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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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NTC listings (Unprocessed S17): NTC listing - Unprocessed S17 - Incompatible - earnings and benefits (AG)

To deal with an entry on the NTC Listing for the ‘Unprocessed S17’ work list with a reason of ‘Incompatible’, consider steps 1 to 22.

Step 1

Use the Function Menu

  • select ‘NTC Listing’ from the Worklists drop down menu. You will be taken to the NTC Listing screen
  • select ‘Unprocessed S17’ from the Listing Type drop down menu
  • select the number that corresponds to the initial letter of the surname you require, from the Selection drop down menu - for example, select 14 for surnames beginning with the letter ‘N’, a full list of the selected items will display

Note: The message ‘No Listing Entries for the Selection / Listing Type’ will display if there aren’t any entries for your chosen number.

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Step 2

Sort and filter the entries to identify the Incompatible (‘INCMPAT’) entries and also the priority cases. To do this

  • select [Sort Filter]. The Sort and Filter Worklist Entries screen will display
  • filter the entries so that only those with a reason of ‘INCMPAT’ are shown
  • sort the entries by reason of the Priority Indicator
  • select [OK]. You’ll be taken to the NTC Listing screen
  • where there are additional reasons for the work item other than ‘Appeal’ and ‘Incompatible’, follow the guidance in TCM0196220
  • make a clerical note of the work item you’re going to action - for example, name, NINO, reason for the work item, whether or not an ‘Appeal’ reason is shown and also check if an action date has expired
  • go to Step 3.

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Step 3

If you noted that you

  • are dealing with an expired action date, use Function VIEW HOUSEHOLD NOTES to check for a note. If the note indicates that we’re

    • waiting for the claim to renew before continuing with the finalise action, go to Step 17.
    • waiting for the claim to finalise before continuing with the final NTC Listing action, go to Step 18.
    • dealing with a reply to a previous enquiry, go to Step 14.
    • dealing with an expired action date for any other reason, go to Step 12.
  • aren’t dealing with an expired action date

    • follow the guidance in TCM0196040

    then

    • return to this guidance and go to Step 4.

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Step 4

Use Function VIEW S17 DETAILS and go to the Declaration Details screen for the PY claim you’re dealing with

Note: The status of the renewal will be displayed in the Status field. Make a note if the status of the CY claim is ‘Terminated’.

  • make a note of the following and which customer it applies to

    • whether the Pension Credit (PC), Income Support (IS) or Jobseeker’s Allowance (JSA) checkbox is selected

    Note: From 27/10/2008, JSA will mean either JSA or ESA.

    • whether earnings as an employee are present
    • whether income from self-employment is present
    • whether other income is present

then

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Step 5

Use Function VIEW APPLICATION for the claim you’re dealing with

  • check the Applicant Work screens for each customer and make a note of the following which indicate if the customer has worked during the award period

    • number of jobs
    • start date of current employment
    • start date of current self-employment
  • select ‘VH’ on the toolbar menu to view the relevant history for each customer. You’ll be taken to the Applicant screen in Function VIEW APPLICATION HISTORY
  • select [OK]. You’ll be taken to the Applicant screen
  • select ‘History’ from the toolbar menu
  • select ‘Total Hours Worked’, if this is available from the options. You’ll be taken to the History screen
  • make a note of the dates of all the periods for PY on the History screen for Total Hours Worked, for both customers

then

  • return to the Applicant screen
  • select ‘History’ from the toolbar menu
  • select ‘IS’, ‘JSA’ or ‘PC’, if available from the options. You’ll be taken to the History screen
  • make a note of the dates of all the periods for PY on the History screen for IS, JSA / ESA or PC, if applicable for both customers
  • use Function VIEW AWARD DETAILS
  • enter the customer’s NINO in the Key Entry Data screen
  • select the All checkbox
  • select [OK]. You’ll be taken to the Select Award screen
  • check the award period for the award you are dealing with for PY. Make a note of the start and end dates of the award
  • go to Step 6.

