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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 - PY-1 Incompatible (AG)

To deal with an entry on the NTC Listing for the ‘Unprocessed S17’ work list with a reason of ‘PY-1 Incompatible’, consider steps 1 to 20.

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.

Note: This guidance will ask you to select the 20XX-20XX year that isn’t finalised. The year you need to select depends on when you’re working Function NTC LISTING - for example, if you’re working Function NTC LISTING after

* 6 April 2007, you need to select year 2005-2006
* 6 April 2008, you need to select year 2006-2007
* 6 April 2009, you need to select year 2007-2008, and so on.

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Step 2

Sort and filter the entries to identify the PY-1 Incompatible (PY-1 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 ‘PY-1 INCMPAT’ are shown
  • sort the entries by reason of the Priority Indicator, so that the ‘PY-1 INCMPAT’ priority cases are identified and worked first

Note: Follow the guidance in TCM0140020.

then

  • select [OK]. You’ll be taken to the NTC Listing screen, which will display the sorted and filtered work list entries.
  • 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 15.
    • waiting for the claim to finalise before continuing with the final NTC Listing action, go to Step 16.
    • dealing with an expired action date for any other reason, go to Step 11.
  • 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

Note: If you are working Function NTC LISTING after

  • 6 April 2007, you will be working 2005-2006 as CY, making PY 2004-2005 and 2003-2004 PY-1
  • 6 April 2008, you will be working 2006-2007 as CY, making PY 2005-2006 and 2004-2005 PY-1
  • 6 April 2009, you will be working 2007-2008 as CY, making PY 2006-2007 and 2005-2006 PY-1, and so on.

In Function VIEW HOUSEHOLD NOTES, check whether the customer has already been contacted and has provided information about the actual PY income components.

  • If there is a note indicating that the customer has already confirmed that the actual income components for PY on the Annual Declaration are correct, make a note of this and then go to Step 8.
  • If there is a note indicating that the customer has already confirmed that the actual income components for PY on the Annual Declaration are incorrect and they’ve provided the correct components, make a note of this and then go to Step 8.
  • If there isn’t a note that helps you to establish the correct actual income components for PY

    • use Function VIEW S17 DETAILS
    • go to the Current Position screen for the 20XX-20XX claim that you’re dealing with
    • select the relevant work item in the Declaration box
    • select [Details] (immediately beneath the Declaration box). You’ll be taken to the Declaration Details screen
    • go to Step 5.

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Step 5

On the Declaration Details screen

  • select [PY-1 Details] to view the actual income details for PY-1. You’ll be taken to the PY-1 Declaration Details screen
  • use the details presented to you on the screen to check which of the following have amounts shown and which customer they apply to and then note them on a form TC648

    • taxable Social Security benefits
    • earnings as an employee
    • earnings from self-employment
  • go to Step 6.

Note: If the family has ceased, you must only consider the information for the customer the PY-1 Incompatibility work item relates to. You can establish this in Function MAINTAIN WORKLIST from the name and NINO of the customer shown on the ‘Unprocessed S17’ work list entry.

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Step 6

Go back to the Current Position screen

  • select [View Application]
  • go to the Income screen
  • select ‘PY-1’ in the Income Years field. The income details for the PY-1 tax year will be displayed
  • check whether any of the following are completed or have amounts shown for each customer for the PY-1 tax year

    • taxable Social Security benefits
    • earnings as an employee
    • earnings from self-employment
  • make a note of the above on form TC648 for your own reference

then

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Step 7

Using the information you have noted from both Function VIEW S17 DETAILS and Function VIEW APPLICATION, compare all the details and establish the reason for the PY-1 Incompatible

  • the reason for the incompatibility will be because one or more of the following estimated income components for the tax year PY-1 were captured on the original claim

    • taxable Social Security benefits
    • earnings as an employee
    • earnings from self-employment

    and

    • the customers haven’t declared the same actual income components for PY-1 on the Annual Declaration

then, when you’ve decided which income components have resulted in the PY-1 Incompatibility failure

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Step 8

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

    • follow the guidance in TCM0264220 at step 10
    • take no further action in this guidance.

    • unfinalised

    • If you noted at Step 4 that the customer has already confirmed that the actual income components for PY-1 on the Annual Declaration are correct, go to Step 12.
    • If you noted at Step 4 that the customer has already confirmed that the actual income components for PY-1 on the Annual Declaration aren’t correct and they’ve provided the correct components, go to Step 13.
    • If any other circumstances apply, go to Step 9.

