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HMRC internal manual

Tax Credits Manual

Specialist areas - Complex: Complex cases - manual renewal (Info)

All customers who fall into one of the complex case categories are required to complete an S17 Declaration (form TC603D) so that their previous year (PY) award can be finalised and their claim for the current year (CY) can be renewed.

In the case of cross-border and overseas family supplement claims, the customer will also be required to complete form TC828 giving information about benefits the family has received from the Other Member State (OMS).

As the manual correspondence checkbox has been selected on all complex cases, automated S17 Notices will be forwarded to the appropriate team for any necessary amendment prior to issue. The notices will be sent to the International Complex / UK Complex Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

The Notices will be received at random by the team between April and the end of June together with a covering form TC648. The related work list item appearing on the Manual Correspondence work list will also be transferred to the team’s Management Unit (MU).

The S17 Notices must be manually issued by the end of June to fall in line with the automated issue of S17 Notices. This will allow customer three months in which to complete and return their S17 Declarations before the 1st Specified Date (1SD).

The team will make provisional manual payments of Working Tax Credit (WTC) and/or Child Tax Credit (CTC) at the PY rates pending the return of the S17 Declaration and form TC828 (if appropriate).

When the customer returns the fully completed forms, the team will manually recalculate the PY award if the customer’s income has decreased or if it has increased by more than £25,000.

Only the amount of increase that exceeds £25,000 will be included in the recalculation of the PY award. The team will also take into consideration any overpayments or underpayments which have occurred during PY.

Note: The Income disregard amount from the 6 April 2013 has decreased from £10,000 to £5,000.

Note: From the 6 April 2016 the income increase disregard will decrease from £5,000 to £2,500.  

The team will manually calculate entitlement for CY and will offset any provisional payments made at PY rates. They will also issue manual award notices and take all necessary action to finalise and renew the award on the computer.

Payments must continue to be manually made for all complex cases until further guidance is issued.

There is an Action Guide for this subject, select TCM0284260 to access it