TCM0136420 - Miscellaneous (E to O): NIRS exceptions

Checklist

Before you follow this guidance make sure

  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Background

All tax credits customers who qualify for Working Tax Credit (WTC) also attract a National Insurance Credit (class 1 or class 3) which contributes towards their final retirement pension. The credit is always awarded to the WTC recipient. The class 1 NI credit is only awarded when the recipient also receives a tax credits disability element.

To ensure that all WTC recipients receive the appropriate credit, a data exchange between the tax credits computer and the National Insurance Recording System (NIRS2) is performed twice each year. For various reasons, some of the data cannot always transfer over to the NIRS2 system. In these cases, an exception report (RD23) is created and referred to the TCO to confirm the correct details.

The following exceptions are reported on the RD23

  • non-matching account found. This means that the data sent to NIRS2 is not compatible with the data already held on NIRS, for example
    • the surname is different because the customer has married
    • the surname and/or forename is different due to a keying or capture error on either system
    • the claim is a tax credits mismatch (the date of birth and/or surname is different)
    • the period sent by the tax credits computer does not match a period held on NIRS2
  • account status does not allow processing
    • these cases are normally when a marker on NIRS2 has prevented processing or the claim has been a mismatch and this claim is the corrected claim after all the mismatch action has been done
    • it is particularly important for mismatch claims that the customer’s personal details are correct. The period for credits must also be checked on the corrected claim and the mismatch claim because credits must be allocated from the date the claim was originally made
  • new liability incompatible with existing liability. There are two main reasons for this
    • there are or were two tax credits claims in payment for the same customer and they overlap
    • the customer has started or stopped work in year, so the basic element of WTC has been paid for separate periods throughout the year
  • period WTC / CTC after date of death. This type of exception is usually when a date of death is held on NIRS2 but not on the tax credits computer
  • account not found. These are normally cases with a temporary tax credits reference number (known as NoNo NINO), for example OO021777O.

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 dealing with an RD23 exception report, go to Step 2.

If you are dealing with a schedule report, go to Step 6.

If you are dealing with a compliance termination for a PY or earlier award, go to Step 11 {#}.

Step 2

If the RD23 is for ‘Period of WTC / CTC after date of death’,

  • dispose of the RD23 in confidential waste
  • take no further action

If the RD23 is for ‘Account status does not allow processing’, go to Step 3.

If the RD23 is for ‘Account not found’, go to Step 8.

If the RD23 is for ‘Non-matching account found’, go to Step 4.

If the RD23 is for ‘New liability incompatible with existing liability’

  • dispose of the RD23 in confidential waste
  • take no further action.

Step 3

Check the Access to DWP Data System (ADD) for confirmation of whether or not the customer’s record is NIRS maintained

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

Step 4

Check the tax credits system and note the following details of the customer

  • surname
  • forename
  • date of birth
  • address. For how to do this, use TCM1000189
  • whether they are
    • employed or self-employed. For how to do this, use TCM1000188
    • disabled. For how to do this, use TCM1000187.

Note: If you are taken to the ‘Select Application Version’ screen, ensure you select the most recent version for the relevant tax year.

If an error message appears telling you that you are denied access to the claim you will need to send the RD23 (This content has been withheld because of exemptions in the Freedom of Information Act 2000) . Follow the guidance in TCM0068160.

If the details on the tax credits system are different to those on the RD23, go to Step 5.

If the details on the tax credits system are the same as those on the RD23, go to Step 6.

Step 5

If it appears that the claim is a mismatch, go to Step 7.

Note: The claim will be a mismatch if the NINO on the RD23 brings up a different person (surname, forename and date of birth may be different) on the tax credits system.

If some of the personal details on the tax credits system are different to those on the RD23

  • complete part 1 of the NIRS update referral (Word 91KB) with the personal details from the RD23. For how to do this, use TCM1000191
  • access the tax credits system to amend the personal details so they are the same as those on the RD23. Follow the relevant Changes guidance
  • go to Step 6.

