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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Miscellaneous: C to D: Child Trust Fund - clerical referral process

Version 2.0

Changes to previous version -amended guidance.

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0220120 or TCM0220080
  • 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 and 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.

Background

This guidance must be followed to send a referral to Child Trust Fund (CTF) to ensure that a CTF additional payment is made, where appropriate. It must be followed in the following circumstances when an automatic prompt isn’t sent by the tax credits computer

  • cases where the ‘Complex Case’ signal has been set
  • manual payment cases that aren’t complex cases
  • cases backdated ‘off system’
  • household breakdown cases that have been actioned clerically.

You must establish whether the CTF qualifying criteria has been met and whether a clerical referral is required and must be followed each time you are dealing with an off system tax credits award.

Note: The Child Trust Funds Act 2004 has been amended so that a child born on or after 3 January 2011 will not be eligible for a CTF. To be eligible for a CTF a child has to

  • be born after 01/09/2002 but before 03/01/2011
  • live in the UK
  • not be subject to immigration control or have their immigration control lifted by 02/04/2011

and either

  • have child benefit paid for them on or before 03/01/2011

or

  • be in care by 02/04/2011.

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

Check if the award has been renewed manually off system. For how to do this, use TCM1000153.

If the award has been renewed manually, go to .

If you are dealing with a complex case that has been renewed by the tax credits computer but the payments are being made manually off system, go to .

If you aren’t dealing with a complex case that has been renewed by the tax credits computer, go to .

Step 2

Check if the award status is finalised actual. For how to do this, use TCM1000101.

Note: This will be shown as ‘Fin Act’.

If the award status is finalised actual, go to .

If the award status isn’t finalised actual

  • set a BF date of the 2nd Specified Date (2SD)
  • go to .

Step 3

Check the award status on a monthly basis to check if it has changed to finalised actual. For how to do this, use TCM1000101.

Note: This will be shown as ‘Fin Act’.

If the award status has changed to finalised actual by 2SD, go to .

If the award status hasn’t changed to finalised actual by 2SD, go to .

Step 4

If you have come to this guidance from TCM0220120 or TCM0220080, go to .

If you haven’t come to this guidance from TCM0220120 or TCM0220080, go to .

Step 5

Check the information you’ve already obtained from SEES to check if

  • there’s a child with a date of birth on or after 01/09/2002 but before 03/01/2011 on the award that has been renewed

and

  • the customer has had responsibility for the relevant child at any time during the year that has just been finalised.

If both conditions apply, go to .

If both conditions don’t apply, go to .

Step 6

Check the information you have already obtained from SEES to check if the CTC entitlement for the relevant child for the year that has just been finalised is greater than zero.

If the CTC entitlement is greater than zero

  • check if either customer has been in receipt of IS, JSA or ESA at any point during the year you have finalised. For how to do this, use TCM1000401

then

  • go to .

If the CTC entitlement is zero, go to .

Step 7

Check if there is a child with a date of birth on or after 01/09/2002 but before 03/01/2011 on the award that has been renewed. For how to do this, use TCM1000400.

If there is a child with a date of birth on or after 01/09/2002 but before 03/01/2011 on the award that has been renewed, go to .

If there isn’t a child with a date of birth on or after 01/09/2002 but before 03/01/2011 on the award that has been renewed, go to .

Step 8

Check if the child with a date of birth on or after 01/09/2002 but before 03/01/2011 has been automatically matched or manually verified on the tax credits computer. For how to do this, use TCM1000297.

If the child has been automatically matched or manually verified on the tax credits computer, go to .

If the child hasn’t been automatically matched or manually verified on the tax credits computer, go to .

Step 9

Check if the customer has had responsibility for the relevant child at any time during the year that has just been finalised. For how to do this, use TCM1000245.

If the customer has had responsibility for the child at any time during the year that has just been finalised, go to .

If the customer hasn’t had responsibility for the child at any time during the year that has just been finalised, go to .

Step 10

Check if the CTC entitlement for the relevant child for the year that has just been finalised is greater than zero (no taper has been applied to the CTC). For how to do this, use TCM1000402.

If the CTC entitlement is greater than zero, go to .

If the CTC entitlement is zero, go to .

Step 11

Check for the customer’s household income. For how to do this, use TCM1000060

  • check if the household income is or isn’t greater than the CTC threshold. Follow the guidance in TCM0132420
  • check if either customer has been in receipt of IS, JSA or ESA at any point during the year you have finalised. For how to do this, use TCM1000401.

If the household income isn’t greater than the CTC threshold (initial taper start point - CTC only), go to .

If the household income is greater than the CTC threshold (initial taper start point - CTC only), go to .

If either customer has been in receipt of IS, JSA or ESA at any point during the year you have finalised, go to .

Step 12

Complete the Child Trust Fund (CTF) clerical referral pro-forma (Word 41KB)

  • email the completed form to Technical Advice Line (TAL) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: A separate referral is required for each relevant child.

Note: If there is more than one award renewed manually off system for the relevant year you must only send the details once, but a Household Note must be included on all awards for that year. If this is a household breakdown case, the Household Note must be included on the award with the child on it.

  • take no further action.

Step 13

If the child is verified, go back to .

If the child isn’t verified but there are other qualifying children

  • follow the guidance in TCM0078160 
  • go back to .

If the child isn’t verified and there aren’t any other qualifying children

  • follow the guidance in TCM0078160 
  • go to .

Step 14

Update Household Notes with the message XC02 from TCM0176020. For how to do this, use TCM1000001

Note: If there is more than one award renewed manually off system for the relevant year you must only send the details once, but a Household Note must be included on all awards for that year. If this is a household breakdown case, the Household Note must be included on the award with the child on it.