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HMRC internal manual

Tax Credits Manual

Renewals - miscellaneous (A-F): Renewals - attachments - P60

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020
  • you have the correct user roles to follow this guidance
  • you are in the correct MU. Use TCM0322460 for the correct MU number
  • you have form P60 or a ‘week 52’, ‘month 12’ or ‘four-week period 13’ payslip (referred to in this guidance as the ‘earnings evidence’) attached to an Annual Declaration
  • you have already followed the guidance in TCM0262120
  • the Annual Declaration has not yet been captured.

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 are dealing with a new work item, go to Step 4

If you are not dealing with a new work item, go to Step 2

Step 2

If you are dealing with an expired action date, go to Step 19

If you are not dealing with an expired action date, go to Step 3

If you are dealing with a reply about a salary sacrifice scheme, go to Step 5

Step 3

If you are dealing with a reply to a previous enquiry and the customer has provided all the details you need to complete the renewal, go to Step 21

Note: This will include any information you noted when you followed the guidance in TCM0262120

If you are dealing with a reply to a previous enquiry and the customer has not provided all the details you need to complete the renewal, go to Step 16

If an enquiry has been returned RLS, follow the guidance in TCM0184200

Step 4

Check for the following on the tax credits computer

  • employer’s name
  • employer’s address
  • PAYE reference number. For how to do this, use TCM1000251
    then
  • make a note of the employer’s name, address and PAYE reference number for customer 1 and customer 2 to ensure the work details on the earnings evidence match with the information you have on the tax credits computer
    Note: Work details held on the computer that differ from the earnings evidence may suggest that there is more than one job or a change of circumstances that has not been reported yet. A ‘BR’ tax code suggests there is more than one job and a ‘WK1’ or ‘M1’ tax code suggest a new job.

If the earnings evidence does match the details held on the tax credits computer, go to Step 5

If the earnings evidence does not match the details held on the tax credits computer

  • make a note of the details that do not match as you will need to query this with the customer
  • go to Step 5

Step 5

If the customer has told you they have joined a salary sacrifice scheme, go to Step 6

If the customer has not told you they have joined a salary sacrifice scheme, go to Step 9

Step 6

Note: New Rules regarding Salary Sacrifice came into effect 6 April 2017. Where the customer gives up salary or a cash allowance in exchange for a benefit in kind, they may see an increase in their taxable income. 

If the Salary sacrifice agreement is dated on or after 6 April 2017 go to Step 7

If the Salary sacrifice agreement is dated on or before 5 April 2017 go to Step 8

Step 7

Check if the salary sacrifice scheme is for any of the following

Note: The following are not affected by the new rules and will continue to be included in the salary sacrifice scheme.

  • childcare vouchers or a nursery place paid for by the employer
  • pension provision
  • pension advice
  • cycle to work scheme (the provision of a cycle and safety equipment)
  • ultra-low emission cars

If the salary sacrifice scheme is one of the above, go to Step 9

If the salary sacrifice scheme is not one of the above, follow the guidance in TCM0044060

Step 8

Check if the salary sacrifice scheme is for any of the following

  • childcare vouchers or a nursery place paid for by the employer
  • pension provision
  • medical insurance/ life assurance or critical illness cover
  • dental cover
  • additional holiday entitlement
  • cycle to work scheme (the provision of a cycle and safety equipment)
  • a bus pass for public bus travel
  • a car parking pass for parking at or near their place of work
  • a single mobile phone with no transfer of property in the phone.

Note: Where the agreement is for cars (not ultra-low emission cars), accommodation or school fees, it will retain the current treatment until the earlier of the end, renewal or variation of the contract or April 2021

If the salary sacrifice scheme is one of the above, go to Step 9

If the salary sacrifice scheme is not one of the above, follow the guidance in TCM0044060

Step 9

Check the earnings evidence for any adjustments that will need to be deducted from the gross income before you enter the income on the tax credits computer

the adjustments that need to be deducted are

  • Statutory Maternity Pay
  • Statutory Adoption Pay
  • Statutory Paternity Pay
  • Additional Statutory Paternity Pay
  • Statutory Shared Parental Pay
    then
  • go to Step 10

Step 10

Check on the tax credits computer to determine if there’s a new baby in the household. For how to do this, use TCM1000330

Note: A new baby will have been born in the tax year covered by the earnings evidence.

If there is not a new baby in the household and you are dealing with a reply about a salary sacrifice scheme, go to Step 13

If there is not a new baby in the household, go to Step 11

If there is a new baby in the household

  • make a note of this because you will need to check whether the customer has any of the deductions from Step 9 that do not appear on the earnings evidence
  • go to Step 11

Step 11

Subtract any of the deductions in Step 9 from the earnings evidence

  • make a note of the new income figure
  • compare the new income figure on the earnings evidence with the income on the Annual Declaration.

