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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas: international: change in employment (UK or EEA) international change of circumstances

Checklist

Before you follow this guidance make sure

  • you have the correct user roles. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits and Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles and Access Catalogue’ from the related links menu
  • you are in the correct MU. See TCM0322460 for the correct MU number
  • you have access to the tax credit computer system (NTC)
  • you have arrived at this guidance from TCM0304050 Post-award change of circumstances - lead-in.

Required information

A notification that a UK national who is receiving tax credits under the EC regulations has changed employment in the UK for employment in another EEA member state. This notification can be received from the customer, by letter or by telephone call. Not all the information below may be required

  • the date previous employment ended
  • the date new employment started
  • name and address of the new employer
  • PAYE reference for the new employer
  • number of hours worked in new employment
  • estimated income for the current year
  • country the customer is paying Class 1 or Class 2 National Insurance Contributions to
  • where the customer has been sent to the EEA by a UK employer for work, establish for how long
  • a E101 / E102 / A1 certificate if the customer has one.

Background

Some change of circumstances, for example a change in residency or employment involving movement between Member States of the European Economic Area (EAA) results in the UK becoming competent to pay family benefits (that is, CTC and Child Benefit) in full.

A customer may have earnings that are above the Lower Earnings Limit (LEL) but below the Primary Threshold (PT) and Class 1 NI contributions are not being paid. In these instances the customer is actually treated as having paid Class 1 NI contributions. The customer will satisfy the relevant entitlement conditions for UK family benefits to be paid under EC regulations.

An employment check is necessary to determine whether the EC regulations can be applied.

Where the earnings of the customer, or their partner, fall

  • above the LEL
  • below the PT, and
  • Class 1 NI contributions have not been paid

they should be treated as having paid Class 1 NI contributions and regarded as being subject to UK legislation.

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 that you have the required information.

If you have all the required information, go to .

If you do not have the required information, contact the customer. For how to do this, use TCM0094000.

If you have issued a TC664 to obtain the required information

  • BF for 30 days
  • take no further action.

If a reply to the form TC664 is received, go to .

If no reply to the form TC664 is received, go to .

If you are dealing with expired BF for an E-form / SED, go to .

If you are dealing with a returned / non-returned E-Form / SED, go to .

Step 2

Check to see if it is a complex case. For how to do this, use TCM0284140.

If the case is a complex case,go to .

If the case is not a complex case, go to .

Step 3

Check to see if there is a link to the UK through residency or employment using the EEA competency or family benefits decision tree. For how to do this, use TCM1000257.

If there is still a link to the UK through residency or employment after the change of circumstances, go to .

If there is no link to the UK through residency or employment after the change of circumstances

  • complete a SEES calculation up to the end of the complex claim date. For how to do this, use TCM1000490 
  • complete a manual calculations form. For how to do this, use TCM1000491
  • end the complex claim. For how to do this, use TCM0284080
  • complete and issue manual award notice to customer. For how to do this, use TCM1000408
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send case to storage. For how to do this, use TCM0074060
  • take no further action.

Step 4

Check to see if the change will affect the right to reside decision. To do this use the information you have and the Right to Reside test, using the Rules Based Service. For how to do this, use TCM1000035.

If the change affects the right to reside decision, go to .

If the change does not affect the right to reside decision, go to .

Step 5

Check to see if the customer meets the right to reside conditions. For how to do this use the information you have and the Rules Based Service. For how to do this, use TCM1000035.

If the customer meets the right to reside conditions, go to .

If the customer does not meet the right to reside conditions

  • complete a SEES calculation up to the end of the complex claim date. For how to do this, use TCM1000490
  • complete a manual calculations form. For how to do this use TCM1000491
  • end the complex claim. For how to do this, use TCM0284080 
  • complete and issue manual award notice to customer. For how to do this, use TCM1000001 
  • update the International Group Database IGDB. For how to do this TCM1000408 
  • take no further action.

Step 6

Check to see if the case will still be complex. For how to do this, use TCM0284140.

If the case is still complex, go to .

If the case is no longer complex, go to .

Step 7

Check to see if the change of circumstances affects competency. Follow the guidance in the ‘B&C EEA competence for family benefits Decision Tree.’ For how to do this, use TCM1000257.

If the change of circumstances affects competency, go to .

If the change of circumstances does not affect the competency, go to .

Step 8

Note: Consider supplement up to the end of the month in which the change of circumstances occurred. Follow guidance in TCM0284140.

