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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 - Verification failures (AG)

To deal with an entry on NTC Listing for the Unprocessed S17 work list with a reason of ‘Verification Failure’, consider steps 1 to 21.

Step 1

Use the Function Menu

  • select ‘NTC Listing’ from the Worklists drop down menu. You’ll 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 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

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 are 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 ‘Verification Failure’ (VF) 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 ‘VF’ are shown
  • sort the entries by reason of the Priority Indicator
  • select [OK]. You’ll be taken to the NTC Listing screen
  • make a clerical note of the work item you are 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

Note: If the reason doesn’t display, select the work item and then select [Details]. The Listing Entry Details screen will display, which will show the reason for the work item.

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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 16.
    • waiting for the claim to finalise before continuing with the final NTC Listing action, go to Step 17.
    • dealing with an expired action date for any other reason, go to Step 11.
  • are dealing with a reply to an enquiry and

    • all the information is received, go to Step 13.
    • all the information isn’t received, 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 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 20XX-20XX 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. If the award status for any of the subsequent years is

    • finalised

    • make a note of this

    then

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Step 5

Use Function VIEW LINKED WORK ITEMS

  • enter the customer’s NINO in the Key Entry Data screen
  • select [OK]. You’ll be taken to the View Linked Work Items screen

Note: If you’re taken to the Select Household screen, select the household you’re dealing with and then select [OK]. You’ll then be taken to the View Linked Work Items screen.

  • check if the work item is on the Verification Failures work list

    • If the work item is on the Verification Failures work list, make a note of the MU number and then go to Step 6.
    • If the work item isn’t on the Verification Failures work list and you noted at Step 4 that the award status for any subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 14.
    • unfinalised, go to Step 13.

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Step 6

Use Function MAINTAIN WORKLIST

  • select the Verification Failures work list from the drop down menu for the Worklist Type field
  • select the MU number you noted at Step 5 from the drop down menu for the MU field, if the one you want isn’t already displayed in this field. The screen will be redisplayed with the entries currently on the work list

Note: All the entries for the Verification Failures work list are displayed for your MU.

  • filter the items using the NINO to select the work item that you want to work. Follow the guidance in TCM0140180 

    • If there is a work item on the Verification Failures work list, go to Step 7.
    • If there isn’t a work item on the Verification Failures work list and you noted at Step 4 that the award status for any subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 14.
    • unfinalised, go to Step 13.

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Step 7

On the Maintain Worklist screen, select the work item

  • select ‘File’ on the toolbar menu
  • select ‘Next Function’ from the options available. You’ll be taken to the Select Next Function screen
  • select Function MANAGE VERIFICATION FAILURES. You’ll be taken to this Function
  • in Function MANAGE VERIFICATION FAILURES, check the reason for the verification failure. If the reason is

    • rule 2B, 4, 5 or 12, go to Step 8.
    • rule 2A, 3, 6, 7, 8, 9, 10 or 11 and you noted at Step 4 that the award status for any subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 14.
    • unfinalised, go to Step 13.

    Note: Verification failure rules 2b, 4, 5, and 12 have to be cleared for the renewal to finalise. You must only work the verification failure rules that you have been told to by your manager.

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Step 8

Use Function VIEW HOUSEHOLD NOTES and follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 to check if you have all the information you need to work the verification failure.

  • If you don’t have all the information you need and you noted at Step 4 that the award status for any subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 10.
    • unfinalised, go to Step 9.
  • If you have all the information you need and you noted at Step 4 that the award status for any subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 14.
    • unfinalised

    • resolve the verification failure. Follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 

    then

  • If the customer informs you of a change of circumstances and you noted at Step 4 that the award status for any of the subsequent years is

    • finalised, follow the guidance in TCM0264220 from step 14.
    • unfinalised

    • check that you can process the change of circumstances. Follow the guidance in TCM0042260 

    then, once you’ve completed your actions

    • return to this guidance
    • resolve the verification failure. Follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 

    then

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Step 9

Phone the customer to obtain the missing 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.