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Step 6

Use Function VIEW HOUSEHOLD ACCOUNT to check if one or more of the subsequent years’ awards has been finalised. To do this

  • enter the customer’s NINO in the Key Entry Data screen
  • select the All checkbox
  • select [OK]. You’ll be taken to the Select Award screen
  • select the appropriate award year that you’re dealing with
  • select [OK]. You’ll be taken to the View Award Period Summary screen
  • check the Award Status field. Check and make a note if the award status for any of the subsequent years is finalised

then

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Step 7

Using the information you’ve noted from both Function VIEW S17 DETAILS and Function VIEW APPLICATION, compare all the details and establish the reason for the incompatibility.

  • If a qualifying benefit is indicated in Function VIEW APPLICATION but it isn’t in Function VIEW S17 DETAILS, go to Step 8.
  • If a qualifying benefit is indicated in Function VIEW S17 DETAILS but Function VIEW APPLICATION shows no entitlement or partial entitlement during the PY award, go to Step 8.
  • If there were different benefit dates on the History screen or you have other conflicting information ,go to Step 8.
  • If the employed income or self-employed income has caused the incompatibility because from the notes made at Step 5

    • If you noted at Step 6 that the award status for any of the subsequent years is finalised

    • follow the guidance in TCM0264220 at step 14
    • take no further action in this guidance.

    • the customer was employed or self-employed during PY, but no income is shown on the Annual Declaration for that job type (employed or self-employed) in Function VIEW S17 DETAILS, go to Step 10.

    or

    • a job is shown on the Applicant Work screen in Function VIEW APPLICATION or a number of ‘1’ is shown in the No. of Paid Jobs field and the job isn’t relevant for PY, because it ended in the PY-1 tax year, and no income is shown on the Annual Declaration for that job type

    • in Function AMEND APPLICATION, go to the Work Details screen and remove the ‘1’ from the No of Paid Jobs field. Follow the guidance in TCM0042160

    then

    or

    • the customer was employed or self-employed during PY, but no income is shown on the Annual Declaration for that job type (employed or self-employed) in Function VIEW S17 DETAILS and the customer has been on a qualifying benefit for the entire award period, go to Step 15.
    • the figure of 0.01 is shown in any of the Income fields in Function VIEW APPLICATION

    • remove it. Follow the guidance in TCM0042160

    then

Note: If there is more than one reason for the incompatible work item, you must follow the guidance for each item and process the information together.

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Step 8

Use the Access to DWP Data (ADD) system to establish the dates the customer and/or partner was in receipt of each benefit. For more information, follow the guidance in the Access to DWP Data System manual.

  • make a note of the start date and end date, if appropriate of the qualifying benefits shown in ADD.

    • If you noted in Step 6 that the award status for any of the subsequent years is finalised
    • follow the guidance in TCM0264220 from step 9
    • take no further action in this guidance.
  • If the start date of the award period of benefit was after the start date of the PY award period and the start date in the claim doesn’t match the start date in ADD, go to Step 9.
  • If the start date of the award period of benefit shown in ADD was after the start date of the PY award period and there was no start date on the tax credits computer, go to Step 9.
  • If ADD shows that the customer wasn’t in receipt of the benefit at all during the PY award period

    • delete the benefit start date. Follow the guidance in TCM0042160

    then

  • If ADD shows that the customer was previously in receipt of the benefit but this ended before the start of the PY award period, go to Step 9.
  • If ADD shows that the customer has never been in receipt of the benefit

    • delete the benefit start date. Follow the guidance in TCM0042160
    • then
    • go to Step 15.
  • If the start date of the award of benefit was before the start date of the PY award period, and therefore the Annual Declaration is correct, go to Step 9.

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Step 9

Use Function AMEND APPLICATION, choosing the Correction option

  • go to the Applicant Details screen
  • go to the appropriate screen for the signal to be corrected
  • select ‘History’ from the toolbar menu
  • select the relevant benefit from the options available. You’ll be taken to the History screen

Note: Select JSA if the relevant benefit is either JSA or ESA.

  • select the appropriate period of history entry
  • select [Change]. You’ll be taken to the Change screen
  • enter the date noted from ADD in the relevant benefit Start Date and/or End Date field
  • enter the income, benefit and earnings figures that have been provided by the customer when you contacted them

Note: If the start date of the award of benefit in ADD was before PY, enter the start date of 06 April for PY. Don’t enter a date earlier than this.

