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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Payment - overpayments (F-P): Overpayments - four-week run-on - post-finalisation of payments (AG)

To check a four-week run-on payment of Working Tax Credit (WTC) post-finalisation, consider steps 1 to 18.

Step 1

Before you can continue with the guidance in this Action Guide, follow the guidance in TCM0138020

Note: If you identify that the case is a Complex case, you can continue to follow this guidance but need to be aware that any figures you require will have to be obtained directly from the International Team.

  • go to .

Step 2

If you are working from

  • the ‘Post Finalisation Of Working Tax Credit (WTC) 4 Week Run On’ spreadsheet, go to .
  • an expired BF for a case not originally identified as award status

    ‘Final Act’

    ‘Final Man’

    ‘Final as Act’

    • go to .
  • an expired BF for an RLS case, go to .
  • an expired BF for a case previously identified as SOA (Statement of Account), go to .

Step 3

Use Function AMEND APPLICATION, selecting the ‘Correction’ option

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘Latest’ checkbox
  • select [OK]

    • If the Deceased signal or the RLS signal does not display, go to .
    • If the RLS signal displays

    • BF the case for two weeks
    • use Function MAINTAIN HOUSEHOLD NOTES to record the following

    ‘OW46 - Post Finalisation Of Working Tax Credit Run On case. Unable to action as claim is RLS. Case held in BF until (xx / xx / xx) Grp(xx) / Team / Initials’

    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 the Deceased signal displays and you are dealing with

    • a joint claim, go to to issue any payment to the deceased customer’s partner
    • a single claim, go to the Appointee screen to check if the details of the customer’s estate have been entered

    then

    • If the details of the customer’s estate have been entered, go to to issue any payment to the customer’s estate.
    • If the details of the customer’s estate have not been entered, go to .

Step 4

Complete the WTC 4 week run on stencil - Priority 1 Team (Excel 17KB)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • BF the case for 28 days. This will give the Priority 1 Team enough time to obtain the details of the estate. The Priority 1 Team will then complete the second half of the template and return it to you

then, when you receive the Priority 1 Team’s reply

  • go to .

Step 5

Use Function AMEND APPLICATION, selecting the ‘Correction’ option

  • enter the customer’s NINO in the Key Entry Data screen
  • select the ‘Latest’ checkbox
  • select [OK]
  • has the RLS marker been removed?

    • yes, go to .
    • no

    • BF the case for a further 14 days

    then, if after a total of 42 days, the RLS marker still has not been removed

    • use Function MAINTAIN HOUSEHOLD NOTES to record the following

    ‘OW47 - Unable to action Post Finalisation Of Working Tax Credit Run On case due to RLS marker. No further action taken. Grp(xx) / Team / Initials’

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

    • update the Outcome field on the Post Finalisation Of Working Tax Credit (WTC) 4 Week Run On spreadsheet with ‘No Change’
    • take no further action.

Step 6

Use Function VIEW AWARD

  • enter the customer’s NINO in the Key Entry Data Screen
  • select the ‘All’ checkbox
  • select [OK]. You will be taken to the Select Award screen
  • check that there is a previous year (PY) award version listed with

    ‘Final Act’

    ‘Final Man’

    ‘Final as Act’

    ‘S.O.A’

    Note: If you have previously identified that the case is a Complex case, you must check with the International Team to determine if there is a PY award version listed with any of the above.

  • If the PY award version is

    • ‘Final Act’, go to .
    • ‘Final Man’, go to .
    • ‘Final as Act’, go to .
    • ‘S.O.A’, go to .
    • None of these, go to .

Step 7

Use Function MAINTAIN HOUSEHOLD NOTES to check if manual payments are currently being issued to the customer.

Note: If the case is being paid by manual payment, all notes will have one of the following prefixes - ‘PN’, ‘PP’ or ‘PC’.

