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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Renewals - work lists (Unprocessed): Unprocessed S17 work list - Incomplete, Unsigned or No PY-1

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020
  • you follow the guidance in TCM0262120
  • 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

Check the correct award version details. For how to do this, use TCM1000007.

  • make a note of the correct award version
  • go to Step 2.

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Step 2

If the work item details shows that the Annual Declaration is Unsigned only, go to Step 3.

If the work item details show that the Annual Declaration is Unsigned and Incomplete, go to Step 3.

If the work item only shows that the Annual Declaration is incomplete, go to Step 3.

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Step 3

If you are dealing with a new work item, go to Step 7.

If you are not dealing with a new work item, go to Step 4.

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Step 4

Note: If you are working the Expired BF MU, check Digital Mail Service (DMS) to see if there is any returned correspondence from the customer. For how to do this, use TCM1000037.

If you have received the RDC image scan for a (?) case, go to Step 12.

If you have issued a TCC50 and the action date has expired, go to Step 47.

If you have issued a TC664 and the action date has expired, go to Step 48.

If you have issued a TC1221 and the action date has expired, go to Step 61.

If you are dealing with a reply to a TCC50, go to Step 53.

If you are dealing with a reply to a TC664, go to Step 54.

If you are dealing with a reply to a TC1221, go to Step 61.

If the enquiry has been returned RLS (Returned Letter Service), go to Step 5.

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Step 5

Search for a new address. For how to do this, follow the guidance in TCM0184200 and then return to this step.

If a new address is not found, go to Step 6.

If a new address is found

  • check Household Notes and make a note of the original letter that was issued. For how to do this, use TCM1000001
  • go to Step 35.

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Step 6

Check the customer’s 1SD. For how to do this, use TCM1000002.

If the status of the renewal is PY not Finalised and after the customer’s 1SD, follow the guidance in TCM0264160 from Step 2.

If the status of the renewal is PY not Finalised and on or before the customer’s 1SD

  • suspend the customers provisional payments. For how to do this, use TCM1000232
  • transfer the work item to the ‘Pending CY Term’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • set the relevant action date. For how to do this, use TCM1000008
  • update Household Notes with the message SL42 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

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Step 7

Access the relevant declaration details. For how to do this, use TCM1000006.

If the message ‘There are no outstanding declarations for this household’ displays, go to Step 8.

If the message ‘This barcode has been superseded’ displays, follow the guidance in TCM0256020.

If the message ‘Income requested on S17 for both PY-1 and PY’ displays, go to Step 9.

If a message does not display, go to Step 9.

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Step 8

Check how many declarations have been received. For how to do this, use TCM1000049.

If there is more than one Annual Declaration, follow the guidance in TCM0272140.

If there is only one Annual Declaration, return to TCM0262120 at Step 7.

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Step 9

Check and make a note of any of the following information. For how to do this, use TCM1000005

  • work details for customer 1 and/or customer 2 including hours worked history details
  • income and benefit details for customer 1 and/or customer 2 including Qualifying benefit history details

Note: RTI figures may have been obtained and used as part of the renewal. If figures have been used on the renewal then you can view any figures used. For how to do this, use TCM1000011.

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Step 10

Check if there are any question mark (‘?’) entries in any of the income fields.

If there are not any question mark entries, go to Step 12.

If there are any question mark entries, go to Step 11.

Note: A question mark (‘?’) is input into any of the income fields by Rapid Data Capture or a Fujitsu operator when the entry within that field is unreadable or the customer has stated their income was £63,000 or more.

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Step 11

Check the Access to DWP Data System (ADD), NPS and SA systems for any updated income information.

Note: Only check SA systems for PY-1.

Note: When information is obtained from one of the systems, attempt to call the customer by phone to discuss any income discrepancies between income declared and income obtained on the system.

If you can contact the customer by phone

  • obtain all the missing information
  • go to Step 12.

If you cannot contact the customer by phone

  • issue a TC1221 to the customer
  • update Household Notes with the appropriate message. For how to do this, use TCM1000001.
  • set an action date for 4 weeks in the future. For how to do this, use TCM1000008.

If no updated information is obtained from the systems

  • do not remove the entries
  • request the image scan of the annual declaration. For how to do this, use TCM0074060
  • set an action date for 7 days in the future. For how to do this, use TCM1000008.

Note: The RDC image should be received within 7 days. If it has not, you should extend the action date until it is received.

  • transfer the work item to the ‘Unprocessed S17 - Incomplete BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • take no further action.

Step 12

Check and note if the customer has answered the personal circumstances question correctly.

