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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Payment - overpayments (F-P): overpayments - four-week run-on - exceptions

Reasons to not follow this guidance

You do not need to follow this guidance if

  • the customer’s claim for WTC has ceased or terminated for any other reason than the 50+ element has ended, the disability element has ended or responsibility for the last child has ended.

Note: From 6 April 2012, the 50+ element will no longer exist. All entitlement to 50+ element will end on 05/04/12.

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’re in the correct MU. Use TCM0322460 for the correct MU number.

Background

We need to identify if the claim has ceased or terminated within the four-week run-on period for one of the following reasons

  • 50+ element has ended
  • Disability element has ended
  • responsibility for the last child has ended
  • customer has claimed Universal Credit (UC).

If the claim has ceased or terminated for one or more of these reasons, you may have to consider paying the remaining period of the four-week run-on by User Requested Payment.

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

Check if all the changes have been applied to the claim.

If all the changes have been applied to the claim, go to .

If all the changes have not been applied to the claim and the customer’s hours have reduced below 16 hours weekly, go to .

If all the changes have not been applied to the claim and the customer has stopped work completely, go to .

Note: From 6 April 2012, couples with children will be entitled to working tax credit if they are both aged 16 or over and

  • they work at least 24 hours a week between them, with one person working at least 16 hours a week. If only one person works, that person must be working at least 24 hours a week, or
  • one person works at least 16 hours a week and the other person cannot work because they are

    • incapacitated (in receipt of certain benefits because of a disability or ill health), or
    • an inpatient in hospital, or
    • in prison either on remand or serving a custodial sentence, or
  • one person works at least 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one person works at least 16 hours a week and that person is aged 60 or over.

Step 2

Apply the change from the date the claim ceased or terminated. For how to do this, use TCM1000397 

then

  • go to .

Step 3

Apply the change from the date the claim ceased or terminated. For how to do this, use TCM1000354 

then

  • go to .

Step 4

Check the reason why the claim has ceased or terminated. For how to do this, use TCM1000353.

If the claim has ceased or terminated because the disability element has ended, go to .

If the claim has ceased or terminated because the 50+ element has ended, go to .

If the claim has ceased or terminated because responsibility for the last child has ended, go to .

If the claim has ceased or terminated due to any combination of the disability element ending, 50+ element ending or responsibility for the last child ending, go to .

If the claim has ceased because UC has been claimed, go to .

If the claim has ceased or terminated for any other reason, go to .

Step 5

Pay the remaining period of the four-week run-on period without the disability element

then

  • go to .

Step 6

Note:From 6 April 2012, the 50+ element will no longer exist. All entitlement to 50+ element will end on 05/04/12.

Pay the remaining period of the four-week run-on period without the 50+ element

then

  • go to .

Step 7

Pay the remaining period of the four-week run-on period without the child element

then

  • go to .

Step 8

Pay the remaining period of the four-week run-on period without the elements that have ended

then

  • go to .

Step 9

The remainder of the four-week run-on period must not be paid

  • clear the entry on the 4WRO spreadsheet
  • update Household Notes with the message OW53 from TCM0166040. For how to do this, use TCM1000001 
  • send the papers to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 10

Use the SEES Tax Credit Entitlement calculator to determine the amount the customer is entitled to. For how to do this, use TCM1000089 

Note: This will be from the day after the effective date the claim ceased or terminated to the end of the four-week run-on period minus whichever element is relevant (disability element, 50+ element or child element).

then

  • go to .

Step 11

Pay the amount you have calculated at by User Requested Payment. Follow the guidance in TCM0228060 

  • clear the entry on the 4WRO spreadsheet
  • update Household Notes with the message OW54 from TCM0166040. For how to do this, use TCM1000001 
  • send the papers to storage. Follow the guidance in TCM0074140 
  • take no further action.