  • select [OK]. You’ll be taken to the Amend Finish screen
  • enter the date the notification of the change was received in the Received Date field. This will be the creation date of the work list entry
  • select the source of the information from the Source drop down menu - for example, telephone
  • select [OK]. The computer will automatically accept the amendment

    • If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays

    • the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message

    then

    • go to Step 15.

    • If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays

    • you won’t be able to make the change because the PY actual income is required, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message

    then

    • go to Step 15.

    • If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays

    • the changes you are making will re-finalise the claim
    • select [Cancel]. You will be taken to the Amend Application Details screen
    • select [Cancel]
    • when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
    • pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on TCM0320260
    • take no further action.

    • If none of the messages display, go to Step 15.

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Step 10

Phone the customer. Follow the guidance in TCM0094080

  • explain to the customer that the source of income on the Annual Declaration is different from the source of income already held on the computer

Note: For example, the customer has declared self-employed income on the Annual Declaration but the details you’ve noted in Function VIEW APPLICATION indicate that the customer works for an employer.

Note: If the customer informs you of a change of circumstances during the phone call, take the details of the change and follow the guidance in TCM0042260. If you’re able to process the change, capture not only the reported change of circumstances but the details of the incompatibility.

  • ask the customer to confirm the correct source of income

    • If the customer confirms that the information on the Annual Declaration is

    • correct, go to Step 15.
    • incorrect and provides the correct details, go to Step 15.

    • If the customer is unable to provide the correct information, go to Step 13.
    • If the customer can’t be contacted by phone, go to Step 11.

Note: If you discover that there’s undisclosed employment or additional sources of income, follow the guidance in TCM0080120 using number ‘04’ as the reason for the enquiry.

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Step 11

Send form TC664 (option 3) to the customer asking for the information you require.

Note: Refer to the notes you made when you were in Function VIEW S17 DETAILS and Function VIEW APPLICATION to establish the information you require.

  • Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘SI20 - TC664 issued to customer’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

  • use Function NTC LISTING to set an action date of 14 days in the future on the work item
  • take no further action.

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Step 12

Use Function VIEW HOUSEHOLD NOTES to check if the missing information has been recorded. If the missing information

  • has been recorded, go to Step 15.
  • hasn’t been recorded, in Function VIEW HOUSEHOLD NOTES, check if a reminder form TC664R has already been issued to the customer for the missing information

    • If a reminder form hasn’t previously been issued

    • send a reminder form TC664R to the customer
    • use Function NTC LISTING to set an action date of 14 days in the future on the work item
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

    ‘SI21 - reminder form TC664R issued to customer’

    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

    • take no further action.

    • If a reminder form has previously been issued, go to Step 15.

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Step 13

If the customer can’t provide all the information you require

  • tell the customer to contact the Tax Credits Helpline on 0845 300 3900 as soon as possible with the information
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘SI05 - Missing details asked for - Clmt to call back with missing *income/benefits information *delete as appropriate’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

  • use Function NTC LISTING to set an action date of 14 days in the future on the work item
  • take no further action.

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Step 14

Use Function VIEW S17 DETAILS and go to the Current Position screen for the PY claim that you’re dealing with to establish the status of the renewal (if this isn’t already known).

  • If the PY claim

    • is ‘Finalised’, go to Step 22.
    • isn’t ‘Finalised’ and the customer has confirmed that the details on the Annual Declaration are

    • correct, go to Step 15.
    • incorrect, go to Step 15 to enter the correct details the customer has provided.

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Step 15

Use Function AMEND APPLICATION, choosing the Correction option and go to the Income screen for customer 1 and/or customer 2

  • amend the PY-1 income details with the details provided on the Annual Declaration that you’ve just noted in Function VIEW S17 DETAILS or with the correct details that the customer has provided
  • select [OK]. You’ll be taken to the Amend Finish screen
  • enter the date the notification of the change was received in the Received Date field
  • select the source of the change from the Source drop down list. For example, telephone or paper
  • select [OK]. The computer will automatically accept the amendment

    • If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays

    • the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message

    then

    • go to Step 16.

    • If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays

    • you won’t be able to make the change because the PY actual income is required, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message

    then

    • go to Step 16.

    • If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays

    • the changes you are making will re-finalise the claim
    • select [Cancel]. You will be taken to the Amend Application Details screen
    • select [Cancel]
    • when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
    • pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on TCM0320260
    • take no further action.