Note: The personal circumstances or Statement of Circumstances are known as ‘SOC correct’ on the computer system and will be identified by a tick in the box within the ‘SOC correct’ field. Only one of the boxes should be ticked.

If only one SOC box has been ticked

Note: This is not the reason for the Incomplete work list item.

If no SOC boxes have been ticked

  • make a note of this as you may need to confirm the correct answer with the customer if you have other queries that you need to contact them about
  • go to Step 13.

Note: If this is the only Incomplete reason then you can accept that the customer’s circumstances are correct.

If both SOC boxes have been ticked

  • make a note as you will need to confirm the correct answer with the customer
  • go to Step 13.

Note: Check if any Incompatibilities exist on the claim once the Incomplete reasons have been resolved as these will need to be investigated and actioned before finalisation can occur.

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Step 13

Check if any of the PY or PY-1 income fields have any inappropriate zeros.

Note: This includes zeros by themselves in any fields other than self employed or the other income fields. This also includes any decimal points followed by zeros or figures, that is, £20000(.00) or £20000(.95).

If there are any inappropriate zeros entered in the income fields

  • make a note of any inappropriate zero entries
  • go to Step 14.

If there are not any inappropriate zeros entered in the income fields, go to Step 14.

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Step 14

Check ADD to establish if there was a Qualifying benefit for the whole of the award period.

Note: Qualifying benefits are Income Support, Income-based JSA, Income-based ESA and Pension Credit.

Note: This can be a combination of the above benefits, for either customer, as long as the whole of the award period is covered.

Note: The award period refers to the full period that the Tax credits were in payment. For example, if the claim started 01-12-2012 and continued to the end of the tax year, the 2012-2013 award period would be 01-12-2012 to 05-04-2013.

If ADD shows that there is no Qualifying benefit in payment for any of the award period, go to Step 20.

If ADD shows that there was a Qualifying benefit in payment for the household, for the whole of the award period, go to Step 15.

If ADD shows that there was a Qualifying benefit in payment for the household, for part of the award period, go to Step 17.

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Step 15

Check if the benefit details on ADD match those on Correction and Capture Renewal Declaration. For how to do this, use TCM1000005 and TCM1000006.

If the Qualifying benefit details on ADD match those in Correction and on the Annual Declaration, go to Step 20.

If the Qualifying benefit details on ADD do not match those in Correction and on the Annual Declaration, go to Step 16.

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Step 16

If the Qualifying benefit details are not showing in Correction or on the Annual Declaration

  • update the Qualifying benefit details using the information from ADD go to Step 20.

If the Qualifying benefit details held in Correction do not match the Qualifying details held on ADD

  • make a note that you will need to tick the relevant Qualifying benefit details box in Capture Renewal Declaration
  • go to Step 20.

If the Qualifying benefit details are not declared in Correction but are declared on the Annual Declaration

  • update Correction with the relevant Qualifying benefit details so that they match ADD. For how to do this, use TCM1000005

Note: Where the Qualifying benefit started prior to the start of the tax year, then use 06-04-PPYY as the start date.

If the Qualifying benefit details have not been declared on the Annual Declaration, but are showing in Correction and you have confirmed the information on ADD

  • make a note that if you are directed to process the annual declaration you will need to tick the relevant Qualifying benefit box in Capture Renewal Declaration
  • go to Step 20.

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Step 17

Check if the Qualifying benefit is still in payment on ADD.

If the Qualifying benefit is not in payment on ADD, go to Step 18.

If the Qualifying benefit is still in payment on ADD, go to Step 19.

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Step 18

If the Qualifying benefit details are not recorded in either Correction or on the Annual Declaration

  • make a note that there is no need to update any benefit details
  • go to Step 20.

If the Qualifying benefit details are recorded on the Annual Declaration

  • make a note that you will need to remove the tick from the Qualifying benefit details within Capture Renewal Declaration
  • go to Step 20.

If the Qualifying benefit details are in Correction and the benefit has now ceased

  • remove the tick from the Qualifying benefit box in Capture Renewal Declaration. For how to do this, use TCM1000006
  • consider and make a note of the end date to enter in Correction. For how to do this, follow the guidance in TCM0042260
  • apply the change you have noted. Follow the appropriate Changes guidance
  • go to Step 20.

If the customer has Qualifying benefit details in Correction for PY and there is no evidence of Qualifying benefits on ADD, you will need to update Correction and the Annual Declaration in Capture Renewal Declaration

  • remove the tick from the Qualifying benefit box in Capture Renewal Declaration. For how to do this, use TCM1000006
  • consider and make a note of the end date to enter in Correction. For how to do this, follow the guidance in TCM0042260
  • apply the change you have noted. Follow the appropriate Changes guidance
  • go to Step 20.

