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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Miscellaneous: C to D: Child Trust Fund - additional payments - referral received (AG)

To deal with a referral from Child Trust Fund Office (CTFO) regarding an additional CTF payment, consider Steps 1 to 9.

Step 1

When you receive a WAM referral from the Child Trust Fund Office (CTFO) on the Priority 1 Team, use Function VIEW APPLICATION to determine the additional entitlement date and the responsibility date

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]

    • If you are taken to the Select Application Version screen

    Note: This means that there is more than one claim for the customer. You need to select the claim appropriate to the Child Trust Fund (CTF) query you’re investigating

    • select the latest claim version
    • select [OK]. You will be taken to the Application Summary screen
    • go to .

    • If you are taken straight to the Application Summary screen, go to .
    • If the following message displays ‘No match found’

    • record that you have no trace of a claim to tax credits on the CTF Referral Form

    then

    • go to .

Note: If you receive the message ‘You are not authorised access to this record’, refer the case to the Secure Management Unit (SMU) to deal with the referral. Follow the guidance in TCM0068160.

Note: If the case has a specialist interest, such as Compliance, or is a complex case, you must contact the specialist area before taking any action.

Step 2

In the Application Summary screen

  • select ‘VH’ on the toolbar menu. You will be taken to the Applicant 1 screen
  • select ‘History’ on the toolbar menu
  • where any IS, JSA or Pension Credit interest displays, select the relevant IS, JSA or Pension Credit entry. You will be taken to the History screen

    • record the dates that display on the History screen, on the WAM referral form under ‘Additional Information’, noting IS, JSA or Pension Credit, as appropriate

    Note: Repeat the process for customer 2, if appropriate.

  • select ‘Ch’ on the toolbar menu. You will be taken to the Children screen
  • on the Children screen, select the name of the child you are investigating
  • check the child’s date of birth and record this information on the CTF Referral Form
  • record the date of the first Monday immediately following the child’s date of birth on the CTF Referral Form

Note: For Tax Credit Office (TCO) purposes, this is the assumed CTF date.

  • select ‘History’ on the toolbar menu
  • select ‘Responsibility’ from the options available. You will be taken to the History screen. This screen shows periods of responsibility for the child selected

    • record the dates that display on the History screen, on the WAM referral form under ‘Additional Information’
  • go to .

Step 3

On the History screen

  • If the child’s date of birth is between 01/09/2002 and 30/03/2003, any period of responsibility is acceptable during the 2003-2004 award year

    • If there is any IS, JSA or Pension Credit during the 2003-2004 year, the child is eligible for additional payments, go to .
    • If there isn’t any IS, JSA or Pension Credit during the 2003-2004 year, go to .
  • If the CTF date is after 05/04/2003, check if it’s covered by a period of responsibility. This is determined by checking the periods in the Responsibility Include From and End date fields. Record this information on the CTF Referral Form

    • If the CTF date isn’t contained in a period where the household was responsible for the child, go to .
    • If the CTF date is contained in a period where the household was responsible for the child

    • If there is any IS, JSA or Pension Credit during the 2003-2004 year, the child is eligible for additional payments, go to .
    • If there isn’t any IS, JSA or Pension Credit during the 2003-2004 year, go to .

    Note: If no End date is present in the Responsibility fields, this means that the responsibility is ongoing.

    Note: If you are investigating more than one child on the same claim, you will have to check each child individually.

Step 4

Use Function VIEW AWARD

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]

    • If you are taken to the Select Award screen

    • select the latest Final Act for the award year you are considering entitlement for
    • select [OK]. You will be taken to the Award Summary screen
    • go to .

    • If you are taken straight to the Award Summary screen, go to .

Step 5

In the Award Summary screen

  • select Child Tax Credit in the Tax Credit Type field
  • select [View Calculation]. You will be taken to the View Calculation screen
  • make a note of the Household Income figure

then

  • go to .

Step 6

Using the relevant page on TCM0132420.

  • Is the income figure below the CTC only income threshold for the tax year in question?

    • If yes, the customer is eligible for additional payments. You must enter ‘Yes’ in the relevant part of the referral form as detailed in .
    • If no, the customer isn’t eligible for additional payments. You must enter ‘No’ in the relevant part of the referral form as detailed in .
  • go to .

Step 7

Use Function VIEW HOUSEHOLD NOTES

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘All’ checkbox
  • select [OK]. You will be taken to the View Household Notes screen
  • select any entries that have details of any manual payments made. You can identify these by selecting ‘Payments’ from the Category drop down menu
  • select [Details]. You will be taken to the View Note Details screen
  • in the View Note Details screen, record details of any period of arrears that have been made to the customer

Note: Where a cashcheque has been issued for an earlier period, check whether the CTF date falls in that period.

* If the CTF date falls in the period of arrears, this means that there was entitlement to tax credits at the CTF date. In order to determine whether there is entitlement to an additional CTF payment 

* assume the CTF date is equal to the first date of entitlement on the computer. Don’t change the CTF date you recorded earlier but, in order to establish entitlement to the additional CTF payment, check the details on the first date of entitlement on the computer 

Note: This is because it’s deemed to be the same as that for the actual CTF date. In order to do this, you need to determine whether maximum CTC was payable on the first date of entitlement.  


* cancel out of this function and go back to , but this time use the first date of the tax credits entitlement as the CTF date.

* If the CTF date doesn’t fall in the period of arrears, go to .

Step 8

Send the CTF Referral Form using the WAM referral to the CTFO.

  • Please provide the following details

    • App 1 NINO
    • App 1 forename
    • App 1 surname
    • App 2 NINO
    • App 2 forename
    • App 2 surname
    • Child forename
    • Child surname
    • Child date of birth
    • TCO assumed Start Date for CTF (Monday following child’s date of birth)
    • CTFO actual Start Date
    • (for TCO ONLY) Eligible for Additional Payments (yes or no, as appropriate)
    • additional information (if applicable)

then

  • go to .

Step 9

Use Function MAINTAIN HOUSEHOLD NOTES to record 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.