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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Claims - work lists (VFs - 1 to 12): Verification Failures work list - Rule 5 - Child in current NTC award (post award)

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • you have the correct user roles to follow this guidance
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Reasons not to follow this guidance

You don’t need to follow this guidance if

  • the work list item is on a pre-award claim
  • the work list item isn’t a Rule 5 verification failure.

Background

This guidance must be followed when there is a Rule 5 ‘Child in a current award’ verification failure work list item on a post award claim.

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 dealing with a new Rule 5 ‘Verification Failure’ work list item on a post award claim, go to .

If you are dealing with an expired action date

  • check whether you can continue to process the work item. Follow the guidance in TCM0138020

then, if you can continue to process the work item

  • go to .

If you are dealing with a returned form TC656, TC656A or TC664

  • check whether you can continue to process the work item. Follow the guidance in TCM0138020
  • then, if you can continue to process the work item
  • go to .

If you are dealing with a returned form TC655 or TC655r

  • check whether you can continue to process the work item. Follow the guidance in TCM0138020

then, if you can continue to process the work item

  • go to .

If you are dealing with a reply from Technical Advice Line (TAL) about the main responsibility for a child or young person

  • check whether you can continue to process the work item. Follow the guidance in TCM0138020

then, if you can continue to process the work item

  • go to .

If you have been passed the case back from the Level 2 User or your manager, go to .

Step 2

Access function ‘Manage Verification Failures’ to make a note on form TC648 of the existing customer’s

  • name
  • address
  • NINO. For how to do this, use TCM1000250.

If you’re able to note down the details of the existing customer, go to .

If you’re unable to note down the details of the existing customer because the ‘Investigate’ button is greyed out

  • transfer the case to the predetermined MU. For how to do this, use TCM1000023
  • update Household Notes with the message HC01 from TCM0160020. For how to do this, use TCM1000001
  • set the appropriate action date provided by your Technical Advice Line Liaison Officer (TALLO). For how to do this, use TCM1000008
  • take no further action.

Step 3

In function ‘Manage Verification Failures’, make a note on form TC648 of the failed customer’s

  • name
  • address
  • NINO
  • phone numbers
  • Child Benefit reference number. For how to do this, use TCM1000250

then

  • go to .

Step 4

Access function ‘View Application’ to make a note on the form TC648 of the existing customer’s

  • phone number
  • Child Benefit reference number. For how to do this, use TCM1000249

then

  • go to .

Step 5

Note: Where it is clear there is no overlap or the customer is included in another claim, the verification failure can be resolved without making any enquiries.

Check whether you can continue to process the work item. Follow the guidance in TCM0138020

then, if you can continue to process the work item

  • compare the existing customer’s address and the failed customer’s address you noted on form TC648.

If the addresses are different, you can’t be sure it’s the same child or young person, go to .

If the addresses are the same, then it’s the same child or young person, go to .

Step 6

Compare the child reference numbers for the child or young person for both households as they are shown on the Child Benefit claim. For how to do this, use TCM1000248.

If the child reference numbers are the same, then it’s the same child or young person, go to .

If you’re unable to trace the child’s reference number on the Child Benefit claim for either customer or both customers, you can’t be sure it’s the same child or young person, go to .

If the child reference numbers aren’t the same, then it’s not the same child or young person, go to .

Step 7

To help with the discussions with the customers

  • check and make a note of all the child’s responsibility start and whether there are any end dates for both customers. For how to do this, use TCM1000245
  • check and make a note of the effective date of the failed claim. For how to do this, use TCM1000218
  • check and make a note of the date the failed claim was received. For how to do this, use TCM1000246

then

  • phone each customer in turn to confirm the responsibility start dates and/or responsibility end dates for the child or young person and make a note on the form TC648 of their answers. Follow the guidance in TCM0094080.

Note: You should make a minimum of two attempts to phone the customer and also use the information on form TC656F to advise the customers about how they might determine the respective responsibility start or end dates.

If the failed customer tells you they included the child or young person in error, go to .

If during your phone conversations it’s established that responsibility for the child or young person ended in the existing customer’s household before it began in the failed customer’s household, go to .

If you’re unable to get the existing customer to agree their responsibility for the child or young person ended before the failed customer’s responsibility started, go to .

If you’re unable to contact either customer or both customers by phone, go to .

Step 8

Consider if it is appropriate to set the inhibit finalisation marker on any unfinalised award (s) for both the existing and failed customers.

If the annual declaration has been actioned, you cannot inhibit finalisation, go to .

If the annual declaration has not been actioned,

  • check the first specified date (1SD) for both the existing customer and failed customer. For how to do this, use TCM1000002
  • go to .

Step 9

If there is more than 8 weeks between today’s date and 1SD, you do not need to inhibit finalisation, go to .

If there is less than 8 weeks between today’s date and 1SD,

  • set the inhibit marker on any finalised award (s) for the both the existing customer and failed customer using the reason ‘Annual Declaration Review’. For how to do this, use TCM1000173
  • go to .

