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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 12 - Residency criteria not met (pre-award)

Version 2.0

Changes to previous version - amended guidance. References to EEA and RTR changed to International in steps 2, 23 to 24, 26, 28 to 33.

Checklist

Before you follow this guidance make sure

  • you have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • you are in the correct MU. Use TCM0322460 for the correct MU number
  • you have access to the National Insurance Recording System (NIRS)
  • you know how to use NIRS to check for the customer’s nationality.

Reasons not to follow this guidance

You don’t need to follow this guidance if

  • the claim has been awarded
  • the claim has been withdrawn.

Background

The Rule 12 pre-award residency verification failure MU is populated when the customer tells us on their tax credits claim form any combination of the following

  • they are subject to immigration control
  • they live outside the United Kingdom (UK)
  • they work outside the UK.

Different specialist teams will work the Rule 12 verification failure depending on the nationality of the customers and what caused the Rule 12 verification failure.

Note: Although a UK national is also an EEA national, for customers who are UK nationals follow the UK national route in this guidance.

Note: Some customers are neither a UK national nor an EEA national. In this guidance they are referred to as Rest of the World nationals.

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

Access the Verification Failures work list. For how to do this, use TCM1000004 

  • access function ‘Manage Verification Failures’ to check and make a note on form TC648 of the following information

    • whether the claim is from a single customer or is a joint claim
    • whether there is also a Rule 1 verification failure

    then

    • check whether the decision status is ‘Application Suspended’. For how to do this, use TCM1000107 

If the decision status is ‘Application Suspended’, go to .

If the decision status is anything else

  • the Rule 12 verification failure is a post award Rule 12 verification failure
  • transfer the post award Rule 12 verification failure to the post award Rule 12 VF Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • take no further action.

Step 2

Check Application Notes for any entries that will help you to determine what action to take next. For how to do this, use TCM1000108.

If the work list item needs transferring to the Persons From Abroad (PFA) Team or International Team

  • update Application Notes with the message HD04. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure work list item you have selected to the appropriate PFA or International Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • take no further action.

If the work list item doesn’t need transferring to the PFA Team or International Team, go to .

Step 3

Check whether the Rule 12 verification failure was caused because

  • all the customers shown on the tax credits computer aren’t UK nationals
  • any customer lives outside the UK
  • any customer works outside the UK. For how to do this, use TCM1000091 

then

  • make a note of your findings on form TC648

Note: If you don’t know what caused the Rule 12 verification failure, speak to your Technical Advice Line Liaison Officer (TALLO) for advice.

If the claim is a single claim, go to .

If the claim is a joint claim, go to .

Step 4

Use NIRS to obtain the customer’s nationality and make a note of your findings on form TC648.

If you obtain the customer’s nationality from NIRS, go to .

If you don’t obtain the customer’s nationality from NIRS, go to .

Step 5

Phone the customer to check their nationality. Follow the guidance in TCM0094080 

  • update the notes you have made on form TC648 with the action you have taken and the customer’s reply, if you are able to contact them by phone.

If you are able to obtain the customer’s nationality, go to .

If you aren’t able to obtain the customer’s nationality, go to .

Step 6

Use the information you’ve obtained from the tax credits computer.

If the customer has indicated they aren’t a UK national, go to .

If the customer has indicated they are a UK national, go to .

Step 7

Use the information you’ve obtained from NIRS or the customer.

If the customer is a UK national, go to .

If the customer is an EEA national, go to .

If the customer is a Rest of the World national, go to .

Step 8

Check whether the Rule 12 verification failure was caused by an obvious mistake. For how to do this, use TCM1000138.

If the only cause of the Rule 12 verification failure was an obvious mistake, go to .

If the Rule 12 verification failure was caused by any other reason or combination of reasons, go to .

Step 9

Use the information you’ve obtained from the tax credits computer.

If there is also a Rule 1 verification failure, go to .

If there isn’t also a Rule 1 verification failure, go to .

Step 10

Use the information you’ve obtained from the tax credits computer.

If the customer has indicated they aren’t a UK national, go to .

If the customer has indicated they are a UK national, go to .

Step 11

Use the information you’ve obtained from the tax credits computer.

If the customer has indicated they aren’t a UK national, go to .

If the customer has indicated they are a UK national, go to .

Step 12

Use NIRS to obtain the customer’s nationality and make a note of your findings on form TC648.

If you obtain both customers’ nationalities from NIRS, go to .

If you don’t obtain both customers’ nationalities from NIRS, go to .