Note: If the customer informs you of a change of circumstances during the phone call, you must take the details of the change and action the change. Follow the guidance in TCM0042260 to determine if the change can be processed and capture all the information provided by the customer, including the information obtained and the reported change of circumstances.

  • If you can’t contact the customer by phone, go to Step 10.
  • If the customer provides all the missing information

    • resolve the verification failure. Follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 

    then

  • If the customer doesn’t provide all the missing information

    • tell the customer to phone 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/SOC 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 issue form TC664 with the questions you need to obtain the missing information
  • 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

‘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.

  • take no further action.

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Step 11

Use Function VIEW HOUSEHOLD NOTES to check if a reminder form TC664R has already been issued to the customer for the missing information.

  • If a reminder hasn’t previously been issued

    • send a reminder form TC664 to the customer
    • use Function NTC LISTING to set an action date of a further 14 days in the future on the work item
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

    ‘SI22 - 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 has previously been issued, in Function VIEW HOUSEHOLD NOTES, check for the missing information. If the missing information

    • has been recorded, go to Step 13.
    • hasn’t been recorded

    • follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 for the action to take when there has been no response to the enquiry and the reminder cycle has expired

    then

    • return to this guidance and go to Step 13.

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Step 12

If you receive a written reply from the customer, but some of the information is still missing, phone them and ask for the missing information. Follow the guidance in TCM0094080.

  • If you obtain all the missing information

    • resolve the verification failure. Follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 

    then

  • If the customer can’t provide all the missing information, go back to Step 10.
  • If the customer informs you of a change of circumstances

    • check that you can process the change of circumstances. Follow the guidance in TCM0042260 

    Note: Ensure that all the information provided is captured including the change of circumstances.

    then, once you have completed your actions

    • return to this guidance
    • resolve the verification failure. resolve the verification failure. Follow the relevant guidance in TCM0076000, TCM0078000 or TCM0080000 

    then

  • If there isn’t a phone number or the customer doesn’t answer

    • send form TC664 (option 3) to the customer requesting the missing information

    then

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Step 13

Note: If you’re working Function NTC LISTING after 

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

Use Function VIEW S17 DETAILS and go to the Declaration Details screen to note the information that has been provided for PY

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’.

  • from the information on the Declaration Details screen, make a note of the following 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 it’s available and make a note of the same details for PY-1 that you’ve just made for the PY claim

then

* If the customers are on IS, JSA or PC only and no income is declared, go to [Step 15](#IDAVLJPJ).
* If any other circumstances apply, go to [Step 14](#IDATFJPJ).

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Step 14

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 have noted from Function VIEW S17 DETAILS into the corresponding PY and/or PY-1 Income fields, ensuring you select ‘A’ for each entry

Note: If the status of the income is ‘S’, the Amount field won’t be enabled. Changing the status to ‘A’ will enable the Amount field.

Note: If the details shown in Function AMEND APPLICATION don’t match those given on the Annual Declaration, correct the relevant details.

  • 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 information from the Source drop down menu - for example, telephone
  • select ‘Change of Circumstances’ from the Reason drop down menu
  • select [OK]

    • 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
    • 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
    • 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 15

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 16.
    • If [Renew] is available
    • select ‘As Agreed’ from the Renew drop down menu

    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 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
  • select ‘As Agreed’ from the Finalise drop down menu

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

Use Function VIEW HOUSEHOLD ACCOUNT

  • go to the View Award Period Summary screen
  • check the Award Status field to check if the 20XX-20XX award has been finalised. If the award status

    • is shown as ‘Finalised’, go to Step 18.
    • 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 18

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 19.

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Step 19

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 20

If you noted at Step 13 that the CY claim

* is terminated

* follow the guidance in [TCM0262230](https://www.gov.uk/hmrc-internal-manuals/tax-credits-manual/tcm0262230) 

then

* return to this guidance and go to [Step 21](#IDAB2JPJ).

* isn’t terminated, go to [Step 21](#IDAB2JPJ).

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Step 21

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 have 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 HOSEHOLD 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.