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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, started new main job outside seven days

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • check the Unprocessed Change of Circs work list for any outstanding entries and make a note of any information you require to clear the work item. Follow the guidance in TCM0054060 to clear the item on the Unprocessed Change of Circs work list only
    • Note: If the Unprocessed Change of Circumstances work list item is the same as the change you’ve been notified of, delete the work list item and continue with this guidance.
  • you have the correct user roles to follow this guidance.
  • a change can be made. Follow the guidance in TCM0042260
  • you are in the correct MU. Use TCM0322460.

Reasons not to follow this guidance

You do not need to follow this guidance if

  • the customer is not starting a new main job
  • the customer is starting a new main job within seven days.

Required information

Obtain the following information from the source (for example, customer, employer)

  • end date of old job
  • number of paid hours in old job
  • start date of new job
  • number of paid hours in new job
  • employer’s reference number (if appropriate)
  • new employer’s name
  • new employer’s address
  • Unique Taxpayer Reference (UTR) number (if the new job is self-employed).

Guidance

Note: when sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.

Step 1

If you are unable to trace the customer

  • take no further action

If you are dealing with a four-week run-on referral from a Contact Centre or a paper change of circumstances, go to .

If you are dealing with a reply from a customer in response to our enquiry for further information, go to .

If you are dealing with an expired BF because the customer has not replied to our enquiry

  • use the information supplied by the customer or the date the customer notified us of the change as the date the customer’s job ended
  • go to .

If you are dealing with any other reason, go to .

Step 2

Note: From 6 April 2012, couples with children will be entitled to working tax credit if they are both aged 16 or over and

  • they work at least 24 hours 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 person works at least 16 hours a week and the other person can not 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 person works at least 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one person works at least 16 hours a week and that person is aged 60 or over.

Check you’ve got the following details

  • date the old job ended
  • total number of paid hours in old job and any other remaining jobs
  • total number of paid hours for other remaining jobs
  • start date of new main job
  • total number of paid hours in new main job and any other remaining jobs
  • new employer’s reference number
  • payroll reference (if available)
  • employer’s name and address
  • Unique Taxpayer Reference (UTR), if self-employed.

If the correct end date and four week run on has already been applied

  • enter the benefit start date after the four-week-run-on date.  For how to do this, use TCM1000093

 

  • update Household Notes with the appropriate message.  For how to do this, use TCM1000001
  • take no further action

If you have got all the details, go to .

If you have not got all the details, go to .

If you have conflicting details, go to .

Step 3

Check PAYE/SA for customer end date.

If you are able to obtain end date, go to .

If you are unable to obtain the end date, go to .

Step 4

Phone the customer to obtain the end date. Follow the guidance in TCM0094080

If you contact the customer and they provide the missing information, go to .

If you are not able to contact the customer by phone

  • send form TC664 requesting the missing information
  • set a clerical date for 30 days in the future
    • Note: When calculating 30 days in the future, do not include postal strikes and public bank holidays in the calculation

go to .

If you contact the customer by phone but they are not able to provide the information

  • send form TC664 requesting the missing information
  • set a clerical date for 30 days in the future
    • Note: When calculating 30 days in the future, do not include postal strikes and public bank holidays in the calculation.
  • go to .

Step 5

If the claim is pre-award

  • update Application Notes with the message NC83 or NC85 from TCM0164020. For how to do this, use TCM1000028
  • take no further action.

If the claim is post award

  • update Household Notes with the message NC83 or NC85 from TCM0164020 For how to do this, use TCM1000001
  • take no further action.

Step 6

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.

Check the status of the claim. For how to do this, use TCM1000025

If the claim is pre award

  • enter the details of the change on the free format screen. For how to do this, use TCM1000036
  • update Application Notes with the action you have taken. For how to do this, use TCM1000028
  • take no further action.

If the claim is post award, go to .

Step 7

Check if the customer is entitled to a four-week run-on. For how to do this, use TCM1000397

If the customer is entitled to the four-week run-on, go to .

If the customer is not entitled to the four-week run-on

  • enter the date the customer has provided for the old hours end date, in the hours end date field
  • end the job using the date the customer has provided. For how to do this, use TCM1000354
  • go to .

Step 8

Check the status of the award. For how to do this, use TCM1000101

If the claim has been ceased or terminated because of one of the four-week run-on exceptions

  • check for exception changes within the four-week run-on period. For how to do this, use TCM1000353
  • update Household Notes with the action you have taken. For how to do this, use TCM1000001.

If the claim has been rejected, ceased or terminated and the customer’s new circumstances mean they may now qualify for tax credits

Note: Claims made on or after 6 April 2012 may be backdated up to 31 days.

Note: Claims made prior to 6 April 2012 may be backdated up to 93 days.

Note: Before you can invite a fresh claim, you must check whether the household is in a closed postcode area to prevent new claims being issued to working age households in these areas.  The exception to this is for those households that contain an individual of Pension Credit Qualifying Age (PCQA), as these will be allowed to claim tax credits.  Following the guidance in TCM0044080 will take you through the necessary steps

  • invite the customer to make a fresh claim. Follow the guidance in TCM0044080
  • take no further action.

If the claim has not been rejected, ceased or terminated, go to .

Step 9

Calculate the end date of the four-week run-on

If the customer’s new job start date is within 28 days of the end date of the old job,go to .

If the customer’s new job start date is after 28 days of the end date of the old job

  • calculate the end date of the four-week run-on
    • Note: This is 28 days from and including the day after the date the job ended
  • make a note of the new effective date
  • enter the new effective end date you noted earlier, in the hours worked end date field
  • end the job from the new effective end date you noted earlier. For how to do this, use TCM1000354
  • go to .

Step 10

If the change occurred more than 28 days ago

  • enter the new effective end date you noted earlier, in the hours worked end date field
  • end the job from the new effective end date you noted earlier. For how to do this, use TCM1000354
  • go to .

If the change occurred 28 days ago or less

  • check for any other relevant changes and action
  • follow the relevant Changes guidance
  • update Household Notes with the action you have taken. For how to do this, use TCM1000001
  • delete any worklist items you have worked, if appropriate
  • Bf until the 29t h day after the change occurred
  • on expiry go to .

Step 11

Consider the customers entitlement to the childcare element. For how to do this, use TCM0112100.

If the customer continues to be entitled to claim childcare costs, go to .

If the customer is no longer entitled to claim childcare costs

  • end the childcare costs on using the effective end date you noted earlier. For how to do this, use TCM1000163
    • Note: Where an earlier childcare end date is already present and this date is before the new effective date, do not change the childcare end date.
  • go to .

If the customer was not entitled to claim childcare costs and has a four-week run-on go to .

Step 12

Check the new job start date.

If the new job started within 28 days of the old job end date

  • enter the new main job details from the day after the new effective date you noted earlier. For how to do this, use TCM1000355
  • go to .

If the new job start date is more than 28 days after the old job end date, go to .

Step 13

If the customer’s entitlement to tax credits ends at the end of the four-week run-on

Note: Before you can invite a fresh claim, you must check whether the household is in a closed postcode area to prevent new claims being issued to working age households in these areas.  The exception to this is for those households that contain an individual of Pension Credit Qualifying Age (PCQA), as these will be allowed to claim tax credits.  Following the guidance in TCM0044080 will take you through the necessary steps

Note: this is entitlement to both Working Tax Credit and Child Tax Credit

  • invite them to make a fresh claim. Follow the guidance in TCM0044080
  • go to .

If the customer’s entitlement to tax credits continues

  • enter the new main job details. For how to do this, use TCM1000355
  • go to .

Step 14

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.

If the start date of the new job occurred more than one month before today’s date and the customer notified us of the change within one month,

  • the change can be backdated more than one month as the customer notified the tax credits office within one month of the change or the change does not result in an increase to the customer’s maximum tax credit award
  • amend the include from date for the new hours, in worked hours history, to the same date as the start date showing for the new hours. For how to do this, use TCM1000364
  • go to .

If the start date of the new job occurred more than one month before today’s date and the customer failed to notify us of the change within one month go to .

If the start date of the new job occurred within one month of today’s date

  • apply any other changes you have been notified. For how to do this, follow the relevant Changes guidance
  • go to .

Step 15

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.

Consider whether the change in hours will increase the maximum tax credits award (that is, before any income changes are applied). For how to do this, use TCM1000347

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.

If the change in hours results in an increase in the maximum tax credits award (before any income changes)

  • amend the include from date to one month prior to the date you have been notified of the change. For how to do this, use TCM1000364
  • apply any other changes you have been notified. Follow the relevant Changes guidance
  • go to .

If the change in hours does not result in an increase in the maximum tax credits award (before any income changes)

  • the change can be backdated more than one month as the customer notified the tax credits office within one month of the change or the change does not result in an increase to the customer’s maximum tax credit award
  • amend the include from date for the new hours, in worked hours history, to the same date as the start date showing for the new hours. For how to do this, use TCM1000364
  • apply any other changes you have been notified. Follow the relevant Changes guidance
  • go to .

Step 16

Complete amend finish screen. For how to do this, use TCM1000032

Note: If the work change applies to more than one tax year, you must complete your action for each tax year affected, once you have followed the guidance in TCM0042260.

Note: Make sure you have applied all changes (including any unprocessed changes you are working) before you complete the ‘Amend Finish’ screen.

Note: Any changes made will not be applied until you complete the ‘Amend Finish’ screen.

If a warning message displayed and you had to pass the case to a Level 2 user or your manager, take no further action.

If a warning message displayed and you were able to make the change

  • update Household Notes with the appropriate message. For how to do this, use TCM1000001
  • go to .

If a warning message did not display

  • update Household Notes with the appropriate message. For how to do this, use TCM1000001
  • go to .

Step 17

If you have been working from a work list

  • delete the work list item. For how to do this, use TCM1000160
  • take no further action.

If you have been working a WAM referral

  • put the WAM referral in confidential waste
  • take no further action.

If you have been working a piece of correspondence

  • send the documents to storage, follow the guidance in TCM0074140
  • take no further action.