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Step 19

If the customer has declared a Qualifying benefit on their Annual Declaration

  • apply the changes, as appropriate. For how to do this use TCM0042260. Use the received date of the Annual Declaration as the date you were notified of the change

Note: You must consider the normal backdating rules whenever you make a change to PY and/or CY.

  • remove the tick from the Qualifying benefits field in Capture Renewal Declaration. For how to do this, use TCM1000006
  • go to Step 20.

If the customer has not previously notified us of being on a Qualifying benefit, either in Correction or on their Annual Declaration

  • make a note you will need to contact the customer over the phone or on a TC664 to confirm the Qualifying benefit details

Note: If you are directed to process the Annual Declaration you do not need to tick the relevant Qualifying benefit box in Capture Renewal Declaration.

If the customer has qualifying benefit details in Correction but not on their Annual Declaration

  • apply the changes as appropriate. For how to do this, use TCM0042260

Note: You must consider normal backdating rules whenever you make a change to PY and/or CY.

Note: If you are directed to process the Annual Declaration you do not need to tick the relevant Qualifying benefit box in Capture Renewal Declaration.

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Step 20

Check ADD to see if there are any Taxable social security benefits (TSSB), other income or state benefits showing for PY or PY-1.

If there are no TSSBs, other income or state benefits showing, go to Step 21.

If there are TSSBs, other income or state benefits showing, and the totals for either customer showing in ADD, is higher than the customer has declared

  • make a note of the details
  • go to Step 21.

If there are TSSBs, other income or state benefits showing and the totals for either customer showing in ADD is the same or lower than the customer has declared, go to Step 21.

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Step 21

Check if either customer has a live employment record for PY showing on NTC. For how to do this, use TCM1000005.

If the customer has a live employment record on NTC for PY, go to Step 22.

If the customer does not have a live employment record on NTC for PY, go to Step 23.

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Step 22

Note: Only check SA system for PY-1 Incompletes

Check the National Insurance and Pay As You Earn service (NPS), SA system or FBI e Filestore, for both customers.

If NPS, SA or FBI e Filestore shows a live employment/Self Employment record for either customer for PY, go to Step 23.

If NPS, SA or FBI e-Filestore does not show a live employment/Self Employment record for either customer for PY

  • make a note that you will need to issue a TCC50 to the customer querying their employment/Self Employment details
  • go to Step 28.

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Step 23

Check NPS or FBI e Filestore to verify employment income for both customers for PY and PY-1 if appropriate. Check SA for self-employment income for both customers for PY-1 Incomplete.

Note: Only Check Self Assessment for PY-1 Self Employment income.

Note: RTI figures may have been obtained and used as part of the renewal. If figures have been used on the renewal then you can view any figures used. For how to do this, use TCM1000011.

Note: If the Tax credit claim started in PY then you are not required to perform a National Minimum Wage (NMW) check for PY-1 income.

Note: To check employment income always use the P14 summary screen, where there is live employment on P14 but no income, check the Real Time Information screen (RTI) for any income details.

If either customer has declared no income or Qualifying benefits and there is no evidence of employment/Self Employment income or benefits on NTC, SA or NPS, go to Step 28.

If either customer has declared no income and there is no evidence of employment/Self Employment income on NPS/SA and no employment details on NTC, but either customer is in receipt of a Qualifying benefit for the full award period or in receipt of any TSSBs, go to Step 28.

If either customer has declared self-employment income and self-employment details are present in Correction, go to Step 28.

If the employment income held on NPS for either customer is equal to or higher than that declared on their Annual Declaration

  • make a note of the income figure
  • go to Step 24.

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Step 24

Check NTC for any work details for either customer. For how to do this, use TCM1000012.

If there are work details for either customer on NTC, go to Step 25.

If there are no work details for either customer on NTC, go to Step 26.

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Step 25

Access the NMW Calculator in SEES to check for national minimum wage details.

If the income held on NPS or FBI e Filestore is equal to or higher than the equivalent national minimum wage for the hours worked, go to Step 28.

If the income held on NPS or FBI e Filestore is less than the equivalent national minimum wage for the hours worked

  • make a note that you will need to issue a TCC50 to query the hours worked by either customer
  • go to Step 28.

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Step 26

Check if the employment shown on NPS or FBI e Filestore is still live.

