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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Miscellaneous (E to O): Good cause - renewals

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0262260
  • you have the correct user roles to follow this guidance

Background

Each case that is being considered for Good Cause must be looked at on its own merits, so the decision will always be fair and reasonable. You must consider all the customers circumstances for the late response. If the reason is unclear, you must decide if further enquiries need to be made. You need to consider if the customer

  • could not complete the form or reply earlier due to exceptional circumstances.
  • could not make arrangements for someone else to handle their affairs.
  • was able to complete the form but was unable to post the form. You would then need to consider whether it would have been reasonable for the customer to ask a relative or friend to post the form on their behalf.

You should accept the customer’s word, unless you have sufficient reason not to do so. For example, where we have evidence that the customer has a history of failing to return notifications, requests for information and so on.

If the customer has submitted a new claim within 60 days of the issue date of the SOA, and it is not yet in payment, Good Cause can be accepted and the new claim will be withdrawn. In these cases we would restore the claim, follow the guidance in TCM0262260.

Note:If a new claim is in payment, you can restore the claim until the day before the new claim began.

Note: This used to be only 30 days of the issue date of the SOA until 2009-2010.

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.

Universal Credit

Universal Credit is a new benefit that is replacing a range of existing benefits including tax credits.  If the household contains individuals of working age and living in a Universal Credit area, the law states they are not eligible to tax credits but can claim Universal Credit. The exception to this is for those households that contain an individual of Pension Credit Qualifying Age (PCQA), as these will be allowed to claim tax credits.

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Step 1

If you are dealing with a ‘Good cause refused or not applicable’ e-form referral from the ‘Contact Centre’, go to Step 12.

If you are dealing with a new good cause request, go to Step 2.

If you issued a TC1121 only, go to Step 5.

If you issued a TC1121 and TC603D, go to Step 5.

If you issued a TC603D only, go to Step 5.

If you issued a TC664 and a TC1121, go to Step 5.

If you have issued a TC664 only,go to Step 5.

If you are dealing with an expired action date, go to Step 5.

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Step 2

Check if the customers second specified date (2SD) has passed. For how to do this, use TCM1000002.

If the annual declaration (TC603D) or restore request was received prior to 2SD, go to Step 3.

If the annual declaration (TC603D) or restore request was not received prior to 2SD,go toStep 10.

If you are dealing with a Work Area Mailbox (WAM) referral or item of correspondence, go to Step 6.

If you are dealing with an Unprocessed S17 work list item, or NTC Listing, go to Step 7.

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Step 3

If the restore request has been received but we have no declaration details

  • issue TC1121 if we require a Good cause reason
  • issue TC603D
  • set a clerical BF for 30 days
  • update Household Notes with the message SA70 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

If the restore request has been received but we have missing information

Note: This is when there are no income or benefit details on the Annual Declaration.

  • make a note of the missing information on form TC648
  • go to Step 4.

If the restore request has been received and we have a completed declaration, go to Step 6.

Note: A ‘completed declaration’ means the customer has declared income or benefits on the WAM/Declaration.

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Step 4

Contact the customer to obtain the Good cause reason if not supplied and any missing information noted at Step 3. For how to do this, follow the guidance in TCM0094080.

If you were able to contact the customer

  • make a note of the information on form TC648
  • go to Step 9.

If you were not able to contact the customer

  • Access the SEES ‘letter and forms’ to complete and send form TC1121 to the customer if we have not established Good cause. For how to do this, use TCM1000124
  • issue a TC664 for the missing information
  • set a clerical BF for 30 days
  • update Household Notes with the message SA71 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

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Step 5

If you have issued a TC1121 only and the action date has expired

If you issued a TC1121 only and it has been returned, go to Step 6.

If you have issued a TC1121 and TC603D and TC603D has not been returned or if you have issued a TC603D only and the action date has expired, go to Step 13

If you have issued a TC1121 and TC603D and TC1121 has not been returned, go to Step 12.

If you have issued a TC1121 and TC603D and both have been returned, go to Step 6.

If you issued a TC1121 and TC664 and the TC1121 has not been returned, go to Step 12.

If you issued a TC1121 and TC664 and the TC664 has not been returned, go to Step 13

If you issued a TC1121 and TC664 and both have been returned, go to Step 9.

If you issued a TC664 only and it has been returned, go to Step 12.

If you have issued a TC664 only and it has not been returned, go to Step 13

If you have issued a TC603D only and it has been returned, go to Step 12.

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Step 6

Check the information received to see if the customer has given a reason for not responding at an earlier date.

If you have not been given a reason or have not issued a TC1121 and the customer has returned a completed TC603D or declaration

  • access the SEES ‘letter and forms’ to complete and send form TC1121
  • set a 30 day BF date
  • update household notes with the message SA63 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

If they have given a reason and the customer has returned a completed TC603D, go to Step 9.

If they have given a reason and the TC603D is not complete and further information is required,go to Step 7.

