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HMRC internal manual

Tax Credits Manual

Payment - returned or not received: TC241 declaration received

Version 1.0

Changes to previous version - amended guidance. Replaces ‘TC241 Declaration Received’ (Info and AG).

Checklist

Before you follow this guidance, make sure you have

  • the correct user roles to follow this guidance. 
  • you are in the correct MU. Use TCM0322460. for the correct MU number.

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

If you have received a TC241 pseudo referral from the Contact Centre, go to Step 2.

If you have received a TC241 that has been returned to us by the customer because we have asked them to fully complete it, go to Step 2.

If you have received a TC241 from the customer or an email from the Contact Centre stating that, even though PARS shows that the cashcheque was cashed, they were not the person who cashed it, go to Step 40.

Step 2

If the TC241 has not been fully completed, go to Step 3.

If the TC241 has been fully completed, go to Step 4.

Step 3

Check Household Notes to determine if the missing details are displayed and check for any messages relating to manual cashcheques or User Requested Payment. For how to do this, use TCM1000067.

If the missing details are displayed, go to Step 4.

If the missing details are not displayed, go to Step 5.

Step 4

Check Household Notes to determine if any hardship payments have been made. For how to do this, use TCM1000067.

If hardship payments have been made

  • note the amount of hardship payment made to the customer
    then
  • go to Step 6.
    Note: If you replace the payment for the customer, you must remember to reduce the replacement amount by the hardship amount already given to the customer.

If hardship payments have not been made, go to Step 6.

Step 5

Send the TC241 back to the customer

  • ask them to fully complete the TC241 and return it to us
  • take no further action.

Step 6

Check the TC241 has been signed by the payee. For how to do this, use TCM1000433.

If the form has not been signed by the payee, go to Step 7.

If the form has been signed by the payee, go to Step 8.

Step 7

Return the TC241 to the correct customer

  • ask the payee to sign the form and return it to us
  • update Household Notes with the message PR30 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 8

Establish the payment method for the missing payment. For how to do this, use TCM1000434.

If the payment has been made using direct system cashcheque, go to Step 9.

Note: Direct system cashcheques were used as a method of payment until April 2017, from this date customers are required to be paid directly into a bank or building society account.

If the payment has been made using User Requested Payment (cashcheque), go to Step 18.

If the payment has been made using manual cashcheque, go to Step 29.

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Step 9

Check the tax credit computer to determine if the payment has been issued. For how to do this, use TCM1000435.

If the payment is showing as issued

  • note the cashcheque serial number
    Note: You’ll need the serial number when you check PARS.
    then
  • go to Step 10.

If the payment is not showing as issued, go to Step 11.

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Step 10

Check PARS to determine if the payment has been cashed by the customer. For how to do this, use TCM1000412.

If the payment has not been cashed, go to Step 11.

If the payment has been cashed, go to Step 12.

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Step 11

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Cancel and replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 12

Check if the encashment amount of the missing cashcheque matches the original issue amount. For how to do this, use TCM1000412.

If the encashment amount does not match the original issue amount, go to Step 13.

If the encashment amount does match the original issue amount, go to Step 14.

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Step 13

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
    (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 14

Request sight of the missing cashcheque and the cashcheque issued before and the cashcheque issued after from Finance. For how to do this, use TCM1000413.

  • set an action date on the claim for two weeks to allow time for Finance to send you the cashcheques you have requested. For how to do this, use TCM1000008.
    then
  • go to Step 15.

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Step 15

Check if the signature on the cashcheque matches the one on the TC241.

If the signature on the cashcheque matches the one on the TC241, go to Step 16.

If the signature on the cashcheque does not match the one on the TC241, go to Step 17.

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Step 16

Do not replace the payment

  • send letter TC1098 to the customer
  • update Household Notes with the message PR40 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

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Step 17

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR39 from TCM0168040. For how to do this, use TCM1000001.
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
    (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • take no further action.

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Step 18

Note: The Manual Payment Team will update Household Notes whenever they send a manual payment out to a customer.

Check Household Notes for the note which confirms the Manual Payment Team issued and authorised the User Requested Payment.

If there is a note from the Manual Payment Team, go to Step 19.

If there is not a note from the Manual Payment Team

  • phone the Manual Payment Team
  • ask them if the payment was issued
    then
  • go to Step 19.

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Step 19

Note: A payment cannot be issued until it has first been authorised on the tax credit computer. However, it is possible for a payment to be authorised but not issued.

If the payment was authorised but not issued, go to Step 20.

If the payment was authorised and issued, go to Step 21.

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Step 20

Phone the Manual Payment Team

  • ask them to issue the payment
  • update Household Notes with the message PR36 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

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Step 21

Check PARS to determine if the payment has been cashed. For how to do this, use TCM1000412.