If the employment is still live

  • make a note of the income found
  • make a note that you will need to contact the customer by phone or issue a TC664 to query either customers employment details
  • go to Step 28.

If the employment is not live

  • make a note of the income found and that the income will need to be included on the TC1221
  • make a note that you may need to issue a TC1221 to either customer
  • go to Step 28.

If there is no income data showing but there is live employment or the income showing is lower than that declared by either customer on their Annual Declaration, go to Step 27.

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Step 27

Check if either customer has declared any employment income for the relevant year (or years).

If either customer has declared employment income for the relevant year (or years), go back to Step 25.

If either customer has not declared any employment income for the relevant year (or years)

  • make a note that you will need to contact the customer by phone or on a TC664 for their employment income
  • make a note that if there is live employment details showing you will need to contact the customer by phone or on a TC664 for their employment details
  • go to Step 28.

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Step 28

Check if either customer has declared an untraced TSSB, Other Income, State Benefit, Employment Income or Benefit in Kind, within £500.00 of an undeclared traced income.

If either customer has declared an untraced amount within £500

  • update correction on NTC with the traced income for the correct customer and disregard the untraced declared amount
  • go to Step 29.

If either customer has not declared a traced amount within £500, go to Step 29.

Step 29

Check the notes you have made and decide if customer contact is appropriate.

If you need to contact either customer by telephone, follow the guidance in TCM0094080

Note: If you need to challenge the income figure with either customer, follow TCM0322175 to consider any allowable deductions from income

If you do not need to contact either customer, go to Step 32.

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Step 30

If you were unable to contact the customer

  • make a note that you will need to issue a TC664 Renewals for the missing self employment/employment details
  • make a note that you will need to issue a TC1221 for income discrepancies
  • go to Step 32.

If you were able to contact the customer but all the information was not obtained

  • make a note that you will need to issue a TC664 Renewals for the missing information
  • go to Step 32.

If you were able to contact the customer and obtain all the missing information, go to Step 31.

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Step 31

If the customer has provided self-employment details, employment details, another change of circumstances or stated that their SOC was incorrect

  • apply the changes. For how to do this, use TCM0042260.

Note: You must consider the normal backdating rules whenever you make a change to PY and/or CY.

  • then return to this guidance and continue through this step.

If the customer has provided employment income details, go back to Step 23.

If the customer tells you that they did not have any income or benefits for the whole of the award period and we have confirmed this in NPS or ADD, and we have no employment or self-employment details on NTC

  • we will need to action their claim by showing that they received £1 in other income in PY
  • this is an administrative action and will not affect their entitlement
  • update Household notes with the message SL30 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 36.

If the customer agrees with the income we hold on the system from NPS/ADD (or SA for PY-1 cases), go to Step 35.

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Step 32

If you have identified the Incomplete reasons, are satisfied with the income declared by either customer and have all the information required to process the Annual Declaration, go to Step 33.

If you have identified the Incomplete reasons and have not previously noted that you need to issue TC664 or a TCC50, go to Step 33.

If you have identified the Incomplete reasons and have previously noted that you need to issue TC664 or a TCC50, go to Step 34.

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Step 33

Consider any TSSBs and employment/Self Employment income you have obtained from NPS, SA, FBI e-Filestore or ADD against what either customer has declared on their Annual Declaration. Use TCM0322175 to consider any allowable deductions from income.

If any of the TSSB or employment/Self Employment income figures obtained from these sources is more than what either customer has declared on their Annual Declaration, and the difference is £500 or more, but you have identified that the difference is due to allowable deductions from income

  • make a note that you can process the Annual Declaration with the income details that the customer has provided
  • go to Step 36.

If any of the TSSB or employment/Self Employment income figures obtained from these sources is more than what either customer has declared on their Annual Declaration, and the difference is £500 or more, and you have identified that there are no allowable deductions from income

  • make a note of the new TSSB, employment/Self Employment income figure you have obtained, and any other income figure details declared by either customer that you need to update
  • make a note that you will need to issue a TC1221 to the customer whose income figure you have found
  • go to Step 35.

If any of the TSSB or employment/Self Employment income figures obtained from these sources is more than what either customer has declared on their Annual Declaration, and the difference is less than £500

  • make a note that you can process the Annual Declaration with the income details that the customer has provided
  • go to Step 36.

If any of the TSSB or employment/Self Employment income figures obtained from these sources is equal to or less than what either customer has declared on their Annual Declaration

  • accept the figure that the customer has declared on their Annual Declaration
  • go to Step 36.