If they have not given a reason and you are dealing with a returned TC1121

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Step 7

Contact the customer to ask them why they did not reply at an earlier date if this is required and obtain any missing information from the TC603D. For how to do this, follow the guidance in TCM0094080.

If you were able to contact the customer

  • note the reasons provided
  • go to Step 9.

If you were not able to contact the customer, go to Step 8.

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Step 8

Access SEES to complete and send form TC1121 and TC664 for the missing information to the customer. For how to do this, use TCM1000124

  • set a 30 day BF date
  • update household notes with the message SA71 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

If you are dealing with an Unprocessed S17 work list item

  • set an action date of 30 day in the future. For how to do this, use TCM1000008
  • transfer the work item to the relevant ‘Unprocessed S17 BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household Notes with the message SA63 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

If you are dealing with an item of correspondence or a WAM referral

  • set a clerical action date of 30 day in the future
  • update Household Notes with the message SA63 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

If you are dealing with an entry from an NTC Listing

  • set an action date of 30 day in the future. For how to do this, use TCM1000008
  • update Household Notes with the message SA63 from TCM0172020. For how to do this, use TCM1000001
  • take no further action.

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Step 9

Check and note if the customer was unable to reply at an earlier date because

  • they had exceptional circumstances
  • they were not able to post the form
  • they were not able to arrange for someone else to handle their affairs

Note: You need to consider whether it would have been reasonable for the customer to ask a relative or friend to post the form on their behalf.

Note: If the customer tells us that they returned the declaration, but we never received it, you must consider why the customer did not reply to the Statement of Account (SOA) within 60 days.

If you need to make further enquiries with the customer, go back to Step 7.

If you do not accept that the customer satisfies the good cause criteria

If you accept that the customer satisfies the good cause criteria,

  • update household notes with the message SA58 from TCM0172020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260.
  • take no further action.

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Step 10

Check if the Annual Declaration or restore request was received after 2SD, but up to and including 5 April following the tax year that the Annual Declaration related to. For how to do this, use TCM1000002.

Note: For example, if the declaration relates to the 2010-2011 renewal, was it received before 5 April 2012.

If the Annual Declaration or restore request was received after 2SD but before 5 April following the tax year that the Annual Declaration related to, and all the information has been provided

If the Annual Declaration or restore request was received after 2SD but before 5 April following the tax year that the Annual Declaration related to, and there is missing information

If the Annual Declaration or restore request was received after 5 April following the tax year that the Annual Declaration related to, go to Step 11.

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Step 11

If you noted while following TCM0262120 that the Household has ended, go to Step 14

If you noted while following TCM0262120 that the Household has not ended, go to Step 15

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Step 12

  • follow the guidance in TCM0256040
  • take no further action.

Step 13

Check whether the customer’s postcode and their partner, if applicable, was open to tax credits on the received date of the late declaration and whether the customer and / or their partner is of Pension Credit Qualifying Age (PCQA). For how to do this, use TCM1000628.

Note:  customers living in a postcode area closed to tax credits can only claim if the household contains an individual who is of PCQA.

If the customer is entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138
  • send the letter to the customer to advise them they will need to submit a new claim
  • update Household Notes with the message SA69 from TCM0172020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260

If the customer is not entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138 selecting the option relevant to your case
  • send the letter to the customer to advise them they need to claim Universal Credit
  • update Household Notes with the message TG06 from TCM0174020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260

Step 14

Check whether the customer’s postcode and their partner, if applicable, was open to tax credits on the received date of the late declaration and whether the customer and / or their partner is of Pension Credit Qualifying Age (PCQA). For how to do this, use TCM1000628.

Note:  customers living in a postcode area closed to tax credits can only claim if the household contains an individual who is of PCQA.

If the customer is entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138
  • send the letter to the customer to advise them they will need to submit a new claim
  • update Household Notes with the message SA60 from TCM0172020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260.

If the customer is not entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138 selecting the option relevant to your case
  • send the letter to the customer to advise them they will need to claim Universal Credit
  • update Household Notes with the message TG06 from TCM0174020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260.

Step 15

Check whether the customer’s postcode and their partner, if applicable, was open to tax credits on the received date of the late declaration and whether the customer and / or their partner is of Pension Credit Qualifying Age (PCQA). For how to do this, use TCM1000628.

Note:  customers living in a postcode area closed to tax credits can only claim if the household contains an individual who is of PCQA.

If the customer is entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138
  • send the letter to the customer to advise them they will need to submit a new claim
  • update Household Notes with the message SA60 from TCM0172020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260.

If the customer is not entitled to claim tax credits

  • Access the SEES ‘letter and forms’ to send the following letter. For how to do this, use TCM1000124
  • complete a TC1138 selecting the option relevant to your case
  • send the letter to the customer to advise them they will need to claim Universal Credit
  • update Household Notes with the message TG06 from TCM0174020. For how to do this, use TCM1000001
  • return to the guidance you were following in TCM0262260.