    • If none of the messages display, go to Step 16.

Note: If you discover that there’s undisclosed employment or additional sources of income, follow the guidance in TCM0080120 using number ‘04’ as the reason for the enquiry.

Note: The changes you’ve made in the function won’t be applied until you complete the Amend Finish screen and select [OK].

Note: The Received Date field will always default to today’s date. You must enter the date the change of circumstances was notified, not the date the change is actioned. If there’s more than one notification date, then the earliest notification date must be entered.

Note: Enter the income only, you don’t need to change any from and to dates.

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Step 16

Use Function MANAGE FINALISATION and go to the Manage Finalisation screen for the 20XX-20XX claim that isn’t finalised

  • select [Process]. You’ll be taken to the Process screen
  • select ‘TCO’ from the Action Authority drop down menu

    • If [Renew] isn’t available, go to Step 17.
    • If [Renew] is available

    • select ‘As Agreed’ from the Renew drop down menu
    • select [Renew]

    Note: If an error message displays, select [OK] or [Yes], as appropriate and continue with your action.

    • use Function NTC LISTING to set an action date of three days in the future on the work item
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

    ‘SI08 - Wait for claim to renew before continuing with the finalise action’

    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

    • take no further action.

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Step 17

Use Function MANAGE FINALISATION and go to the Manage Finalisation screen for the 20XX-20XX claim that isn’t finalised

  • select [Process]. You’ll be taken to the Process screen
  • select ‘TCO’ from the Action Authority drop down menu
  • select ‘As Agreed’ from the Finalise drop down menu

    • If [Finalise] isn’t available, go to Step 18.
    • If [Finalise] is available

    • select [Finalise]
    • Note: If an error message displays, select [OK] or [Yes], as appropriate and continue with your action.
    • use Function NTC LISTING to set an action date of three days in the future on the work item
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

    ‘SI09 - Wait for claim to finalise before continuing with the final NTC Listings action’

    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

    • take no further action.

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Step 18

Use Function VIEW HOUSEHOLD ACCOUNT

  • go to the View Award Period Summary screen
  • check the Award Status field to check if the PY award has been finalised. If the award status

    • is shown as ‘Finalised’, go to Step 19.
    • isn’t shown as ‘Finalised’

    • ask your manager for a specific action date
    • use Function NTC LISTING to set the action date on the work item
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

    ‘SI10 - Claim has not finalised cannot continue with the NTC Listings action’

    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

    • take no further action.

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Step 19

Check the clerical note you made for the work item

  • If there was an ‘Appeal’ reason shown

    • complete and issue form TC853 (appeal letter)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

    Note: This explains to the customer that their appeal rights on the original claim still stand.

    then

  • If there wasn’t an ‘Appeal’ reason shown, go to Step 20.

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Step 20

Use Function MAINTAIN HOUSEHOLD NOTES

  • select the ‘Renewals & Reminders’ category to record the following, where appropriate

‘SI11 - Form TC853 issued’

‘SI27 - 20XX/20XX Claim Finalised’

‘SI28 - 20XX/20XX Claim Finalised and 20XX/20XX claim Renewed’

and

any other action that you haven’t already recorded

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

then

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Step 21

If you noted at Step 4 that the CY claim

  • is terminated

    then

    • return to this guidance and go to Step 22.
  • isn’t terminated, go to Step 22.

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Step 22

Use Function NTC LISTING to identify the work item you have just actioned. To do this

  • go to the NTC Listing screen
  • select ‘Unprocessed S17’ from the Listing Type drop down menu
  • select the number that corresponds to the initial letter of the name you require from the Selection drop down menu - for example, select 14 for names beginning with the letter ‘N’, a full list of the selected items will display
  • select [Sort Filter]. The Sort and Filter Worklist Entries screen will display
  • filter the entries with the reason of ‘Reference’, entering the NINO you made a clerical note of in the From Value and To Value fields
  • select [OK]. You’ll be taken to the NTC Listing screen which will display the work item you’ve just actioned
  • select the work item
  • select [Delete]
  • when the message ‘Listing entry will be permanently deleted’ displays, select [OK]. The work item will be deleted from NTC Listing

then

  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘SI15 - Work item deleted from NTC Listing’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

  • send any casepapers to storage. Follow the guidance in TCM0074140.