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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Claims: capture (D-K): Intelligent Manual Capture - Disability element (Info)

For this task you will need to have access to the Child Benefit Online (CBOL) and Access to DWP Data computer systems.

The following guidance is to help you correctly capture the disability element.

Note: From 08/04/13 Personal Independence Payment (PIP) will be introduced as a replacement for DLA for customers of working age (16-64 years of age). PIP will be made of two elements consisting of daily living and mobility and two levels of rates which are standard or enhanced. Customers under 16 and over 65 years old will remain on DLA.

Note: For tax credits purposes, the Highest Rate Care Component of DLA is the same as the Enhanced rate of daily living component of PIP, and will allow the customer to qualify for the Severe Disability element, so long as the other qualifying conditions are met. There is also an Enhanced mobility component of PIP but this does not allow the customer to qualify for the extra element.

Note: For tax credits purposes, the current low and middle rates of DLA (whether care or mobility) will be either standard daily living or standard mobility component of PIP, and will allow the customer to qualify for the Disability element so long as the other qualifying conditions are met. When a customer states on the TC600 claim form that they, or any of their children, are disabled or in receipt of Disability Living Allowance (DLA) or Personal Independence Payment (PIP) you must check to check which disability element they may be entitled to.

Note: From 08/04/13 Armed Forces Independence Payment (AFIP) will be introduced to replace Disability Living Allowance (DLA) for members and ex-members of HM Forces (Army, Navy, Air Force etc). A customer entitled to AFIP will receive the benefit for life, at the equivalent Enhanced rate of Personal Independence Payment (PIP) or higher rate of DLA, and will entitle a tax credit customer to the severe disability element of Working Tax Credit. The Service Personnel and Veterans Agency (SPVA), a division of the Ministry of Defence, will administer AFIP. The Department for Work and Pensions are responsible for making AFIP payments and maintaining the awards.

If you find that the customer or any of their children are

  • in receipt of the Highest Care Component of DLA or the Enhanced rate of daily living component of PIP or AFIP, they will be entitled to the Severe Disability element.
  • disabled but not in receipt of the Highest Care Component of DLA or the Enhanced rate of daily living component of PIP or AFIP, they will only be entitled to the Standard Disability element.

There is an Action Guide for this subject, select TCM0064220 to access it