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Step 34

Consider any TSSBs and employment income you have obtained from NPS, FBI e Filestore or ADD against what either customer has declared on their Annual Declaration.

If any of the TSSB or employment income figures obtained from these sources is £500 or higher than what either customer has declared on their Annual Declaration

  • make a note that you will need to issue a TCC50 with the new TSSB, employment and any other income figures that you have obtained
  • go to Step 35.

If any of the TSSB or employment income figures obtained from these sources is equal to or less than £500 from what either customer has declared on their Annual declaration

  • make a note that if you are not issuing a TC664 for missing income, or a TCC50 for income below NMW for hours worked, then you will accept the customers income
  • go to Step 35.

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Step 35

Using the notes that you have made, issue the required letter to the customer.

If you have noted that you need to issue a TC664

  • complete and send a TC664 Renewals ensuring all the relevant questions are asked. For how to do this, use TCM1000009

Note: For every TC664 issued always select the stopping tax credit payments paragraph.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you need to issue a TCC50 only

  • complete and send a TCC50 ensuring all the relevant questions are asked. For how to do this, use TCM1000478.

Note: This could be any information either customer has already indicated on their Annual Declaration, or that you have obtained from our systems, relating to other income and/or TSSBs.

Note: If necessary this should also detail that, our records show that their employment ended in PY.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL39 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you need to issue a TC664 and a TCC50

Note: You will only use a TCC50 if in previous steps you did not note that customer contact is required. If you have noted throughout the previous steps that a TCC50 and TC664 are required, you should include all relevant information on the TC664. Do not issue both letters.

  • complete and send TC664 Renewals ensuring all the relevant questions are asked. For how to do this, use TCM1000009.

Note: For every TC664 issued always select the stopping tax credit payments paragraph.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you need to issue a TC1221 only

Note: RTI figures may have been obtained and used as part of the renewal. If figures have been used on the renewal then you can view any figures used by following TCM1000011.

Note: Do not update ‘Correction’ or ‘Capture Renewal Declaration’ with any revised figure you have obtained, as you are contacting the customer.

  • issue a TC1221. For how to do this, use TCM1000124
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you need to issue a TC1221 and a TC664

Note: You will need to issue a TC664 only. You should include all relevant information from the TCC50 on the TC664.

Note: Do not update Correction or Capture Renewal Declaration with any revised figure you have obtained. As you are contacting the customer, you will need to ask for this information on the TC664.

  • complete and send TC664 Renewals ensuring all the relevant questions are asked. For how to do this, use TCM1000009.

Note: For every TC664 issued always select the stopping tax credit payments paragraph.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you need to issue a TC1221 and a TCC50

Note: You will need to issue a TCC50 only. Where you have noted that you need to issue a TC1221, you will need to include these questions within the TCC50.

  • complete and send TCC50. For how to do this, use TCM1000478
  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL39 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If you have noted that you do not need to issue any letter

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Step 36

Update the Annual Declaration in Capture Renewal Declaration. For how to do this, use TCM1000006.

If the customer confirmed their income/benefits details for PY and/or PY-1

Note: If the customer has provided you with an income figure that is not a yearly income figure, multiply the income figure provided to make it a yearly amount. For how to do this, use TCM1000462.

  • capture the correct declaration details. For how to do this, use TCM1000015

Note: RTI figures may have been obtained and used as part of the renewal. If figures have been used on the renewal then you can view any figures used by following TCM1000011

Note: Make sure that the PY or PY-1 details are entered into the relevant customer 1 and/or customer 2 fields.

Note: Renewals information provided on household notes is information provided by the customer.

  • remove any question marks (?) and replace them with the information that the customer confirms it should have been
  • update Household Notes with the appropriate message (or messages) SL28 and SL29 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 37.

If the customer confirmed that the income we have obtained from NPS/ADD (SA for PY-1 cases is correct for PY and/or PY-1

  • enter the figures on the Annual Declaration via Capture Renewal Declaration. For how to do this use TCM1000015
  • remove any question marks (?) and replace them with the information that the customer confirms it should have been
  • update Household Notes with the appropriate message (or messages) SL28 and SL29 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 37.

If the customer confirmed that they did not have any income for PY and/or PY-1 and that they were or were not in receipt of any benefits for the whole of the award period and are still eligible at the end of the year

  • treat it as no income for the whole of that award on the ‘Income/Benefits’ screen
  • enter ‘£1’ in the PY Other Income field
  • enter ‘0’ (zero) in the PY-1 Other Income field
  • update Household Notes with the appropriate message (or messages) SL30 and SL31 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 37.

