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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Payment - work lists: Ceased Employment work list

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • you have the correct user roles to follow this 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 / Data Security Team for advice.

Note: Any changes of employment or hours must be recorded on losses prevented.

Background

Note: Before making any changes, you must follow the guidance in TCM0042260.

Function PROCESS CHANGES FROM THE EMPLOYMENTS FRAMEWORK will populate the Ceased Employment work list with cases that show

  • the customer has ceased employment
  • P45 details have been entered
  • a customer has had two NINOs merged
  • the employer has ceased business
  • the employer scheme has been cancelled.

Function PROCESS CHANGE OF CIRCUMSTANCES will populate the Ceased Employment work list with cases that show new employment for a new or existing household, but the new employer is recorded on the Employer Framework as ceased or cancelled.

Note: Cases will only be recorded on the work list, that have current entitlement to WTC that is not nil.

You must work the cases on the Ceased Employment work list to obtain the correct employment details for the customer and then delete the work item.

Once the case has been settled it will be manually removed from the work list.

The work list provides the following information for each work item

  • creation date
  • reference
  • name
  • action date.

This work list also provides a signal to indicate the reason for entry

  • (C) for ceased employment cases
  • (P) or (‘space’) for P45 or under threshold cases
  • (M) for merged tax payer NINO on tax credits computer cases
  • (X) for ceased or cancelled employer schemes.

You can access the following functions direct from this work list

  • Function MAINTAIN HOUSEHOLD NOTES
  • Function VIEW APPLICATION
  • Function VIEW EMPLOYER DETAILS.

Required Information

Obtain the required information from the customer

  • employer reference number

Note: This is always in the format of three numbers followed by several numbers or letters such as 456/JHG or 213/4H or 852/J1234

  • employer’s full trading name
  • employers payroll office address

Note: Ensure these details are for the head office payroll and not the local address of where they work.

Guidance

Step 1

Before making any changes to the claim check Household Notes to ensure there is no compliance or complex activity, you must follow the guidance in TCM0138020

then

If you are dealing with a new case, go to .

If you are dealing with a returned TC664, go to .

If you are dealing with an RLS case, go to .

If you are dealing with an expired action date, go to .

If there is a Household Note stating the case is BF’d awaiting to apply the ’28 day effective date’ for the relevant 4 week run on purposes and a referral has been sent

  • delete the work list item

Note: Contact should be made via the phone if applicable before issuing any further correspondence follow guidance in TCM0094080.

  • take no further action.

Step 2

Use Function MAINTAIN WORKLIST

  • select ‘Ceased Employment Work list’ from the drop down menu in the Work list Type field
  • select the office or unit you want from the drop down list in TCM0322460 if the one you want is not already displayed in the field
  • sort and filter as directed
  • go to .

Step 3

Select the first work list item and select the ‘Details’ button

  • make a note of the information held in the ‘Details’ screen and the signal of the work list item

If the end date showing in the ‘Details’ screen is either 00/00/00, 31/12/9999 or any future dates,

  • these can be worked as normal
  • go to .

Step 4

Use file, next function and select and select AMEND APPLICATION. You will be taken to the Amend Application Summary Screen.

If the claim is terminated and the employment end date in the ‘Details’ screen or the ‘28 day effective date’ is after the date of termination

  • delete the work item
  • go to .

If the claim is showing a household breakdown and the employment end date in the ‘Details’ screen or the ‘28 day effective date’ is after the date of breakdown

  • delete the work item
  • go to .

If the claim is not terminated, not showing a household breakdown or the end date of the ‘Details’ screen is prior to the terminated / household breakdown date

  • go to the applicant work details screen for the relevant customer
  • go to .

Step 5

If NTC is more up to date than the details held on the ‘Details’ screen do not make any change to the employment details

  • delete the work item
  • go to .

If NTC is not more up to date than the details held on the ‘Details’ screen, go to .

Step 6

If the employer reference is still live on Real Time Information (RTI)

Note: If there is a discrepancy with the income and it will have an impact on the customers award, go to as contact would be required.

  • delete work list item
  • go to .

If there is an end date on RTI for the employer held on the tax credits computer and no other employment is held

  • end the employment. For how to do this, use TCM0048000
  • go to .

If there is an end date on RTI for the employer held on the tax credits computer and RTI shows new employment

  • amend the employment details on the tax credit computer with the changes provided. For how to do this, use TCM0048000
  • go to .

If there is no end date on RTI for the employer held on the tax credits computer but there is a new employer on RTI, go to .

If the customer has not responded to the TC664 to confirm employment discrepancy, follow the guidance in TCM0036150.

Step 7

If the end date from the employment ‘Details’ screen is within 28 days of the new employment starting

  • amend the employment details on the computer with the changes provided. For how to do this, use TCM0048000
  • go to .

If the end date from the ‘Details’ screen is not within the 28 days of the new employment starting

  • contact the customer. For how to do this, use TCM0094080 then return to this guidance

Note: If you are working expired BF and the customer has not replied go to .

  • go to .

Step 8

Contact the customer to confirm their employment details. Follow the guidance in TCM0094080.

If you are able to contact the customer successfully, go to .

If you are unable to contact the customer successfully

  • issue the TC664 to the customer to confirm the correct employment details
  • BF for 30 days, BF work list for 35 days
  • transfer to the BF MU 286121
  • go to .

Step 9

Check to see if a TC664 has been issued regarding employment details and whether the customer has replied.

If no reply to TC664, go to .

If the Household Notes show that the customer has already contacted us and has provided details of the change

  • check to see if details have been applied
  • details already updated, delete work list item
  • go to .

If the Household Notes show that the customer has already contacted us and the change has not been applied, go to .

Step 10

Check RTI for the employment details

If there are employment details, go to .

If there are no employment details, go to .

Step 11

Remove the employer reference number and re-input all other employment details

  • add Household Note: TCMZ: unable to clarify correct employer reference. Customer confirm details held are correct. Deleted employ ref (XXX/XXXX) TCO/WASH/CEW

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

  • delete work list item

Note: hold NINO for 48 hrs to verify Rule 7 verification.

  • take no further action

Step 12

If the customer has responded, go to .

If the customer has not responded

  • end the relevant customers employment using the date from the ‘Details’ screen

Note: If the end date in the ‘Details’ screen is prior to the start date held on NTC or it is 00/00/00, 31/12/9999, 05/04/2012 or any future dates end the employment using the Creation date of the work item.

  • delete work item
  • go to .

Step 13

If the customer has confirmed the employment details are correct, go to .

If the customer confirms the employment has ceased or their employment details have changed, go to .

Step 14

Use Function AMEND APPLICATION

  • amend the employment details on the computer with the changes provided. For how to do this, use TCM0030000.

Note: If you have not been able to obtain the employer reference number, leave this field blank and update employer name and address.

  • delete work list item
  • go to .

Step 15

Check the status of the claim

If you are dealing with a joint claim where only one customer is marked RLS

  • BF work list item for 180 days
  • transfer to MU 249906
  • take no further action.

If you are dealing with

  • a single claim where the customer is marked RLS
  • a joint claim and both customers are marked RLS
  • where correspondence has been returned RLS for a single or both customers in a joint household
  • suspend payment on the claim
  • follow the guidance in TCM1000232
  • Bf work list item for 85 days or 12 weeks
  • transfer to MU 249906
  • go to .

Step 16

  • add a Household Note explaining your action. For how to do this, use TCM0152080

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

  • take no further action.