If the income figures are the same, go to Step 13

If the income figures are not the same

  • make a note of the details that do not match because you will need to query this with the customer
  • go to Step 12

Step 12

Check for the following

  • there is no income figure provided on the Annual Declaration
  • the income figure on the Annual Declaration is actually the ‘Net’ pay figure on the earnings evidence
  • the income figure on the Annual Declaration is actually a deduction figure - for example, ‘tax paid’ or ‘national insurance’
    Note: For more information, use TCM0116060
  • the income figure on the Annual Declaration is clearly a weekly or monthly figure
  • the income figure on the Annual Declaration is pence declared as pounds
    Note: Pence declared as pounds could look like this example: Income of £509,372.00 on the Annual Declaration and £5093.72 on the earnings evidence.
  • the income figure on the Annual Declaration of nearly pence as pounds
    Note: Nearly pence as pounds would look like the following example: Income of £1,482,965.00 on the Annual Declaration and £14,829.65 on the earnings evidence.

If any of these apply

  • make a note of the earnings evidence gross income
  • go to Step 13

If none of these apply

  • follow the guidance in TCM0118240
  • make a note of the details that do not match because as you will need to query this with the customer
  • go to Step 13

Step 13

Check if the Annual Declaration is incomplete. For how to do this, use TCM1000003

If the Annual Declaration is complete, go to Step 21

If the Annual Declaration is incomplete

  • make a note of the missing details because as you will need to query this with the customer
  • go to Step 14

Step 14

Check if the customer has answered the Statement of Circumstances question correctly on the Annual Declaration.

Note: A correctly answered Statement of Circumstances question will only have one box ticked.

If the customer has correctly answered the Statement of Circumstances question, go to Step 15

If the customer has not correctly answered the Statement of Circumstances question

  • make a note of this as you will need to query this with the customer
  • go to Step 15

Step 15

Consider any information already provided and any notes you have made to decide whether you need to contact the customer.

If you do need to contact the customer, go to Step 16

If you do not need to contact the customer, go to Step 21

Step 16

Phone the customer for the information you need to resolve the queries. Follow the guidance in TCM0094080

Note: If you contact the customer regarding their income figure, consider the guidance in TCM0116060

If you are not able to contact the customer, go to Step 19

If you are able to contact the customer but were not able to obtain all the information you need to resolve the queries, go to Step 18

If you are able to contact the customer and were able to obtain all the information you need to resolve the queries, go to Step 17

Step 17

Did the customer report a change of circumstances?

If the customer did not report a change of circumstances, go to Step 21

If the customer did report a change of circumstances

  • make the change. Follow the guidance in TCM0042260
  • return to this guidance if you have been able to make the change
    then
  • go to Step 21

Step 18

Tell the customer to phone the Tax Credits Helpline within the next 14 days with the information you need to resolve the queries

Note: Remind the customer that all the information is required.

  • set a clerical BF date for 14 days in the future
  • update Household Notes with the message SL32 from TCM0172060. For how to do this, use TCM1000001.

If you are advised by your manager to send the customer a written enquiry in addition to this action, go to Step 19

If you are not advised by your manager to send the customer a written enquiry

  • take no further action.

Step 19

If you have not already written to the customer for the information you need to resolve the queries or the customer has replied but has not provided all the information you need

  • send form TC664 to the customer. For how to do this, use TCM1000009
    Note: In red ink, write your building, location/floor and group at the bottom left corner of the form to ensure that the returned form will be sent to your team.
  • set a clerical BF date for 14 days in the future
  • update Household Notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have already written to the customer for the information you need to resolve the queries but have not yet sent a reminder, go to Step 20

If you have already sent a reminder to the customer for the information you need to resolve the queries, go to Step 21

Step 20

Check if the RLS signal has been set. For how to do this, use TCM1000105

If the RLS signal has been set

  • follow the guidance in TCM0184200 then return to this guidance
  • check Household Notes to determine what enquiry was sent to the customer and the reasons why it was sent. For how to do this, use TCM1000067
    Note: If you have not already done so, check for any other information that may be relevant to the enquiry.
  • send reminder form TC829R to the customer
  • set a clerical BF date for a further 16 days in the future
  • update Household Notes with the message SL25 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If the RLS signal has not been set

  • check Household Notes to determine what enquiry was sent to the customer and the reasons why it was sent. For how to do this, use TCM1000067
    Note: If you have not already done so, check for any other information that may be relevant to the enquiry.
  • send reminder form TC829R to the customer
  • set a clerical BF date for a further 16 days in the future
  • update Household Notes with the message SL25 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

Step 21

If you have been able to determine the customer’s correct income figure capture the income figure on the tax credits computer

Note: Deduct any of the following (shown on the earnings evidence) from the income figure if you have not already done so

  • any amounts up to £100 for Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay
  • any company benefits
  • any self-employed income
  • any other household income.
    Note: If you enter the details on the Annual Declaration onto the tax credits computer without the income figure, it will create an entry on the Unprocessed S17 work list.
  • capture the other details from the Annual Declaration on the tax credits computer. For how to do this, use TCM1000015
  • go to Step 22

If you have not been able to determine the customer’s correct income figure

  • capture the other details from the Annual Declaration on the tax credits computer. For how to do this, use TCM1000015
  • go to Step 22

Step 22

Return the earnings evidence to the customer using form TC1038

  • close the document on DMS. For how to do this use TCM1000037
  • update Household Notes with the message SW27 from TCM0172080. For how to do this, use TCM1000001.
  • take no further action.