started a new main job, outside seven days. The job they have left, the new job that they have started and any continuing jobs already recorded on the computer may be either employed or self-employed. The start date for the new main job occurred before today’s date.

Note: If the customer has left their only main employment and has no other job details on the computer, follow the guidance in TCM0052160.

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

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 claimant is entitled to, it will be applied from the date of the change.

By following the relevant Steps, you will ensure that the customer receives the correct payment.

Where the customer has informed you of several changes that have occurred at different times, you must apply the changes in sequence, starting with the oldest change first.

Note: When entering new employment details, the date for the previous employment is currently being overridden with the processing date - minus one day. To ensure that the correct details are updated, when ending the employment details you will need to carry out the actions in the Amend Finish screen, and then re-enter the new employment details and then carry out the actions in the Amend Finish screen again. This will apply where you are

  • entering new employment details or replacing existing employment details on the Main Employment Details screen

or

  • replacing a main employment details with existing employment details
  • entering new Self employment details or replacing existing self-employment details on the Self-Employment Details screen.

This action will produce more than one award notice. Where there is a 50+ start date present, let the signal continue and don’t enter a 50+ end date, this will be covered in a separate instruction.

Note: The 50+ element ceased on 5 April 2012.

If Working Tax Credit (WTC) entitlement ends due to employment changes, for example total weekly hours worked have dropped below 16 or employment ends, the customer may be entitled to Income Support (IS), income-based Jobseeker’s Allowance (JSA) or income-related ESA. They will continue to receive WTC for four weeks starting from the day after entitlement ended. The customer will receive a letter explaining this.

If the change of circumstance is a

  • referral by a Contact Centre

    • the 28th day will have already been calculated
    • TCO will BF the case, if necessary, until this date becomes effective
    • the change will then be applied.
  • physical change of circumstances

    • TCO will calculate the 28th day
    • where the effective date is after today’s date, the case will be placed in BF until this date becomes effective
    • the change will then be applied.

Note: If there has been a further change of circumstances within the 28-day period that has resulted in the claim being ceased or terminated, the customer’s entitlement will only be extended up to and including the date the claim has ceased or been terminated.

You must check whether there is continuing eligibility to tax credits during the period between the end of the old job and the start of the new job. To do this, follow the guidance about eligibility in TCM0114000.

There is an Action Guide for this subject, select TCM0052080 to access it