Note: The 8 week period stated above is a guideline, you may wish to consider setting the inhibit finalisation marker if your case could take longer than 8 weeks to complete.

Step 10

Send the following forms to obtain more information

  • complete form TC656 for the existing customer
  • complete form TC656A for the failed customer
  • enclose a return envelope with each set of forms
  • send the completed forms to the customers and also ensure you address them to their partner, if there is one
  • complete separate forms TC648 for each customer and write the existing customer’s name and NINO in the information space on the form to allow the two claims to be linked together when the forms are received back or the action dates have expired
  • update Household Notes with the appropriate message, either HC42 or HC43 from TCM0160020 on both customers’ claims. For how to do this, use TCM1000001
  • transfer the case to the BF MU. For how to do this, use TCM1000023
  • set an action date of 15 days in the future. For how to do this, use TCM1000008
  • take no further action.

Step 11

Check Household Notes to determine the reason why the action date was created. For how to do this, use TCM1000067.

If the reason for the action date is because forms TC656, TC656A, TC609, or TC664 have been issued but not returned, go to .

If the reason for the action date is because forms TC655 or TC655r have been issued but not returned, go to .

Step 12

Note: A customer must be given a minimum of 30 days and be sent at least two written requests to respond to our enquiries before we can take any final action.

If the initial 15-day action date has expired without a complete reply from either customer or both customers

  • complete a reminder form TC609 together with either a duplicate of the forms that were originally sent or form TC664 with the relevant questions on for the customer or customers who hasn’t or haven’t yet replied
  • enclose a return envelope with the forms or each set of forms
  • send the completed forms to the customer and also ensure you address them to their partner, if there is one
  • complete separate forms TC648 for each customer and write the existing customer’s name and NINO in the information space on the form to allow the two claims to be linked together when the forms are received back or the action date or dates have expired
  • update Household Notes with the message HC44 from TCM0160020 on the customer or customers claims you have issued the forms to. For how to do this, use TCM1000001
  • set an action date for a further 15 days in the future. For how to do this, use TCM1000008
  • take no further action.

If the further 15-day action date has expired and there hasn’t been a complete reply from either customer, go to .

If the further 15-day action date has expired and there has been a complete reply from the existing customer but not from the failed customer, go to .

If the further 15-day action date has expired and there has been a complete reply from the failed customer but not from the existing customer, go to .

Step 13

If you are dealing with a returned form and no decision has been made, go to .

If you are dealing with a returned form and a decision was made because of an expired BF date

  • update Household Notes with the message HC61 from TCM0160020. For how to do this, use TCM1000001
  • go to .

If you are dealing with a returned form and a decision was made after contacting the customer, go to .

Step 14

Consider the information you have received from the existing and failed customers and decide whether or not you’re sure it’s the same child or young person in both households.

If you’ve received a reply from only one customer

  • update Household Notes with the message HC45 from TCM0160020 for the customer you have received a reply from. For how to do this, use TCM1000001
  • wait until a reply is received from the other customer or the action date has expired, whichever is sooner
  • take no further action.

If you’ve now received a reply from both customers and you aren’t sure that it’s the same child or young person in both households, go to .

If you’ve now received a reply from both customers and you’re sure it’s the same child or young person in both households, go to .

Step 15

You need to be satisfied that the child or young person in the existing and failed households is the same person. To help you do this

  • complete form TC655 for both customers’ households using ‘Tab’ to enter the child’s or young person’s name and complete the ‘Official use’ boxes
  • enclose a return envelope with each form
  • send the completed forms to the customers and also ensure you address it to their partners, if relevant
  • update the separate forms TC648 you used earlier in the process for each customer
  • update Household Notes with the message HC46 from TCM0160020 on both customers claims. For how to do this, use TCM1000001
  • set an action date for 15 days in the future. For how to do this, use TCM1000008
  • take no further action.

Step 16

Note: A customer must be given a minimum of 30 days and be sent at least two written requests to respond to our enquiries before we can take any final action.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the initial 15-day action date has expired without a complete reply from either or both of the customers

  • complete reminder form TC655r for the customer or customers who hasn’t or haven’t yet replied
  • enclose a return envelope with the form
  • send the completed form to the customer and also ensure you address it to their partner, if relevant
  • update the separate forms TC648 you used earlier in the process for each customer
  • update Household Notes with the message HC47 from TCM0160020 on the customer or customers claims you have issued the form to. For how to do this, use TCM1000001
  • set an action date for a further 15 days in the future or some other appropriate period depending on the circumstances. For how to do this, use TCM1000008
  • take no further action.

If the further 15-day action date has expired and there is a genuine reason for one of the customers not replying

  • complete a further reminder form TC655r for the customer who has a genuine reason for not sending you the documents you requested
  • enclose a return envelope with the form
  • send the completed form to the customer and also ensure you address it to their partner, if relevant
  • update the separate forms TC648 you used earlier in the process for each customer
  • update Household Notes with the message HC47 from TCM0160020 for the customer you have issued the form to. For how to do this, use TCM1000001
  • set an action date for a further 15 days in the future or some other appropriate period depending on the circumstances. For how to do this, use TCM1000008
  • take no further action.