Step 13

Phone the customer whose nationality you have been unable to obtain from NIRS, to check their nationality. Follow the guidance in TCM0094080 

  • update the notes you have made on form TC648 with the action you have taken and the customer’s reply, if you are able to contact them by phone.

If you are able to obtain the customer’s nationality, go to .

If you are unable to obtain the customer’s nationality, go to .

Step 14

Use the information you’ve obtained from the tax credits computer.

If both customers have indicated they aren’t UK nationals, go to .

If only one customer has indicated they aren’t a UK national, go to .

If neither customer has indicated they aren’t UK nationals, go to .

Step 15

Use the information you’ve obtained from NIRS or the customer.

If both customers are UK nationals, go to .

If only one customer is a UK national, go to .

If neither customer is a UK national, go to .

Step 16

Check whether the Rule 12 verification failure was caused by an obvious mistake. For how to do this, use TCM1000138.

If the only cause of the Rule 12 verification failure was an obvious mistake, go to .

If the Rule 12 verification failure was caused by any other reason or combination of reasons, go to .

Step 17

Use the information you’ve obtained from the tax credits computer.

If there is also a Rule 1 verification failure, go to .

If there isn’t also a Rule 1 verification failure, go to .

Step 18

Use the information you have obtained from the tax credits computer.

If both customers have indicated they aren’t UK nationals, go to .

If only one customer has indicated they aren’t a UK national, go to .

If both customers have indicated they are UK nationals, go to .

Step 19

Use the information you’ve obtained from NIRS or the customer.

If both customers are EEA nationals, go to .

If both customers are Rest of the World nationals, go to .

If one customer is a UK national and the other is an EEA national, go to .

If one customer is a UK national and the other is a Rest of the World national, go to .

If one customer is an EEA national and the other is a Rest of the World national, go to .

Step 20

Use the information you’ve obtained from NIRS or the customer.

If both customers are EEA nationals, go to .

If both customers are Rest of the World nationals, go to .

If one customer is a UK national and the other is an EEA national, go to .

If one customer is a UK national and the other is a Rest of the World national, go to .

If one customer is an EEA national and the other is a Rest of the World national, go to .

Step 21

Check whether you are able to process the work item. Follow the guidance in TCM0138020.

If you are able to process the work item, using the notes you have made on the form TC648

  • correct the customer’s details on the tax credits computer. For how to do this, use TCM1000092 

Note: You must access function ‘Capture Application’ from the ‘Manage Verification Failures’ screen.

  • update Application Notes with the message HD01 from TCM0160020. For how to do this, use TCM1000028 
  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • transfer the Rule 1 verification failure to the Rule 1 IN MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • take no further action.

Step 22

Check whether you are able to process the work item. Follow the guidance in TCM0504100

If you are able to process the work item, using the notes you have made on the form TC648

  • correct the customer’s details on the tax credits computer. For how to do this, use TCM1000092 

Note: You must access function ‘Capture Application’ from the ‘Manage Verification Failures’ screen.

  • update Application Notes with the message HD01 from TCM0160020. For how to do this, use TCM1000028 
  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 23

This case will be transferred to the International Team

  • update Application Notes with the messages HD05 from TCM0160020 and II35 from TCM0160040. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the EEA International Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 24

This case will be transferred to the International Team

  • update Application Notes with the message HD05 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 25

This case will be transferred to the PFA Team

  • update Application Notes with the message HD05 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the PFA Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 26

This case will be transferred to the International Team

  • update Application Notes with the message HD08 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 27

This case will be transferred to the PFA Team

  • update Application Notes with the message HD07 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the PFA Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 28

This case will be transferred to the International Team

  • update Application Notes with the messages HD07 from TCM0160020 and II35 from TCM0160040. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you have made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 29

This case will be transferred to the International Team

  • update Application Notes with the message HD09 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 30

This case will be transferred to the International Team

  • update Application Notes with the messages HD09 from TCM0160020 and II35 from TCM0160040. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 31

This case will be transferred to the International Team

  • update Application Notes with the message HD07 from TCM0160020. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 32

This case will be transferred to the International Team

  • update Application Notes with the messages HD07 from TCM0160020 and II35 from TCM0160040. For how to do this, use TCM1000028 
  • transfer the Rule 12 verification failure to the International Team Inbox MU. Your manager will be able to provide you with the correct MU number. For how to do this, use TCM1000023 
  • use the notes you’ve made on form TC648.

If you have phoned the customer, go to .

If you haven’t phoned the customer

  • send the completed form TC648 to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 33

Send the form TC648 to the PFA Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

  • take no further action.

Step 34

Send the form TC648 to the International Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

  • take no further action.

Step 35

Send the form TC648 to the International Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .