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HMRC internal manual

Tax Credits Manual

Miscellaneous (E to O): Fast Track (IS, JSA, ESA) - new child claims

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’re 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

  • you are dealing with a Fast Track WTC claim.

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Background

A TC600 claim form will always be accompanied by a tax credits Fast Track form (Appendix 44) completed by Jobcentre Plus or the Department for Social Development (DSD).

You’ll already know which of the two separate Fast Track instructions you need to follow when you receive the tax credits claim form and Fast Track form.

Universal Credit

To support the expansion of Universal Credit (UC), The Department of Work and Pensions (DWP) are undertaking a phased rollout approach using postcodes. This means that new claims for Tax Credit will no longer be accepted in certain parts of the country.

As part of this Geographic Step Closure (GSC) all new Tax Credit claims will be checked to determine whether the customer(s) is/are living in a postcode area which is closed off to new claims. Once identified, these claims will be rejected and HMRC will signpost the customer(s) towards DWP to claim Universal Credit. The exception to this is if the customer (or in the case of a joint claim, one of the customers) is recognised as being of Pension Credit Qualifying Age (PCQA). Business rules will identify these customers and their claim will be accepted.

Note: From 6 April 2017, an additional exception has been introduced to allow any customer with more than 2 children to claim tax credits despite living in closed postcode areas.

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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.

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Step 1

If you are processing a new Fast Track claim, go to Step 2.

If you are dealing with returned correspondence or an expired BF date for an existing claim, go to Step 8.

If the two-day BF date period waiting for a decision on an existing claim has expired, go to Step 11.

If you are dealing with returned correspondence for the Fast Track claim, go to Step 13.

If you are processing the claim following action by the Persons From Abroad Team Fast Track officer, go to Step 13.

If Compliance has emailed you to state they have dealt with your referral, go to Step 14.

If you have received a reply to a ‘Blocking check stencil’, go to Step 14.

If you are checking if a decision has been made on the Fast Track claim, go to Step 14.

If you wrote to the customer for information about the Fast Track claim and the BF date has expired, go to Step 15.

If the 48-hour BF date period to check if a payment schedule has been set up has expired, go to Step 16.

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Step 2

Check if the Fast Track new child processing rules are satisfied. For how to do this, use TCM1000075.

If the Fast Track new child processing rules are satisfied, go to Step 4.

If the Fast Track new child processing rules aren’t satisfied, go to Step 3.

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Step 3

Separate the TC600 claim form from the Appendix 44

  • send the Appendix 44 to storage. Follow the guidance in TCM0074140
  • send the TC600 claim form to the Netherton Processing Centre for Rapid Data Capture (RDC)
  • take no further action.

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Step 4

Check if there is already a tax credits claim for either or both of the customers. For how to do this, use TCM1000076.

If there is already a tax credits claim for either customer or both customers, go to Step 5.

If there is not already a tax credits claim for either customer or both customers, go to Step 12.

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Step 5

Check the status of the existing claim. For how to do this, use TCM1000025.

If the status of the existing claim is ‘Award Issued’, ‘Terminated’, ‘Ceased’ or ‘Rejected’, go to Step 6.

If the status of the existing claim is ‘Awaiting Award’, ‘Partially Captured’ or ‘Logged’, go to Step 10.

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Step 6

Check if the existing claim includes an award period that will overlap the start date of the Fast Track claim you have now received. For how to do this, use TCM1000077.

If the award period overlaps the start date of the Fast Track claim you have now received, go to Step 7.

If the award period does not overlap the start date of the Fast Track claim you have now received, go to Step 12.

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Step 7

Check if the Fast Track claim you have now received is from the same customer household as the existing claim. For how to do this, use TCM1000078.

If the Fast Track claim is from the same customer household as the existing claim

  • complete form TC648 stating an award already exists for this customer household
  • send the form TC648, TC600 claim form and Appendix 44 to the relevant Change of Circumstances Team
  • update Household Notes with the message NU38 from TCM0164040. For how to do this, use TCM1000001
  • take no further action.

If the Fast Track claim isn’t from the same customer household as the existing claim, go to Step 8.

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Step 8

Check the Appendix 44 for the date the existing household ended.

Note: You may need to contact the relevant customer to obtain the household end date if it isn’t shown on the Appendix 44. To do this, follow the guidance in TCM0094080.

If you have been able to obtain the household end date from the Appendix 44 (or, where necessary, the customer), go to Step 9.

If you have not been able to obtain the household end date from the Appendix 44 (or, where necessary, the customer) even after writing to them

  • the household end date will be the day before the ‘effective date of claim’ shown on the Appendix 44
  • go to Step 11.

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Step 9

End the household on the existing claim. To do this

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Step 10

Check if the Fast Track claim you have now received is from the same customer household as the existing claim. For how to do this, use TCM1000078.

If the Fast Track claim is from the same customer household as the existing claim

  • capture the details from the Fast Track claim that are not already on the existing claim. Follow the relevant Changes guidance
    then
  • go to Step 11.

If the Fast Track claim is not from the same customer household as the existing claim, go to Step 11.

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Step 11

A decision on the existing claim must be made before you can capture the details on the Fast Track claim you have now received. For how to do this, use TCM1000025.

If the status of the existing claim is ‘Awaiting Award’, ‘Partially Captured’ or ‘Logged’,then a decision on the existing claim has not yet been made

  • save the casepapers in the BF run for two days
  • take no further action.

If the status of the existing claim is ‘Award Issued’, ‘Terminated’, ‘Ceased’ or ‘Rejected’, then a decision on the existing claim has been made, go back to Step 6.

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Step 12

Determine the effective date of the Fast Track claim you have received.

If you have ended the existing claim

  • the effective date of the claim will be either
    • the day after the previous household ended
      or
    • up to a maximum of 31 days prior to the effective date shown on the Appendix 44 beside the heading ‘effective date of claim’
  • use whichever is the most recent date
  • go to Step 13.

Note: Claims made prior to 6 April 2012 may be backdated up to 93 days.

If you have not ended an existing claim and there is a date shown on the Appendix 44 beside the heading ‘effective date of claim’

  • the effective date of the claim will be the date shown on the Appendix 44 beside the heading ‘effective date of claim’
  • go to Step 13.

If you have not ended an existing claim and there is no date shown on the Appendix 44 beside the heading ‘effective date of claim’

  • the effective date of the claim will be the date the claim form was signed or the date on the date received stamp on the Appendix 44, whichever is earlier
  • go to Step 13.

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Step 13

Capture the claim and/or new details on to the tax credits computer. Follow the guidance in TCM0066100.

If the claim requires action by the Persons From Abroad Team Fast Track officer

  • pass the casepapers to the Persons From Abroad Team Fast Track officer
  • take no further action.

If the claim doesn’t require action by the Persons From Abroad Team Fast Track officer

  • continue to capture the claim and/or new details.
    Note: You have already determined the effective date of the claim to use.
    Note: Always select ‘Process’ on the ‘Summary Information’ screen after capturing the available details.
    Note: Only send casepapers to storage when the claim is in payment.
  • update Application Notes with the message DF12 from TCM0156080. For how to do this, use TCM1000028
  • wait three to 24 hours to make sure the claim is processed
  • go to Step 14.

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Step 14

Check the tax credits computer to confirm whether or not a decision has been made on the claim. For how to do this, use TCM1000131.

If the claim status is ‘Award Issued’, go to Step 16.

If the claim status is ‘Awaiting Award’ because there is missing information or the claim is subject to a verification failure, go to Step 15.

If the claim status is ‘Awaiting Award’ because there is a Compliance check

  • complete the claim details on the Compliance spreadsheet
  • save the case papers in the BF run
  • take no further action.

If the claim status is ‘Awaiting Award’ because there is a ‘Blocking Message’ in the ‘Application Notes’ field

  • complete the electronic ‘Blocking check stencil’ held by your manager
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • take no further action.

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Step 15

Note: You will need to obtain any missing information and deal with any verification failures that have been created.

Obtain the missing information and process the verification failure. To do this

If you are able to process the verification failure, go to Step 16.

If there is not a verification failure and you have been able to obtain all of the missing information over the phone, go back to Step 13.

If you have not been unable to obtain any of the missing information over the phone

  • write to the customer for the missing information
  • save the casepapers in the BF run
  • take no further action.

If you have been able to obtain some, but not all, of the missing information over the phone

  • write to the customer for the missing information
  • go back to Step 13.

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Step 16

Check if a payment schedule has been set up so that the award can be paid. For how to do this, use TCM1000074.

If a payment schedule has been set up

  • return any of the customer’s personal documents to the customer
  • put any correspondence to be retained inside the folded claim form
  • put the folded claim form in a clear wallet
  • send the wallet to storage. Follow the guidance in TCM0074140
  • take no further action.

If a payment schedule has not been set up and the case has not been put in BF for 48 hours

  • BF the case for 48 hours
  • save the casepapers in the BF run
  • take no further action.

If a payment schedule has not been set up and the case has already been put in BF for 48 hours

  • complete the electronic ‘DWP Fast Track Calculating & Scheduling referral’ form
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • return any of the customer’s personal documents to the customer
  • put any correspondence to be retained inside the folded claim form
  • put the folded claim form in a clear wallet
  • send the wallet to storage. Follow the guidance in TCM0074140.