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Step 9

Phone the customer to obtain the correct information. Follow the guidance in TCM0094080.

Note: If there’s an ongoing appeal and the customer asks about this whilst you’re on the phone, tell them that the information for their renewal doesn’t affect their appeal and that the original appeal still stands.

  • explain to the customer that the actual income declared on the Annual Declaration for the tax year PY-1 differs from the estimated income declared on the tax credits claim

For example: on the claim form, the customer gave an estimate of income from self-employment for the tax year PY-1, but on the Annual Declaration they’ve declared actual income from earnings as an employee.

and

  • ask the customer to confirm which income components are correct.

Note: If the customer informs you of a change of circumstances during the phone call, you must follow the guidance in TCM0042260 to determine if you can make the change.

Note: If, after contacting the customer, 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.

* If the customer confirms that the information provided on the Annual Declaration is correct, go to [Step 12](#IDAMBSGD).
* If the customer confirms that the information provided on the Annual Declaration is incorrect and has provided the correct details, go to [Step 13](#IDAGESGD).
* If you can’t contact the customer by phone because there isn’t a phone number, or you can’t get a reply, go to [Step 10](#IDAE2RGD).
* If you’re able to contact the customer by phone but all the information you require can’t be provided because the customer doesn’t have all the details

* tell the customer to call the Tax Credits Helpline on 0845 300 3900 as soon as possible with the information, telling them if they’re late providing the information, their award (if in payment) may be terminated
* use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to enter 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 10

If you can’t contact the customer by phone

  • complete and send formTC664 (option 3) to the customer requesting the information you need. Enter a reply date of 14 days in the future on the form
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to enter 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 11

In Function VIEW HOUSEHOLD NOTES, check if the missing information has been recorded. If the missing information

  • has been recorded, go to Step 12.
  • hasn’t been recorded, use Function VIEW HOUSEHOLD NOTES to check if a reminder form 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 MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to enter 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.

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

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

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Step 12

Use Function VIEW S17 DETAILS

  • go to the Current Position screen for the 20XX-20XX claim that isn’t finalised
  • select [Details] (beneath the Declarations box). You’ll be taken to the Declaration Details screen
  • make a note of the following information that has been provided for 20XX-20XX for customer 1 (and, where applicable, customer 2)

    • whether Pension Credit (PC), Income Support (IS), Jobseeker’s Allowance (JSA) or Employment and Support Allowance (ESA) was in payment for the award period
    • any figures in the Income Totals box, including

    • taxable Social Security benefits
    • earnings as an employee
    • company car and fuel, vouchers and payments in kind
    • income from self-employment
    • other income
  • select [View PY-1 Details] (if available) and make a note of the same details for PY-1 that you’ve just made for the PY claim

Note: Make a note if the Current Year (CY) has been terminated. The reason for the termination will be displayed directly beneath the Status field.

then

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Step 13

Use Function AMEND APPLICATION, choosing the Correction option

  • go to the Income screen for customer 1 and/or customer 2
  • enter the income, benefit and earnings figures that you’ve noted from Function VIEW S17 DETAILS into the corresponding PY-1 and/or PY income fields, ensuring you select ‘A’ for each entry

Note: If the customer has confirmed that the income details on the Annual Declaration were incorrect, enter the correct income details that the cusotmer has provided.

  • select [OK]. You’ll be taken to the Amend Finish screen
  • enter the date the Annual Declaration details were received in the Received Date field
  • select the source of the change from the Source drop down menu - for example, telephone or paper
  • select ‘Change of circumstances’ from the Reason drop down menu
  • 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 14.

    • 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 14.

    • 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 14.

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Step 14

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 14.
    • 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 15

Use Function MANAGE FINALISATION, if you aren’t already in this function

  • 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 16.
    • 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 16

Use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Summary screen to check if the 20XX-20XX award has been finalised

  • check the Award Status field. If the award status

    • is shown as ‘Finalised’, go to Step 17.
    • 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 17

Check the clerical note you made for the work item

  • If there was an ‘Appeal’ reason shown

    • complete and issue form TC853 (appeal letter), selecting the TC853(GB) (Word 126KB) or TC853(NI) (Word 126KB) version as appropriate

    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 18.

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Step 18

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 19

If you noted at Step 11 that the CY claim

  • is terminated

    then

    • return to this guidance and go to Step 20.
  • isn’t terminated, go to Step 20.

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Step 20

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.