  • If manual payments are currently being issued

    • enter the following message

    ‘OW50 - Post Finalisation Of WTC 4 Week Run On case. Insufficient information available as customer is receiving manual payments, therefore unable to action. Grp(xx) / Team / Initials’

    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 manual payments are not currently being issued

    • BF the case for two weeks
    • enter the following message

    ‘OW40 - AT - Post Finalisation Of WTC 4 Week Run On case. PY version not (*FINAL ACT/*FINAL MAN/*FINAL AS ACT). Case held in BF until (xx / xx / xx) Grp(xx) / Team / Initials (*Delete as appropriate)’

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

    • take no further action.

Step 8

BF the case to 28/02/200X

  • use Function MAINTAIN HOUSEHOLD NOTES to record the following message

‘OW48 - AT - Post Finalisation Of WTC 4 Week Run On case. PY version identified as S.O.A. Case held in BF until 28/02/0X, at which time check if case has been restored. Grp(xx) / Team / Initials’

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

  • take no further action.

Step 9

Use Function MAINTAIN HOUSEHOLD NOTES

  • check for the job end date and the amount that was originally calculated as the four-week run-on payment
  • on form TC648, note the job end date and the original four-week run-on amount
  • open the Post finalisation calculator (Excel 20KB)
  • enter the amount issued in the A1 field

then

  • go to .

Step 10

Calculate the daily rate of WTC as shown below and use form TC648 to note the information as required. To do this

  • use Function VIEW AWARD
  • go to the View Tapered Calculations screen for the PY Final Act award version
  • select the latest entitlement period that corresponds with the employment end date
  • note the amount under the Tapered Ent column for the Entitlement category of Work and C / Care, if applicable

Note: If you have previously identified that the case is a Complex case, you must confirm the above figures with the International Team.

  • divide the amount of tapered WTC by the number of days in the entitlement period and repeat for the amount of tapered C / Care, if applicable
  • add the two amounts together to calculate the actual daily rate

Note: When performing the above calculation, always round in the customer’s favour.

  • enter this figure onto the ‘Post finalisation calculator’ in the A2 field and onto form TC648

then

  • go to .

Step 11

To determine the number of days in the run-on period, check the job end date on the form TC648.

  • If the day after the job end date is 09/03/200X or after, go to .
  • If the day after the job end date is 08/03/200X or before

    • select ‘Yes’ from the A3 drop down menu on the ‘Post finalisation calculator’

    Note: The calculator has multiplied the actual income daily rate in the A2 field by 28, then deducted the original run on payment in the A1 field from this amount, to calculate the difference to pay, shown in the A5 field.

    For example:

    Actual income daily rate - £20 (A2 field)

    Original run on payment - £200 (A1 field)

    Calculation performed: £20 multiplied by 28 equals £560, minus £200 equals £360 to pay (A5 field).

    Note: When performing the calculation, the ‘Post finalisation calculator’ will round in the customer’s favour.

    then

    • go to .

Step 12

Use the SEES Tax Credits Dates Calculator to establish the number of days to use. To do this

  • open Microsoft Excel
  • select ‘SEES’ from the toolbar menu
  • select ‘Other Calculators + Forms’
  • select ‘Dates Calculator’
  • select the ‘Time Apportionment’ tab

then, under ‘Base Period’

* enter the day after the job ended in the ‘From’ box
* enter the date 05/04/0X in the ‘To’ box
  • select ‘No’ from the A3 drop down menu on the ‘Post finalisation calculator’
  • enter the figure shown in the ‘No of Days’ box on SEES in the A4 field on the ‘Post finalisation calculator’

Note: The calculator has divided the original run on payment in the A1 field by 28 (to calculate the original daily rate) and multiplied this figure by the number of days in the 200X-200X period, shown in the A4 field. It will then multiply the actual income daily rate in the A2 field by the number of days in the 200X-200X period, shown in the A4 field and deduct the original payment from this figure to calculate the underpayment amount to pay, shown in the A5 field.

For example:

Original amount of run on paid £280 (A1 field)

Number of days in the 200X-200X period is 17 (A4 field)

Calculation performed: £280 divided by 28 multiplied by 17 equals £170

Actual income daily rate £15 (A2 field) multiplied by 17 (A4 field) equals £255

Calculation performed: £255 minus £170 equals £85 underpayment to pay (A5 field).

