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HMRC internal manual

Tax Credits Manual

Claims - work lists (VFs - 1 to 12): Verification Failures work list - Rule 12 - Residency criteria not met (post award) (AG)

To deal with a post award verification failure where the residency criteria hasn’t been met, consider steps 1 to 33.

Step 1

Use Function MAINTAIN WORKLIST

  • select the Verification Failures work list from the drop down list for the Worklist Type field
  • select the office or unit you want from the drop down list for the Management Unit (MU) field, if the one you want isn’t already displayed in this field. The screen will be redisplayed with the entries currently on the work list.

Step 2

Select the entry in the work list you want to work, then

  • select [Details]. You will be taken to the Worklist Entry Details screen where more details of the selected work item will be displayed.

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Step 3

Return to the Maintain Worklist screen and

  • select ‘File’ on the toolbar menu
  • select ‘Next Function’ from the options available. You will be taken to the Select Next Function screen.

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Step 4

On the Select Next Function screen

  • select Function MANAGE VERIFICATION FAILURES from the options available. You will be taken to this function.

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Step 5

Has the claim been made by one or two customers?

If it’s a single claim by one customer, go to Step 6.

If it’s a joint claim by two customers, go to Step 8.

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Step 6

Use Function MANAGE VERIFICATION FAILURES to check which residency rules the customer has failed verification on. To do this

  • select the record you want to investigate
  • select [Investigate]. You will be taken to the Investigate Verification Failure screen
  • check which residency rules the customer has failed verification on
    Note: Check Household Notes to check if the claim has already been referred to the Persons From Abroad (PFA) Team or International Team. If the claim has been referred to the
    • PFA Team, fax the TC648 with details of the information received (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • International Team, send the TC648 with details of the information received (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
      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.
      then
      • If the customer has said they are subject to immigration control, go to Step 10.
      • If any other circumstances apply, go to Step 7.

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Step 7

Use Function VIEW APPLICATION and check what the customer has stated about

  • where they are living
    and/or
  • where they are working
    Note: You only need to check those details that the customer has failed residency on.
    • If the customer has only failed residency because they aren’t living and/or working in the UK, but it’s obvious that they do, then you can accept that the customer lives/works in the UK. For example, the customer states that they live in Preston and their address is Preston, Lancashire, then you can accept that the customer lives in the UK, go to Step 23.
    • If the customer has started work and these are the first work details entered on the computer, enter the work history details. Follow the guidance in TCM0050100 and then go to Step 25.
    • If any other circumstances apply, go to Step 10.

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Step 8

Use Function VIEW APPLICATION and check what each customer has stated about

  • their nationality
  • being subject to immigration control
  • where they are living
    and, if applicable
  • where they are working.

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Step 9

If

  • customer 1 and customer 2 have confirmed that they aren’t UK nationals, go to Step 10.
  • nationality is the only residency rule failure and only one customer has stated that they aren’t a UK national, go to Step 22.
  • one customer or both customers have only failed residency because they aren’t living and/or working in the UK, but it’s obvious that they both do, then you can accept that both customers live/work in the UK. For example, the failed customer states that they live in Preston and their address is Preston, Lancashire, then you can accept that the customer lives in the UK, go to Step 23.
  • one customer or both customers have started working and these are the first work details entered on the computer
    • enter the work history details. Follow the guidance in TCM0050100
      then
    • go to Step 25
  • one customer or both customers have stated that they don’t live and/or work in the UK or only one of the customers has stated that they aren’t a UK national, but one customer or both customers have stated that they don’t live and/or work in the UK
    • use Function CAPTURE APPLICATION and make a note that the nationality rule has been satisfied in the Application Notes field
      Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152040.
      then
    • go to Step 10.

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Step 10

Note: If both customers in a claim that includes two customers have failed one or more of the residency rules, you must ask the relevant questions detailed below for each customer at the same time.

In Function VIEW APPLICATION go to the Additional Information screen to check if a contact phone number is available for the customer. You will do this by

  • accessing Function VIEW APPLICATION
  • clicking on ‘Navigation’ on the toolbar menu
    then
  • selecting, where applicable, ‘Applicant 1 Additional Information’ or ‘Applicant 2 Additional Information’ from the options available. You will be taken to the Additional Information screen
    • If there is a phone number, go to Step 11.
    • If there isn’t a phone number, go to Step 12.