If the further 15-day action date has expired, there is no genuine reason for one of the customers not replying and no document has been received from either customer, go to .

If the further 15-day action date has expired, there is no genuine reason for one of the customers not replying and a document has been received from the existing customer but not from the failed customer, go to .

If the further 15 day action date has expired, there is no genuine reason for one of the customers not replying and a document has been received from the failed customer but not from the existing customer, go to .

Step 17

Note: For further information about responsibility for a child or young person, use TCM0114060.

Complete in all cases a Record of decision made on main responsibility (Word 36KB) form

  • consider the evidence provided and make a fair and reasonable decision about which customer has main responsibility for the child or young person.

Note: If you’re dealing with a case where the child lives abroad, consult your TALLO for advice (your TALLO may refer the case to TAL for further assistance).

If you’re able to decide who has main responsibility for the child or young person, go to .

If you’re unable to decide who has main responsibility for the child or young person, go to .

Step 18

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

After considering all the information available, if you decide that the child or young person’s care is so equally balanced between both customers that neither has main responsibility

  • consult your TALLO (who may refer the case to TAL) for advice on how to decide which customer has main responsibility for the child or young person

then, when you receive the advice from TAL

  • go to .

Step 19

Only one customer can have main responsibility for the child or young person.

If you decide that main responsibility for the child or young person is with the failed customer, go to .

If you decide that main responsibility for the child or young person is with the existing customer, go to .

If you decide that neither customer is responsible for the child or young person, go to .

Step 20

Note: Where there are competing claims for CTC, if the child or young person normally lives with both the existing and failed customers, irrespective of the hour/day ratio there is ongoing ‘shared care’ for that child or young person. We can not backdate child responsibility decisions when there is ongoing ‘shared care’.

Note: Where it has been established that a child or young person has moved from one household to another - that is, the child is no longer ’normally living’ with the original customer and is now ‘normally living’ with the new customer, this is a change of circumstances. Backdating can occur in these cases.

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

If you have evidence that the child or young person has moved from one household and will now permanently and solely live with the other household

  • calculate the date that responsibility for the child or young person will begin on the failed customer’s claim and end on the existing customer’s claim, For how to do this, use TCM1000083
  • make a note of the dates on the TC648
  • go to .

If there is ongoing ‘shared care’ because the child or young person normally lives with both the existing and failed customer

  • calculate the date that responsibility for the child or young person will begin on the failed customer’s claim and end on the existing customer’s claim, For how to do this, use TCM1000095
  • make a note of the dates on the TC648
  • go to .

Step 21

Make sure you are able to make the changes. Follow the guidance in TCM0042260

then, if you can make the changes

  • using the dates you have calculated, exclude the child or young person from the existing customer’s claim. For how to do this, use TCM1000171
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this, use TCM1000173
  • update Household Notes with the message HC49 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
  • using the date you have calculated, change the ‘responsibility start’ date and the ‘include from’ date for the child or young person on the failed customer’s claim. For how to do this, use TCM1000244
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the failed customer. For how to do this, use TCM1000173
  • update Household Notes with the message HC50 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
  • go to .

Step 22

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

Make sure you are able to make the changes. Follow the guidance in TCM0042260

then, if you can make the changes

  • exclude the child or young person from the failed customer’s claim on the day they were included in that claim. For how to do this, use TCM1000171
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the failed customer. For how to do this use TCM1000173
  • update Household Notes with the message HC49 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000001
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this use TCM1000173
  • update Household Notes with the message HC50 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
  • go to .

Step 23

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

Make sure you are able to make the changes. Follow the guidance in TCM0042260

then, if you can make the changes

  • exclude the child or young person from the failed customer’s claim on the day they were included in that claim For how to do this, use TCM1000171
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the failed customer. For how to do this use TCM1000173
  • update Household Notes with the message HC49 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000001
  • exclude the child or young person from the existing customer’s claim using an exclusion date the day before the child or young person was added to the failed customer’s claim. For how to do this, use TCM1000171
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
  • remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this use TCM1000173
  • update Household Notes with the message HC49 from TCM0160020 on both customers’ claims. For how to do this, use TCM1000001
  • go to .

Step 24

Issue the appropriate information letter to the customers

  • complete and send letter TC1027 to the customer whose claim you have just excluded the child or young person from
  • update Household Notes with the message HC52 from TCM0160020 on that customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
  • complete and send letter TC1062 to the customer whose claim you haven’t excluded the child or young person from
  • update Household Notes with the message HC53 from TCM0160020 on that customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
  • manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
  • go to .

Step 25

Manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247

  • update Household Notes with the message HC54 from TCM0160020 on the failed customers claim. For how to do this, use TCM1000001
  • go to .

Step 26

Prepare and send the documents to storage

  • place the completed ‘Record of decision made on main responsibility’ form with the casepapers for the customer who isn’t responsible for the child or young person
  • place any correspondence in the relevant casepapers for each customer
  • send the two sets of casepapers to storage in separate wallets. Follow the guidance in TCM0074140.