Note: When performing the calculation, the ‘Post finalisation calculator’ will round in the customer’s favour.

then

  • go to .

Step 13

Check the amount shown in the A5 field on the ‘Post finalisation calculator’.

  • If the amount shown in the A5 field is £2.01 or more, go to .
  • If the amount shown in the A5 field is £2.00 or less

    • update the Post Finalisation Of Working Tax Credit (WTC) 4 Week Run On spreadsheet with the amount calculated, even if this figure is below the limit to pay or is a minus figure which indicates we have overpaid the customer

    Note: You will not need to take any recovery action on any cases were the customer has been overpaid.

    then

    • go to .

Step 14

Issue the amount of outstanding WTC four-week run-on that you have calculated by manual cashcheque. Follow the guidance in TCM0220100

Note: The manual cashcheque must be made payable to the customer who was in receipt of WTC.

Note: It is important that this cashcheque is not posted to the customer’s account. Take the following action before sending it to the Valuables Team

  • print the form R92TC on pink paper and clearly mark it ‘WTC 4 WEEK RUN ON PAYMENT DO NOT POST ONTO ACCOUNT’
  • update the Post Finalisation Of Working Tax Credit (WTC) 4 Week Run On spreadsheet with the amount you have paid to the customer

then

  • go to .

Step 15

Complete and issue letter TC1006 to the customer. Enter

  • the date the original WTC four-week run-on payment was issued
  • the amount of the WTC four-week run-on payment you are making
  • the date the customer should receive their cashcheque

Note: Due to the length of time involved from the point of completing the form R92TC and sending it to Worthing, you must allow ten working days for the customer to receive the cashcheque.

then

  • go to .

Step 16

Use Function MAINTAIN HOUSEHOLD NOTES to enter the following, where applicable

  • for cases where you have issued a cashcheque and the day after the job end date is 08/03/2008 or before, enter

‘OW41 - R92TC (S / N) for £(xx.xx) WTC paid to (Customer’s name). Pymt is based on actual PY inc and covers (Day after job end date) to (end of 28 date period). TC1006 sent by TCO (GB). Grp(xx) / (Team) / (Initials)’

  • for cases where you have issued a cashcheque and the day after the job end date is on or after 09/03/2008, enter

‘OW42 - R92TC (S / N) for £(xx.xx) WTC paid to (Customer’s name). Pymt is based on actual PY inc and covers (Day after job end date) to 05 / 04 / 0X. TC1006 sent by TCO (GB). Grp(xx) / (Team) / (Initials)’

  • for cases where you have calculated the run-on amount and it is equal to the run-on initially paid, enter

‘OW43 - Post Finalisation 4 week run on calcs complete. Entitlement to 4 week run on based on actual PY inc the same, no further action required. Grp(xx) / (Team) / (Initials)’

  • for cases where you have calculated the run-on amount and it is less than the amount initially paid or is a minus figure, enter

‘OW44 - Post finalisation 4 week run on calcs complete. Entitlement to 4 week run on based on actual PY inc does not exceed amount paid initially. No further action required. Grp(xx) / (Team) / (Initials)’

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

then

  • go to .

Step 17

Send any documents to storage. Follow the guidance in TCM0074140

then

  • take no further action.

Step 18

Use Function VIEW AWARD

  • enter the customer’s NINO in the Key Entry Data Screen
  • select the ‘All’ checkbox
  • select [OK]. You will be taken to the Select Award screen
  • check if there is still a PY award version listed with ‘S.O.A’

    • If there is still a PY award version listed with ‘S.O.A’

    • use Function MAINTAIN HOUSEHOLD NOTES to record the following

    ‘OW49 - Post Finalisation Of WTC 4 Week Run On case. 2SD now passed. Case still S.O.A and no chance of restore. No Post Finalisation checks to carry out. Grp(xx) / Team / Initials’

    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 there is not still a PY award version listed with ‘S.O.A’, go back to .