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Step 11

Phone the customer and ask them to confirm, where appropriate,

  • their nationality
  • what country they live in and, if they don’t live in the UK, whether they satisfy one of the exemption criteria
  • what country they work in, and if they don’t work in the UK, whether they satisfy one of the exemption criteria. When phoning the customer. follow the guidance in TCM0094080
    Note: The exemption criteria can be found in TCM0128000. For the types of questions to ask, refer to form TC654.
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the details.
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
    • If you are unable to contact the customer by phone, go to Step 12.
    • If the customer
      • doesn’t live and/or work in the UK and doesn’t satisfy any of the exemption criteria, go to Step 32.
      • now satisfies all the residency criteria (they are a UK national, live in the UK and, if applicable, work in the UK), go to Step 23.
      • satisfies the living in the UK and/or working in the UK residency criteria but they and their partner, if applicable, don’t satisfy the UK national criteria, go to Step 21.
      • is a cross-border case, go to Step 26.
      • is a Crown Servant serving overseas, go to Step 28.
      • is temporarily absent from the UK, go to Step 29.

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Step 12

Send form TC654 to the customer to ask them to confirm, where appropriate,

  • their nationality
  • what country they live in and, if they don’t live in the UK, whether they satisfy one of the exemption criteria
  • what country they work in and, if they don’t work in the UK, whether they satisfy one of the exemption criteria
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the issue of form TC654 and the date it was issued.
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

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Step 13

Use Function MAINTAIN WORKLIST and set an Action Date for 15 days in the future. Make sure that you select the ‘Retained’ checkbox after entering the Action Date.

  • If the information you need is supplied, go to Step 20.
  • If the information you need isn’t supplied by the Action Date, go to Step 14.

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Step 14

Use Function MAINTAIN WORKLIST to

  • select the Verification Failures work list from the drop down list for the Worklist Type field
  • select the office or unit you want from the drop down list for the Management Unit field, if the one you want isn’t already displayed in this field. The screen will be displayed with the entries currently on the work list
  • filter the selected work list so that only those with an Action Date of today or earlier are listed.

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Step 15

For each entry on the filtered list, check the notes on the system to check if a reminder has been issued.

  • If a reminder hasn’t been issued, go to Step 16.
  • If a reminder has been issued, go to Step 32.

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Step 16

In Function VIEW APPLICATION go to the Additional Information screen to check if a contact phone number is available for the customer. You will do this by

  • accessing Function VIEW APPLICATION
  • selecting ‘Navigation’ on the toolbar menu
  • selecting, where applicable, ‘Applicant 1 Additional Information’ or ‘Applicant 2 Additional Information’ from the options available. You will be taken to the Additional Information screen
    • If there is a phone number, go to Step 17.
    • If there isn’t a phone number, go to Step 18.

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Step 17

Phone the customer and ask them to confirm, where appropriate,

  • their nationality
  • what country they live in and, if they don’t live in the UK, whether they satisfy one of the exemption criteria
  • what country they work in and, if they don’t work in the UK, whether they satisfy one of the exemption criteria. When phoning the customer, follow the guidance in TCM0094080
    Note: The exemption criteria can be found in TCM0128000. For the types of questions to ask, refer to form TC654.
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the information received from the customer.
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
    • If you are unable to contact the customer by phone, go to Step 18.
    • If the customer
      • doesn’t live and/or work in the UK, and doesn’t satisfy any of the exemption criteria, go to Step 31.
      • now satisfies all the residency criteria (they are a UK national, live in the UK and, if applicable, work in the UK), go to Step 23.
      • satisfies the living and/or working in the UK residency criteria, but they and their partner, if applicable, don’t satisfy the UK national criteria, go to Step 21.
      • is a cross-border case, go to Step 26.
      • is a Crown Servant serving overseas, go to Step 28.
      • is temporarily absent from the UK, go to Step 29.

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Step 18

Send a manual reminder form TC609 (choosing option 2) to the customer

  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the issue of form TC609 and the date it was issued.
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

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Step 19

Use Function MAINTAIN WORKLIST to amend the Action Date to 15 days after the date the reminder is issued. Make sure that you select the ‘Retained’ checkbox after entering the Action Date.

  • If the information you need is supplied, go to Step 20.
  • If the information you need isn’t supplied by the Action Date, go to Step 32.

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Step 20

If the customer

  • Doesn’t live and/or work in the UK, and doesn’t satisfy any of the exemption criteria, go to Step 32.
  • now satisfies all the residency criteria (they are a UK national, live in the UK and, if applicable, work in the UK), go to Step 23.
  • satisfies the living and/or working in the UK residency criteria, but they and their partner, if applicable, don’t satisfy the UK national criteria, go to Step 21.
  • is a cross-border case, go to Step 26.
  • is a Crown Servant serving overseas, go to Step 28.
  • is temporarily absent from the UK, go to Step 29.
    Note: The exemption criteria can be found in TCM0128000.

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Step 21

Check if the customer or, if applicable, their partner is an EEA national. The EEA countries, including those countries that joined the EEA on 1 May 2004 can be found in TCM0128000. If the customer or, if applicable, their partner

  • is an EEA national and they satisfy all the other residency criteria, go to Step 22
  • isn’t an EEA national and they satisfy all the other residency criteria, go to Step 27.

