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HMRC internal manual

Tax Credits Manual

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

A customer may inform you that they have left their main job and started another new main job, within seven days and they have one or more other jobs already recorded on the computer. The jobs they left, started or are already recorded on the computer could have been either in employment or self-employment. The start date for the new 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 TCM0052200.

A tax credits 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.

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.

Any change of circumstances you make must be applied, one at a time. 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.

You must consider whether the total weekly hours will increase the maximum tax credits award. That is, before any income reduction is applied.

An increase will occur when the customer is

  • in a single claim and is responsible for at least one qualifying child or young person and the total weekly hours increase from below 16 hours to 16 hours or more and there is no other job that qualifies the customer for WTC
  • not responsible for any qualifying children and the total weekly hours a customer works increases from below 30 hours to 30 hours or more.
  • the weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • the weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

For couples with children

  • responsible for at least one qualifying child or young person and

If the claim was made before 6 April 2012

  • one person’s total weekly hours increase from below 16 hours to 16 hours or more.
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

If the claim was made on or after 6 April 2012

  • their hours increase from below 24 hours to 24 hours or more a week between them, with one person working at least 16 hours a week. If only one person works, that person must be working at least 24 hours a week, or
  • one persons weekly hours increase from below 16 hours a week to 16 hours a week or more and the other person can’t work because they are

    • incapacitated (in receipt of certain benefits because of a disability or ill health), or
    • an inpatient in hospital, or
    • in prison either on remand or serving a custodial sentence, or
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

Where the total number of hours before and after the change qualify the customer to WTC and the gap is less than seven days, the customer will be treated as continuing work through the gap with their ‘old’ hours.

To check the new job start date is within seven days, count seven days from the day after the ‘old’ job ended.

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, then re-enter the new employment details and 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 in the Main Employment Details section
  • are replacing main employment details with existing employment details
  • are entering new self-employment details or replacing existing self-employment details on the Self Employment Details section.

This action will produce more than one award notice.

If WTC entitlement ends due to employment changes, for example total hours worked have dropped below 16 or employment ends, the customer may be entitled to Income Support (IS) or income-based Jobseeker’s Allowance (JSA). 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 terminated.

Where there is a 50+ Start Date signal present, you must let the signal continue. You must not enter a 50+ End Date until further notice.

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

There is an Action Guide for this subject, select TCM0052120 to access it