If the competency has switched from the Other Member State (OMS) to the UK

  • send E-form / SEDs to OMS

Note: To determine which E-form / SEDs to select follow the guidance in TCM1000263.

  • pay full rate from the beginning of the month, following the change
  • pay supplement from the date of change to the day before full rate payment
  • establish if the change can be made. Follow the guidance in TCM0042280
  • consider a SEES calculation and complete the manual SEES calculation form. For how to do this, use TCM1000490
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update appropriate Household Note. For how to do this, use TCM1000001 
  • update the IGDB. For how to do this, use TCM1000408
  • consider 4 week run-on guidance. For how to do this, use TCM0052000 
  • delete unprocessed CoC work list item. For how to do this, use TCM0140060 
  • work International verification failures. For how to do this, use TCM1000020 
  • process S17. For how to do this use, TCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send case to storage. For how to do this, use TCM0074060 
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

If the competency has switched from the UK to the OMS

  • send E-Form / SEDs to the OMS

Note: To determine which E-form / SEDs to select follow the guidance in TCM1000263.

  • consider sending TC697 to the customer
  • BF for 2 months, unless dealing with the Polish authorities in which case BF for 3 months
  • take no further action.

Step 9

Check to see if the customer has started work abroad.

If the customer has started work abroad, go to .

If the customer has not started work abroad, go to .

Step 10

Check to see if you have the required information from the E-Form / SEDs.

If you have the required information

  • pay full rate until the end of the month
  • consider supplement from the beginning of the next month

Note: Use the daily exchange rate published on the first day of the month immediately prior to the month when the provision must be applied. When conversions are complete continue with normal supplement/reimbursement action.

  • consider 4 week run-on guidance. For how to do this, use TCM0052000
  • consider gaps in entitlement guidance. For how to do this, use TCM0052000.

If you do not have the required information

  • issue TC1096 or TC1097 on SEES as appropriate
  • end responsibility for child or do not add child. For how to do this, use TCM1000243 
  • go to .

Step 11

Check to see if the customer who lives in the UK is employed.

If the customer living in the UK is employed

  • manually calculate a single WTC only award. For how to do this, use TCM1000089 
  • take no further action.

If the customer living in the UK is not employed

  • fail residency. For how to do this, use TCM0078600
  • end claim
  • delete any unprocessed CoC worklist items. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, use TCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, use TCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

Step 12

Check to see if there is further entitlement.

If there is further entitlement

  • update NTC with employee details. For how to do this, use TCM1000355 
  • complete a SEES calculation up to the end of the complex claim date. For how to do this, use TCM1000089
  • complete manual calculations form. For how to do this, use TCM1000491
  • end complex claim. For how to do this, use TCM0284080
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • update the IGDB. For how to do this, use TCM1000408
  • send papers to storage. For how to do this, use TCM0074060
  • take no further action.

If there is no further entitlement

  • complete a SEES calculation up to the end of the complex claim date. For how to do this, use TCM1000089
  • complete a manual calculations form. For how to do this, use TCM1000491
  • end complex claim. For how to do this, use TCM0284080 
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • update the IGDB. For how to do this, use TCM1000408
  • send papers to storage. For how to do this, use TCM0074060
  • take no further action.

Step 13

Check to see if you have the required information from the list at the top of this page.

If you have the required information, go to .

If you do not have the required information

  • issue TC664 on SEES with relevant questions to the customer. For how to do this, use TCM1000009
  • BF case for 30 days
  • take no further action.

Step 14

Check to see if there is a link to the UK through residency or employment.

If there is a link to the UK through residency or employment, go to .

If there is no link to the UK through residency or employment

  • end the household claim
  • update NTC with employment details. For how to do this, use TCM1000355
  • consider 4 week run-on action guide, use TCM0052000 
  • consider Gaps in entitlement action guide, use TCM0287000 
  • delete any unprocessed CoC work list items. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000001
  • process S17. For how to do this, use TCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, use TCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

Step 15

Check to see if you need to consider the right to reside. For how to do this, use TCM0128140.

If you need to consider the right to reside, go to .

If you do not need to consider the right to reside, go to .

Step 16

Check to see if the right to reside condition is met. For how to do this, use TCM0287260.

If the right to reside condition is met, go to .

If the right to reside condition is not met

  • end the household claim
  • fail residency. For how to do this, use TCM0128000 
  • update NTC with employment details. For how to do this, use TCM1000355 
  • delete any unprocessed CoC work list items. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, useTCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, useTCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

Step 17

Check competency. Follow the guidance in the ‘B&C EEA Competence for family benefits decision tree’. For how to do this, use TCM1000257.