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Step 37

If there are not any inappropriate zeros or decimals entered in the income fields, go to Step 38.

If there are any inappropriate zeros entered in the income fields

  • delete the zeros/decimals from the appropriate monetary fields

Note: Do not remove any zero in the Self-employed field if self-employed income is zero or a loss.

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Step 38

If you noted earlier that either customer confirmed that they were in receipt of a Qualifying benefit for the full award period

  • ensure the tick is entered into the relevant qualifying benefit box
  • go to Step 39.

If you noted earlier that either customer were in receipt of a Qualifying benefit for the full award period on Correction and you confirmed this in ADD

  • ensure the tick is entered into the relevant qualifying benefit box
  • go to Step 39.

If you noted earlier that either customer were not in receipt of a Qualifying benefit for the full award period

  • ensure the tick is removed from the relevant qualifying benefit box
  • go to Step 39.

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Step 39

If the customer has previously ticked both the ‘Yes’ and ‘No’ checkboxes in answer to the Declaration SOC correct checkboxes

  • remove the incorrect tick so that the customer’s correct answer to the question remains on the ‘Declaration’ screen
  • go to Step 40.

If the customer has only ticked one of the Declaration SOC correct checkboxes, go to Step 40.

If the Declaration SOC correct box has no tick in either the ‘Yes’ or ‘No’ checkboxes

  • enter a tick in the ‘Yes’ checkbox
  • go to Step 40.

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Step 40

If the signature box on the ‘Declaration’ screen is ticked, go to Step 41.

If the signature box on the ‘Declaration’ screen is not ticked

  • select the ‘Yes’ signature box (or boxes)
  • go to Step 41.

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Step 41

Complete the ‘Change Source’ field with the source of the new information on the ‘Declaration’ screen and select ‘Process’.

Note: Select ‘Paper’ if there was no customer contact made or a letter was issued. Select ‘telephone’ if customer was contacted by phone. Select ‘Digital’ if the declaration was received through the digital portal.

If you receive a warning message, go to Step 44.

If you do not receive a warning message, go to Step 43.

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Step 42

Manage finalise the award.

If there is an Appeal marker present

If there is no Appeal marker present

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Step 43

Check if the work item is still on the Unprocessed S17 work list. For how to do this, use TCM1000004.

If the work item is not showing on the work list, go to Step 46.

If the work item is still showing for the same work list reason

  • refer the case to your TALLO to establish why the claim has not finalised.

Note: Where your TALLO cannot establish the reason why the claim has not finalised, refer the case to your Technical Team for assistance.

Note: Where your TALLO can establish the reason why the claim has not finalised, make amendments as necessary to process the declaration.

If the work item is showing with the reason of ‘Appeal’ only

  • update Household Notes with the message SJ05 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 45.

If the work item is showing with any reason other than ‘Appeal’

  • transfer it to the appropriate MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household Notes with the appropriate message from the notes you made
  • go to Step 46.

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Step 44

If you are presented with the warning message ‘PY-1 Incompatibility failure exists against this declaration. Do you wish to override?’

  • select ‘No’.

Note: An entry will be created on the ‘Unprocessed S17’ work list with a reason of PY-1 Incompatible.

If you are presented with any RTI incompatibility warning messages

  • follow the guidance in TCM0272210

If any other messages appear

  • select ‘Yes’ or ‘OK’ as appropriate
  • go to Step 46.

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Step 45

Renew CY without finalising PY. For how to do this, use TCM1000018

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Step 46

Update Household Notes with

  • the message SL29 from TCM0172060. For how to do this, use TCM1000001

Note: You will only need to enter this note if you have not already done so.

  • any action that you have not already recorded. For how to do this, use TCM1000001
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.

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Step 47

Use NPS, FBI e Filestore and/or ADD to check what income/benefits are to be used.

  • using those details, update Correction with any relevant changes. For how to do this, use TCM1000005.

Note: In a joint claim ensure that both customers’ details are updated.

If NPS showed the employment ended in PY-1 and the Tax credit award was in payment in PY-1 or earlier

  • end employment from 06/04/PPYY
  • complete a TC648 with the details of the change
  • send the information to Change of Circumstances/Compliance area to consider any S18 action
  • go to Step 59.

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Step 48

Check Household notes to see if either customer has not responded to our request for information. For how to do this, use TCM1000067.

  • check the notes to determine what enquiry was made and the reasons for that enquiry
  • check the notes for an RLS message. Where there is an RLS note, follow the guidance in TCM0184200
  • check if the missing information is recorded on Household Notes.