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Step 22

Use Function MANAGE VERIFICATION FAILURES, if you aren’t already there, and

  • select the appropriate verification failure
  • select [Change Verification]. You will be taken to the Change Of Status Reason screen
  • enter the reason for the verification change - for example, ‘Customer’s partner is a UK national’
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the action you have taken
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
  • take no further action.

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Step 23

Use Function MANAGE VERIFICATION FAILURES

  • select ‘Navigate’ on the toolbar menu
  • select ‘Amend Application Correction’ from the options available. You will be taken to Function AMEND APPLICATION.

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Step 24

In Function AMEND APPLICATION, amend the applicable residency information. To do this,

  • go to the Applicant Details screen for the failed customer
  • select ‘History’ from the toolbar menu
  • select ‘Normally Live’ from the options available. The History screen will display
  • note the start date of the period of History
  • select the period of History
  • select [New]. The New screen will display
  • enter the start date you noted in the Start Date field
  • tab down and when the message ‘3 months restriction applied to include from date. Check if correct’ displays, select [OK]
  • change the date in the Include From field to match the date in the Start Date field
  • enter ‘UK’ in the Country field
  • select [OK]. You will be taken back to the History screen
  • select [OK]. You will be taken back to the Applicant Details screen
  • select [OK]. You will be taken to the Amend Finish screen
  • enter the date of notification of the correction in the Received Date field
    Note: If the date is unknown, use today’s date.
  • select ‘Worklist’ from the Source drop down menu
  • select ‘Applicant error’ from the Reason drop down menu
  • select [OK].

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Step 25

In the Manage Verification Failures screen

  • select the Rule 12 verification failure
  • select [Change Verification]. You will be taken to the Change of Status Reason screen
  • enter the reason why you are over-riding the verification failure in the Reason field
  • select [OK]. The verification failure will be resolved
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the action you have taken
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
  • take no further action.

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Step 26

Complete a form TC648 with details of the information you have received from the customer and the reason for the referral

  • send the completed form to the International Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    then
  • transfer the entry on the Verification Failures work list to the International Team’s Management Unit (MU). Use TCM0322460 for the correct MU number. Take no further action.
    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.

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Step 27

Complete a form TC648 with details of the information you have received from the customer and the reason for the referral.

  • If the customer isn’t an EEA national
    • fax the completed form to the PFA Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • transfer the entry on the Verification Failures work list to the PFA Team’s MU. Use TCM0322460 for the correct MU number
      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.
    • take no further action.
  • If the customer is an A2 national
    • send the completed form to the International Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • transfer the entry on the Verification Failures work list to the International Team MU. Use TCM0322460 for the correct MU number
      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.
    • take no further action.

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Step 28

Complete form TC648 with details of the information you have received from the customer and the reason for the referral

  • send the completed form to the International Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • transfer the entry on the Verification Failures work list to the International Team’s MU. Use TCM0322460 for the correct MU number
    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.
  • take no further action.

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Step 29

If you have established that the period of temporary absence means that

  • there is eligibility for tax credits on or after 06/04/2003, go to Step 30.
  • there is no eligibility for tax credits on or after 06/04/2003, go to Step 32.

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Step 30

Use Function MANAGE VERIFICATION FAILURES and change the Decision Status from ‘Application Suspended’ to ‘Proceed With Application’

  • select [OK]. You will be taken to the Change Of Status Reason screen
  • enter the reason for changing the status on the claim - for example, ‘Customer temporarily absent from UK - eligibility ends on ??/??/????’ (date the customer’s eligibility ends)
    Note: This process allows the claim to be passed for payment, but the item remains on the work list.
    then
  • send the Residency Explanation form TC691 to the customer
  • set an Action Date on the work list for the day immediately before the date that the customer’s eligibility ends.

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Step 31

End the household from the date that the customer’s eligibility ends. Follow the relevant Changes guidance. If the claim has been made by

  • one customer, take no further action.
  • two customers, both of whom are temporarily or permanently absent from the UK, take no further action.
  • two customers, only one of whom is temporarily or permanently absent from the UK, go to Step 33.

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Step 32

Reject the claim. Follow the guidance in TCM0070100. If the claim has been made by

  • one customer, take no further action.
  • two customers and both of them aren’t eligible for tax credits, take no further action.
  • two customers and only one of them isn’t eligible for tax credits, go to Step 33.

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Step 33

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 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.

Invite a fresh claim from the customer who

  • isn’t temporarily absent from the UK and/or is still eligible for tax credits. Follow the guidance in TCM0044080
    Note: If you have rejected the claim, send the Residency Explanation form TC691 to the customer at the same time as you invite a fresh claim.
    then
  • use Function MAINTAIN HOUSEHOLD NOTES to make a note of the action you have taken.
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.