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HMRC internal manual

Tax Credits Manual

Changes - work (left job): Left only job, not starting new job

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 have 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 has more than one job.

Required information

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

  • end date of old job.

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 / Data Security Team for advice.

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Step 1

If you are dealing with a four-week run-on referral from a Contact Centre or a paper change of circumstances, go to Step 2.

If you are dealing with a reply from a customer in response to our enquiry for further information, go to Step 2.

If you are dealing with any other reason, go to Step 2.

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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 have got the following details

  • date the old job ended
  • if the customer has confirmed they are now in receipt of Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or Pension Credit
    • type of benefit
    • start date of the benefit.

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 Step 5.

If you have not got all the details, go to Step 3.

If the details are conflicting, go to Step 3.

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Step 3

Check PAYE/SA for customer end date.

If you are able to obtain the end date, go to Step 5.

If you are unable to obtain the end date, go to Step 4.

Step 4

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

If you contact the customer and obtain the missing information, go to Step 5.

If you contact the customer but they cannot provide the missing information, follow the guidance in TCM0036150.

If you cannot contact the customer, follow the guidance in TCM0036150.

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Step 5

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 6.

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Step 6

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

If the claim has been rejected or terminated

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

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 either an individual of Pension Credit Qualifying Age (PCQA) or customers who are claiming for more than two children, as these will be allowed to claim tax credits.  Following the guidance in TCM0044080 will take you through the necessary steps.

If the claim has not been rejected or terminated, go to Step 8.

If the claim ceased, go to Step 7.

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Step 7

Check if the claim ceased because the customer has claimed Universal Credit (UC). For how to do this, use TCM1000013.

If the claim ceased because the customer has claimed UC, go to Step 9.

If the claim ceased for any other reason

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

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 either an individual of Pension Credit Qualifying Age (PCQA) or customers who are claiming for more than two children, as these will be allowed to claim tax credits.  Following the guidance in TCM0044080 will take you through the necessary steps.

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Step 8

Check if the customer 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 Step 9.

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

  • end the job using the actual end date of their job and remove the number of jobs. For how to do this, use TCM1000354
  • if the customer has advised they are now in receipt of Income Support, income based Jobseekers Allowance, income related Employment and Support Allowance or Pension Credit
    • enter the benefit start date after the four-week-run-on date.  For how to do this, use TCM1000093
  • go to Step 11.

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Step 9

Check whether the claim has been ceased or terminated because of one of the four-week run-on exceptions. For how to do this, use TCM1000101 and TCM1000353.

Consider entitlement to the four-week run-on. For how to do this, use TCM1000397.

If there are no exceptions within the four-week run-on period, go to Step 10.

If there are exceptions within the four-week run-on period

  • follow guidance in TCM0228040
  • take no further action.

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Step 10

If the change occurred more than 28 days ago

  • calculate the end date of the four-week run-on
  • make a note of the new effective date
  • end the job from the new effective date you noted earlier and remove the number of jobs. For how to do this, use TCM1000354
    Note: Do not complete the ‘Amend Finish’ screen at this point.
  • if the customer has advised they are now in receipt of Income Support, income based Jobseekers Allowance, income related Employment and Support Allowance or Pension Credit
    • enter the benefit start date after the four-week-run-on date. For how to do this, use TCM1000093
  • go to Step 11.

If the change occurred 28 days ago or less

  • calculate the end date of the four-week run-on
    Note: This is 28 days from and including the day after the date the old job ended.
  • make a note of the new effective date
  • add Household Note NE01 from TCM0164020. For how to do this, use TCM1000001
  • BF the case to the new effective date
  • take no further action.
    Note: If the new effective date is today’s date enter the date on the NTC system and go to Step 11.

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Step 11

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

If the customer is still entitled to claim childcare costs, go to Step 12.

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 Step 12.

If the customer is not entitled to claim childcare costs and has a four-week run-on, go to Step 12.

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Step 12

If you are dealing with a joint claim and the household still qualifies for WTC

  • check that the WTC recipient is correct. For how to do this, use TCM1000485 
  • go to Step 13.

If you are dealing with a joint claim and the household no longer qualifies for WTC, go to Step 13.

If you are dealing with a single claim, go to Step 13.

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Step 13

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’re working) before you complete the ‘Amend Finish’ screen.

Note: Any changes you have 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 Step 14.

If a warning message did not display

  • update ‘Household Notes’ with the appropriate message. For how to do this, use TCM1000001
  • go to Step 14.

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Step 14

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 an electronic referral

  • delete from the database
  • take no further action.

If you have been working a piece of correspondence

  • close the document on DMS. For how to do this, use TCM1000037
  • take no further action.