If the missing information is on Household notes, go to Step 49.

If the missing information is not on Household notes, go to Step 52.

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Step 49

Check if the customer’s provisional payments have been suspended. For how to do this, use TCM1000368.

If the suspension marker is set and the customer has provided all the information

  • lift the suspension marker on the customer’s payments. For how to do this, use TCM1000327
  • go to Step 50.

If the suspension marker is not set, go to Step 50.

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Step 50

If the customer did not report a change of circumstances when providing all the details, go to Step 51.

If the customer did report a change of circumstances when providing all the details

  • follow the guidance in TCM0042260

then

  • return to this guidance and go to Step 51.

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Step 51

Check the income/benefits that either customer has provided on the TC664 against the income/benefits on NPS, FBI e Filestore and ADD.

Note: Ensure the income declared and the income held on NPS or FBI e Filestore meets NMW rates. Use the NMW tables that are listed within the Customer Advisor Guide (CAG) Toolkit.

If the total household income declared is less than the income obtained from NPS, FBI e-Filestore or ADD, but the difference is £500 or more, go back to Step 12.

If the total household income declared is less than the income obtained from NPS, FBI e-Filestore or ADD, but the difference is less than £500 and it satisfies NMW, go to Step 58.

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Step 52

Check the customers 1SD and the status of the renewal. For how to do this, use TCM1000002 and TCM1000153.

If the status of the renewal is PY not finalised and after the customer’s 1SD

  • follow the guidance in TCM0264160 from Step 2.

If the status of the renewal is PY not finalised and on or before the customer’s 1SD

  • suspend the customer’s provisional payments. For how to do this, use TCM1000232
  • transfer the work item to the ‘Pending CY Term’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • set the relevant action date. For how to do this, use TCM1000008
  • update Household notes with the message SL42 from TCM0172060. For how to do this, use TCM1000001
  • take no further action

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Step 53

Check if the work item shows the S17 is unsigned as well as Incomplete

  • make a note that you may need to tick the signature box

If the customer has replied to the TCC50, they have provided acceptable evidence of their income/details, and you are satisfied with the evidence, go to Step 58.

If the customer has replied to the TCC50, they have provided evidence of their income/details, but you are not satisfied with the evidence, go to Step 58.

If the customer has replied to the TCC50, they have provided evidence of their income/details but you are unsure if the evidence is acceptable

  • pass the details to your TALLO who will contact the Local Compliance officers for instructions
  • BF the case for 2 weeks until the TALLO advises you what action to take
  • take no further action.

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Step 54

Check if the customer has provided all the details needed to complete the S17.

If the customer has returned the TC664 but not provided all the details needed to complete the S17 and this is the first TC664 we have issued

  • re-issue the TC664 Renewals. For how to do this, use TCM1000009.

Note: For every TC664 issued always select the stopping tax credit payments paragraph.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • if the work item is not already in the Incompletes BF MU, then transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL24 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If the customer has returned the second TC664 but still has not provided all the details needed to complete the S17, go back to Step 52.

If the customer has returned the TC664 confirming that the SOC are correct and this was the only query

  • make a note of this
  • go to Step 58.

If the customer has returned the TC664 and has provided all the missing information, go to Step 55.

Note: You may be able to obtain the information by contacting the customer on the telephone if this is appropriate.

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Step 55

Check if the customer’s provisional payments have been suspended. For how to do this, use TCM1000368.

If the suspension marker is set and the customer has provided all the information

  • lift the suspension marker on the customer’s payments. For how to do this, use TCM1000327
  • go to Step 56.

If the suspension marker is not set, go to Step 56.

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Step 56

If the customer did not report a change of circumstances when providing all the details, go to Step 57.

If the customer did report a change of circumstances when providing all the details

  • follow the guidance in TCM0042260

then

  • return to this guidance and go to Step 57.

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Step 57

Check the income/benefits that either customer has provided on the TC664 against the income/benefits on NPS, FBI e Filestore and ADD.

Note: RTI figures may have been obtained and used as part of the renewal. If figures have been used on the renewal then you can view any figures used by following TCM1000011

Note: Ensure the income declared and the income held on NPS or FBI e-Filestore meets NMW rates. Use the NMW tables that are listed within the Customer Advisor Guide (CAG) Toolkit.

If the total household income declared is less than the income obtained from NPS, FBI e-Filestore or ADD, but the difference is £500 or more and it satisfies NMW

  • update the income details in Correction. For how to do this, use TCM1000005
  • go to Step 59.

Note: Do not amend the details via Capture Renewal Declaration.