Step 6

Check the tax credits system and note the start and end dates of any WTC basic element in the relevant tax year. For how to do this, use TCM1000190

Note: You will need to check if there was more than one claim in payment for the relevant tax year. Any overlap should be ignored but you must inform NIRS of the dates within that year that WTC was paid. Consider the following examples shown

  • a customer has submitted two claims and
    • payment of WTC overlaps

claim 1 - WTC is payable from 06/04/2009 to 30/09/2009

claim 2 - WTC is payable from 30/08/2009 to 05/04/2010

there is an overlap of one month, however the customer was paid tax credits for the whole year and therefore the period shown on the NIRS update referral should be a start date of 06/04/2009 and an end date of 05/04/2010

or

  • there is a gap in the payment of WTC

claim 1 - WTC is payable from 06/04/2009 to 30/08/2009

claim 2 - WTC is payable from 30/09/2009 to 05/04/2010

two separate periods should be noted on the NIRS update referral as above

  • the customer has started or stopped work in year, so the basic element of WTC has been paid for separate periods throughout the year

06/04/2009 to 12/07/2009

23/07/2009 to 18/09/2009

19/09/2009 to 01/12/2009

02/12/2009 to 25/02/2010

  • there should be just two periods shown on the NIRS update referral as follows

06/04/2009 to 12/07/2009

23/07/2009 to 25/02/2010

Note: If you are taken to the ‘Select Award’ screen, ensure you select the latest finalised award. This will be shown as ‘Final Act’, ‘Final Est’, ‘Final Man’ or ‘Fin As Act’.

  • complete the NIRS update referral in full and email it (This content has been withheld because of exemptions in the Freedom of Information Act 2000) . For how to do this, use TCM1000191
  • print out a copy of the referral
  • attach it to the RD23
  • send them to storage. Follow the guidance in TCM0074140
  • take no further action.

Step 7

Complete an M1 referral form (Word 101KB). For how to do this, use TCM1000192

  • attach the RD23 and a blank NIRS update referral (Word 91KB) to the form
  • send them to the Mismatch Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • take no further action.

Step 8

Check the tax credits system and make a note of the customer’s

  • surname
  • forename
  • date of birth
  • address. For how to do this, use TCM1000189

Note: Use the temporary tax credits reference number on the RD23 to access the tax credits system.

If an error message appears telling you that you are denied access to the claim you will need to send the RD23 (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) TCM0068160(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If an error message does not appear, go to Step 10.

Step 9

Access the Taxpayer Business Service (TBS) to check if the customer has been allocated a NINO. For how to do this, use TCM1000193

If the customer has been allocated a NINO, go to Step 10.

If the customer has not been allocated a NINO

  • set a BF date for one month
  • when the BF date has expired access TBS again to check if the customer has been allocated a NINO. For how to do this, use TCM1000193

Note: Repeat this process on a monthly basis until a NINO has been allocated.

  • once a NINO has been allocated, go to Step 10.

Step 10

When a NINO has been allocated to the customer

  • access the tax credits system to check and note the start and end dates of any WTC basic element awarded in all the tax years covered by the temporary tax credits reference number. For how to do this, use TCM1000190

Note: If you are taken to the ‘Select Award’ screen, ensure you select the latest finalised award. This will be shown as ‘Final Act’, ‘Final Est’, ‘Final Man’ or ‘Fin As Act’.

  • complete a separate NIRS update referral (Word 91KB) for each tax year, stating the actual NINO in part 1 of the referral. For how to do this, use TCM1000191

Note: Do not state the temporary tax credits reference number.

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • print out a copy of each of the referrals
  • attach them to the RD23
  • send them to storage. Follow the guidance in TCM0074140.

Step 11

When you have compliance terminated a PY or earlier award

  • complete a NIRS update referral (Word 91KB). For how to do this, use TCM1000191
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)