If the UK is competent, go to .

If the OMS is competent

  • issue E-Form / SEDs

Note: To determine which E-form / SEDs to select, follow the guidance in TCM1000114.

  • consider sending TC697 to the customer
  • BF for 2 months, unless dealing with the Polish authorities in which case BF for 3 months
  • take no further action.

Step 18

Check to see if this is a Crown Servant case. For how to do this, use TCM1000518.

If this is a Crown Servant case, follow the guidance in TCM0062360.

If this is not a Crown Servant case

  • set manual suspension payment marker for all customers. For how to do this, use TCM1000335 
  • set complex marker. For how to do this, use TCM1000136
  • go to .

Step 19

Check whether Cross Award Recovery (CAR) was underway before the claim became complex. For how to do this, use TCM1000117

If CAR was not underway before the claim became complex, go to .

If CAR was underway before the claim became complex, go to .

Step 20

Use Cross Award Summary screen to identify relevant years. For how to do this, use TCM1000561 

  • set appeal markers on relevant years to send the overpayment back to the originating year. For how to do this, use TCM1000444
  • update household note with message ON19 from TCM0166040. For how to do this, useTCM1000001 
  • BF the claim for one day to allow the overpayment to be sent back overnight.

On expiry of this BF period

  • remove any Appeal markers you have set. For how to do this, use TCM1000453 
  • go to .

Step 21

  • complete a SEES calculation. For how to do this, use TCM1000089
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update the IGDB. For how to do this, use TCM1000408
  • apply the change. For how to do this, use TCM0042280
  • delete unprocessed CoC work list items. For how to do this, use TCM0054080
  • action International verification failures. For how to do this, use TCM1000247
  • process S17. For how to do this, use TCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, use TCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

Step 22

Check to see if the OMS has returned the E-Form / SEDs.

If the OMS have not replied, go to .

If the OMS have replied

  • consider supplement from date of OMS award. Follow guidance in TCM0284140 
  • go to .

Step 23

Check to see of there is a designatory change.

If there is a designatory change

  • process the change. For how to do this, use Business As Usual guidance (BAU). Follow the guidance in TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, use TCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, use TCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

If there is not a designatory change

  • process the change. For how to do this, use TCM0042280
  • consider recalculating the award. Follow guidance in TCM1000480 
  • delete the unprocessed CoC worklist item. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, useTCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • consider 4 week run-on. For how to do this use, TCM0052000 
  • consider gaps in entitlement. For how to do this use, TCM0052000 
  • take no further action.

Step 24

Consider if this is a Crown Servant case. For how to do this, use TCM1000518.

If this is a Crown Servant case, follow the guidance in TCM0062360.

If this is not a Crown Servant case, go to .

Step 25

Consider the right to reside. For how to do this use the information you have and the Rules Based Service. For how to do this, use TCM1000035.

If you need to consider the right to reside, go to .

If you do not need to consider the right to reside, take no further action.

Step 26

Check to see if the right to reside condition is met. For how to do this, use TCM1000035.

If the customer has the right to reside, return to the work list and transfer the case to another MU. For how to do this, use TCM1000304.

If the customer does not have the right to reside,

  • end the household claim
  • update NTC with employment details. For how to do this, use TCM1000355 
  • delete any unprocessed CoC work list items. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, useTCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, use TCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.

Step 27

If the OMS return the E-Forms / SEDs by expiry of the BF period,go to .

If the OMS fail to return the duplicate E-forms / SEDs by expiry of the BF period

  • issue TC10960 or TC1097 on SEES as appropriate and end responsibility for the child or do not add the child. For how to do this, use TCM1000243 
  • go to .

If the OMS fail to return the E-Forms / SEDs by expiry of the BF period

  • issue duplicate E-Forms / SEDs

Note: To determine which E-Forms / SEDs to select follow the guidance in TCM1000114.

  • BF for 2 months, unless dealing with the Polish authorities in which case BF for 3 months
  • take no further action.

Step 28

Finalise the customers claim. To do this

  • end the household claim
  • update NTC with employment details. For how to do this, use TCM1000355 
  • delete any unprocessed CoC work list items. For how to do this, use TCM0140060
  • action any International verification failures. For how to do this, use TCM1000020
  • process S17. For how to do this, useTCM1000123
  • update appropriate Household Note. For how to do this, use TCM1000001

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

  • send papers to storage. For how to do this, useTCM0074060
  • consider CBO referral. For how to do this, use TCM0074140
  • take no further action.