If the total household income declared is less than the income obtained from NPS, FBI e-Filestore or ADD, but the difference is less than £500 and it satisfies NMW, go to Step 58.

If the total household income does not satisfy NMW for hours worked and/or NPS shows that the employment has ended

  • issue a TCC50 to either customer making reference to the income/and or employment details you have obtained. For how to do this, use TCM1000478
  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • if the work item is not already in the Incomplete BF MU, then transfer the work item to the ‘Unprocessed S17 - Incompletes BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message SL39 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

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Step 58

Update the Annual Declaration with the information provided/obtained. For how to do this, use TCM1000015

  • delete the zeros/decimals from the appropriate monetary fields.

Note: Do not remove any zeros in the self-employed field if self-employed income is zero or a loss.

  • delete any inappropriate question marks if applicable
  • tick ‘Yes’ in the signature box if you made a note of this in Step 52
  • tick ‘Yes’ in the SOC box if you made a note of this in Step 53
  • update Household notes with the message SL29 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 60.

If you are presented with any RTI incompatibility warning messages

  • follow the guidance in TCM0272210.

If the customer confirmed that they did not have any income or receive any Qualifying benefits for the whole award period and this was verified as correct following NPS, FBI e-Filestore or ADD checks

  • treat it as no income for the whole of that award on the ‘Income/Benefits’ screen
  • enter ‘£1’ in the PY Other Income field
  • enter ‘0’ (zero) in the PY-1 Other Income field
  • update Household Notes with the appropriate message SL30 from TCM0172060. For how to do this, use TCM1000001
  • go to Step 60.

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Step 59

Manage finalise the award.

If there is an Appeal marker present

If there is no Appeal marker present

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Step 60

Check if the work item is still on the Unprocessed S17 work list. For how to do this, use TCM1000004.

If the work item is not showing on the work list, take no further action.

If the work item is still showing for the same work list reason

  • refer the case to your TALLO to establish why the claim has not finalised

Note: Where your TALLO cannot establish the reason why the claim has not finalised, refer the case to your Technical Team for assistance.

Note: Where your TALLO can establish the reason why the claim has not finalised, make amendments as necessary to process the declaration.

  • take no further action

If the work item is showing with the reason of ‘Appeal’ only

  • renew CY without finalising PY. For how to do this, use TCM1000018
  • update Household Notes with the message SJ05 from TCM0172060. For how to do this, use TCM1000001
  • take no further action.

If the work item is showing with any reason other than ‘Appeal’

  • transfer it to the appropriate MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household Notes with the appropriate message from the notes you made
  • take no further action.

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Step 61

Check the figures we have applied on the TC1221 letter and see what explanation the customer has provided for the income discrepancy.

Note: This could be because the customer pays into a pension scheme, or has deducted any maternity, adoption or paternity pay, or made gift aid contributions. This is not a complete list. For a list of allowable deductions from income, follow the guidance in TCM0322175.

If the customer has replied to the TC1221 and provided a satisfactory explanation about the income discrepancy

  • update the figures the customer has provided onto the Annual Declaration and process, for how to do this use TCM1000015
  • update Household Notes with the message SL43 from TCM0172020, for how to do this use TCM1000001
  • issue a TC629 from SEES, for how to do this use TCM1000124
  • take no further action.

If the customer has replied to the TC1221 but not provided an explanation about the income discrepancy

  • update Correction using information held on our system. For how to do this, use TCM1000016
  • update Household Notes with the message SL43 from TCM0172020. For how to do this, use TCM1000001
  • issue a TC629 from SEES, for how to do this use TCM1000124
  • take no further action.

If the customer has not replied to the TC1221 and the action date has expired

  • update Correction using information held on our system. For how to do this, use TCM1000016
  • update Household Notes with the message SL43 from TCM0172020. For how to do this, use TCM1000001
  • issue a TC629 from SEES. For how to do this use TCM1000124
  • take no further action.

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Step 62

Check the customer’s 1SD. For how to do this, use TCM1000002.

If today’s date is on or before 1SD

  • update the income in Correction. For how to do this, use TCM1000016
  • update Household Notes with the message SL47 from TCM0172060. For how to do this, use TCM1000001.
  • take no further action.

If today’s date is after 1SD

  • complete a TC648 with details of the revised income and the explanation of why it is different
  • refer the TC648 over to the Change of Circumstances team to consider making the changes using ‘Establish if a change can be made’ guidance.
  • update Household Notes with the message SL46 from TCM0172060. For how to do this, use TCM1000001.