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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Miscellaneous (E to O): In and Out of Work (IS, JSA, ESA) - WTC 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 are in the correct MU. Use TCM0322460 for the correct MU number.

Reasons not to follow this guidance

You do not need to follow this guidance if

  • you are dealing with an In and Out of Work claim with children

Background

A customer starting a new job is advised by the Job Centre Plus (JCP) that they may be entitled to Working Tax Credits (WTC). JCP take the customer’s details and complete the In and Out of Work database. The In and Out of Work team will then carry out pre-capture checks and if the customer is eligible a new WTC claim is captured using the completed details on the In and Out of Work database.

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

If you are processing a new claim, go to .

If you are dealing with returned correspondence, go to .

If the BF date was set due to the self-employment start date, go to .

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

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

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

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

Step 2

Check if tax credits are currently in payment for either customer or both customers. For how to do this, use TCM1000073.

If tax credits are currently in payment

  • complete form TC648 indicating that a tax credits claim is already in payment
  • investigate the reasons why tax credits are already in payment and note on form TC648
  • make any relevant changes. Follow the guidance in TCM0042260
  • update Application Notes with the message QF04 from TCM0170020. For how to do this, use TCM1000028 
  • update the In and Out of Work database
  • take no further action.

If tax credits are not currently in payment, go to .

Step 3

Using the information on the In and Out of Work database, check if the date the customer started work is no more than seven days after the date of claim.

If the work start date is not more than seven days after the date of claim, go to .

If the work start date is more than seven days after the date of claim, go to .

Step 4

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

Note: When updating the income details you must follow TCM0136170.

Note: The date of claim will always be the ‘Date submitted’ shown on the In and Out of Work database.

Note: Use the source as ‘Interview’.

Note: Always select ‘Process’ on the ‘Summary Information’ screen after capturing the available details.

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

  • contact the customer for any missing information. Follow the guidance in TCM0094080 
  • continue to capture the claim
  • pass the case papers to the Persons From Abroad Team Fast Track Officer
  • update Application Notes with the message QF03 from TCM0170020. For how to do this, use TCM1000028 
  • update the In and Out of Work database
  • take no further action.

If the claim does not requires action by the Persons From Abroad Team Fast Track officer

  • continue to capture the claim and/or new details
  • update Application Notes with the message QF01 from TCM0170020. For how to do this, use TCM1000028 
  • go to .

Step 5

If the repair summary box shows a reason of ‘SELF EMPLOYED START DATE’

  • store the claim until the work start date
  • update the In and Out of Work database
  • update Application Notes with the message QF16 from TCM0170020. For how to do this, use TCM1000028 
  • take no further action.

If the repair summary box does not shows a reason of ‘SELF EMPLOYED START DATE’

  • wait between three to 24 hours to make sure the claim is processed
  • go to .

Step 6

Amend the effective date of the claim to the date the customer or their partner, if applicable became self-employed. For how to do this, use TCM1000480 

  • wait between three to 24 hours to make sure the claim is processed
  • go to .

Step 7

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 .

If the claim status is ‘Rejected’

  • update the In and Out of Work database
  • take no further action.

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

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

  • complete the claim details on the Compliance spreadsheet
  • update the In and Out of Work database
  • 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)
  • update the In and Out of Work database
  • take no further action.

Step 8

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

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

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

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

If you have been unable to obtain any of the missing information over the phone

  • write to the customer for the missing information
  • file the casepapers in the BF run for 14 days
  • update Application Notes with the message QF02 from TCM0170020. For how to do this, use TCM1000028 
  • take no further action.

If you have obtain some but not all of the missing information over the phone

  • write to the customer for the missing information
  • BF the casepapers for 14 days
  • update Application Notes with the message QF02 from TCM0170020. For how to do this, use TCM1000028
  • go back to .

Step 9

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 

  • update the In and Out of Work database
  • take no further action.

If a payment schedule has not been set up

  • BF the case for a further 48 hours
  • file the case in the BF run
  • update the In and Out of Work database
  • take no further action.

Step 10

Contact the customer. Follow the guidance in TCM0094080. Tell the customer that

  • the claim they have recently made will be rejected because their remunerative work starts more than seven days after the date of claim
  • they will need to make another claim if they still want to be paid Working Tax Credit
  • they should return to the Jobcentre Plus office for further assistance

then

  • go back to to capture the claim in order for a rejection notice to be issued to the customer.