If the payment has not been cashed, go to Step 22.

If the payment has been cashed, go to Step 23.

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Step 22

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Cancel and replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR14. For how to do this, use TCM1000001.
  • take no further action.

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Step 23

Check if the encashment amount of the missing cashcheque matches the original issue amount. For how to do this, use TCM1000412.

If the encashment amount does not match the original issue amount, go to Step 24.

If the encashment amount does match the original issue amount, go to Step 25.

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Step 24

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
    (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • update Household Notes with the message PR39 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 25

Request sight of the missing cashcheque and the cashcheque issued before and the cashcheque issued after from Finance. For how to do this, use TCM1000413.

  • set an action date on the claim for two weeks to allow time for Finance to send you the cashcheques you have requested. For how to do this, use TCM1000008.
    then
  • go to Step 26.

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Step 26

Check if the signature on the cashcheque matches the one on the TC241.

If the signature on the cashcheque matches the one on the TC241, go to Step 27.

If the signature on the cashcheque does not match the one on the TC241, go to Step 28.

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Step 27

Do not replace the payment

  • send letter TC1098 to the customer
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
    (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • update Household Notes with the message PR40 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 28

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 29

Note: The Manual Payment Team will update Household Notes whenever they send a manual payment out to a customer.

Take a screen print of the original note on Household Notes from the Manual Payment Team

  • note the R92 number from Household Notes
  • note the cashcheque serial number
    Note: You will need the R92 and cashcheque serial number when you check PARS.
  • go to Step 30.

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Step 30

Check PARS to determine if the payment has been cashed by the customer. For how to do this, use TCM1000412.

If the payment has not been cashed by the customer, go to Step 31.

If the payment has been cashed by the customer, go to Step 32.

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Step 31

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Cancel and replace the missing payment by following the guidance in TCM0212060.

  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 32

Check if the encashment amount of the missing cashcheque matches the original issue amount. For how to do this, use TCM1000412.

If the encashment amount does not match the original issue amount, go to Step 33.

If the encashment amount does match the original issue amount, go to Step 36.

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Step 33

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
  • ask them if they need you to send the case to them
    then
  • go to Step 34.

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Step 34

If the Compliance Officer tells you to send the case to them

  • replace the payment for the customer by following the guidance in TCM0212060.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
    then
  • go to Step 39.

If the Compliance Officer tells you not to send the case to them, go to Step 35.

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Step 35

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 36

Request sight of the missing cashcheque and the cashcheque issued before and the cashcheque issued after from Finance. For how to do this, use TCM1000413.

  • set an action date on the claim for two weeks to allow time for Finance to send you the cashcheques you’ve requested. For how to do this, use TCM1000008.
    then
  • go to Step 37.

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Step 37

Check if the signature on the cashcheque matches the one on the TC241.

If the signature on the cashcheque does match the one on the TC241, go to Step 38.

If the signature on the cashcheque does not match the one on the TC241, go to Step 39.

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Step 38

Do not replace the payment

  • send letter TC1098 to the customer
  • update Household Notes with the message PR40 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

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Step 39

Note: Remember to reduce the replacement amount if a hardship amount has already been given to the customer.

Replace the payment for the customer by following the guidance in TCM0212060.

  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

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Step 40

Check Household Notes to determine if the case has been referred to Compliance.

If the case has been referred to Compliance and there is a Compliance message, go to Step 41.

If the case has not been referred to Compliance, go to Step 42.

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Step 41

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • take no further action.

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Step 42

Check Household Notes to determine if the customer’s missing payment request was dealt with.

Note: This would be by either replacing the payment for the customer or, after consideration, refusing the customer’s request for a replacement payment.

If we have dealt with the customer’s missing payment request, go to Step 43.

If we have not dealt with the customer’s missing payment request, go to Step 44.

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Step 43

If the missing payment was replaced for the customer, go to Step 45.

If the missing payment was not replaced for the customer

  • send letter TC1098 to the customer
    then
  • go to Step 45.

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Step 44

Pass the case to your line manager who will follow up why the case has not yet been processed

  • update Household Notes with the message PR51 from TCM0168040. For how to do this, use TCM1000001.
  • take no further action.

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Step 45

Note: You must inform Payment Fraud team if a customer has not received a replacement payment.

Phone Payment Fraud team using your locally held contact details

  • explain to the Compliance Officer why you have contacted them
  • ask them if they want you to send the case to them
    then
  • go to Step 46.

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Step 46

If the Compliance Officer wants you to send the case to them, go to Step 47.

If the Compliance Officer does not want you to send the case to them, go to Step 48.

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Step 47

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • take no further action.

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Step 48

Update Household Notes with the message PR50. For how to do this, use TCM1000001.

  • take no further action.