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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Specialist areas - international claims: manually paying WTC upfront - E400 series forms or SEDs returned from Other Member State

Reasons not to follow this guidance

You do not need to follow this guidance if

  • this is not a complex case
  • the status of the award is not ‘Award Issued’
  • the award periods will extend into previous year 1 (PY-1) or earlier.

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • the case is a complex case in which Working Tax Credit (WTC) has been considered and either calculated upfront or disallowed prior to verification of the children by the other member state (OMS)
  • you have access to the International Group Database (IGDB) and know how to obtain and update customer information on it
  • you have the correct user roles to follow this guidance
  • the status of the award is ‘Award Issued’
  • the payments are suspended or the award for WTC is a nil award
  • the award periods will not extend past PY-1 and earlier
  • you are in the correct Management Unit (MU). Use TCM0322460 for the correct MU number

and, either replies from the OMS have been received and assessed after following the guidance in TCM0305100 or the action date set after paying or disallowing WTC upfront has expired.

Background

This guidance is for staff dealing with European Economic Area (EEA) nationals who are migrant or cross border workers and have been paid WTC only whilst waiting for verification of the family. When a reply is received, you must assess the information to re-calculate the tax credits award and include or exclude any appropriate elements of both Child Tax Credit (CTC) and WTC.

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.

Note: Remember, when dealing with any referrals from Compliance, to update the Compliance officer by phone once your actions are complete and give the information they ask for.

Note: When considering an award of family benefit for a customer who is newly self employed there will be a requirement to make a further check to see if the customer has paid their class 2 bill which is due to be paid on the return of a SED or E-Form prior to paying CTC.

Step 1

If you are dealing with a reply from the OMS to your enquiries, go to .

If you are dealing with an expired BF date and there has been no reply to your enquiries from the OMS or the customer, go to .

If you are dealing with a reply from the customer to your enquiries regarding a change of address or a change in the OMS, go to .

If you are dealing with a reply from a customer following an enquiry about their self employment or a request for evidence that they have paid their Class 2 NI contributions bill, go to .

If you are dealing with an expired BF date following a request to the customer enquiring about their self employment or evidence that they have paid their Class 2 NI contributions bill, go to .

If you are dealing with a reply from the customer to your enquiries regarding the rest of the family moving to the UK, go to .

If you have already calculated any CTC top up supplements, go to .

Step 2

Check the manual file to determine who issued the E400 forms or SEDS.

If the Child Benefit Office (CBO) issued the E400 forms or SEDS, go to .

If the Tax Credit Office (TCO) issued the E400 forms or SEDS, go to .

Step 3

Check the IGDB to determine

  • whether a reply from the OMS has been received
  • when the E400 forms or SEDS were issued
  • whether duplicate E400 forms or SEDS have been issued
  • whether it has been more than three months since the last E400 forms or SEDS were issued.

If a reply has been received

  • contact CBO to tell them we need the information on the E400 forms or SEDS. Follow the guidance in TCM0304150
  • go to .

If duplicate E400 forms or SEDS have not been issued and three months have not elapsed

  • set a BF date of two weeks from today’s date on the manual file
  • return the file to the manual BF run
  • take no further action.

If duplicate E400 forms or SEDS have not been issued and three months have elapsed

  • contact CBO to tell them that three months have elapsed since the issue of the last E400 forms or SEDS and they need to check whether any duplicate forms need to be issued. Follow the guidance in TCM0304150
  • make a note on the manual file of the telephone number and the name of the person you have spoken to in CBO
  • set a BF date of two weeks from today’s date on the manual file
  • return the file to the manual BF run
  • take no further action.

If duplicate E400 forms or SEDS have been issued before the three months have elapsed

  • set a BF date of two weeks from today’s date on the manual file
  • return the file to the manual BF run
  • take no further action.

If duplicate E400 forms or SEDS have been issued and three months have elapsed, go to .

Step 4

Contact CBO to check that a form TC1096 has been issued to the customer. Follow the guidance in TCM0287080.

Note: A form TC1096 is used to advise the customer in the UK that they have not had a reply to the E401 or SED and asks the customer to chase it up themselves.

If TC1096 has been issued, and a reply has not been received and more than three months have elapsed since the E400 forms or SEDS were issued, contact your TALLO for advice on what to do.

If TC1096 has been issued, and a reply has not been received and three months have not elapsed since the E400 forms or SEDS were issued

  • set a BF date on the manual file to correspond with the CBO three month BF date
  • return the file to the manual BF run
  • take no further action.

If TC1096 has not been issued

  • issue the TC1096 to the customer
  • set a BF date of three weeks from today’s date on the manual file
  • return the file to the manual BF run
  • take no further action.

Step 5

Check that the correct E400 forms or SEDS have been issued to the correct OMS. Follow the guidance in TCM0305100

  • check the manual file and Household Notes to determine if the customer has notified us of a change of address for the family in the OMS
  • check the date of the change
  • check the manual file, Household Notes and the IGDB to determine if duplicate E400 forms or SEDS have been issued since the change. For how to do this, use TCM1000067.

If duplicate E400 forms or SEDS have been issued and there is a change of address since the forms were issued, go to .

If duplicate E400 forms or SEDS have been issued and there is not a change of address since the forms were issued, go to .

If duplicate E400 forms or SEDS have not been issued and there is a change of address since the first set of E400 forms or SEDS were issued, go to .

If duplicate E400 forms or SEDS have not been issued and there is not a change of address since the first set of E400 forms or SEDS were issued, go to .

Step 6

Check the manual file and Household Notes for any information to show if the change of address affects which area authority within the OMS you need to contact for information about the family composition.

If there is information to show which area authority you need to contact about the family composition, go to .

If there is no information to show which area authority you need to contact about the family composition, go to .

Step 7

Contact the customer in the UK to tell them we need to confirm whether we have contacted the correct OMS. Follow the guidance in TCM0094080.

Note: If you can not contact the customer by phone, issue form TC664 to ask them for the information and set a 30 day BF date to await their reply.

If the customer replies to your enquiry, go to .

If the customer does not reply to your enquiry, go to .

Step 8

If the information shows a different area authority or OMS to the one we have already contacted, go to .

If the information does not show a different area authority or OMS to the one we have already contacted, go to .

Step 9

Issue duplicate E400 forms or SEDS to the OMS. Follow the guidance in TCM0305100

  • update the IGDB to show that duplicate E400 forms or SEDS have been issued
  • update the manual file to show that duplicate E400 forms or SEDS have been issued
  • set a BF date of two or three months on the manual file, depending on which OMS has been contacted
  • take no further action.

Step 10

Issue new E400 forms or SEDS to the correct OMS. Follow the guidance in TCM0305100

  • update the IGDB to show that new E400 forms or SEDS have been issued
  • update the manual file to show that new E400 forms or SEDS have been issued
  • set a BF date of two or three months on the manual file, depending on which OMS has been contacted
  • take no further action.

Step 11

Check that we have sent the correct E400 forms or SEDS to the correct OMS. As part of your check ensure that the customer details on the SED are correct. Follow the guidance in TCM0305100.

If we have sent the correct E400 forms or SEDS to the correct OMS and all the details are correct, contact your TALLO for advice on what to do.

If we have not sent the correct E400 forms or SEDS to the correct OMS, go back to .

Step 12

Check the status of the award. For how to do this, use TCM1000101.

If the status of the award is ‘award issued’, go to .

If the status of the award is terminated or ceased, go to .

Step 13

Check the reason for the termination.

If the claim is System Terminated because the customer has not responded to a TC603, the OMS have confirmed the composition of the family on the e-form or SED and there are no changes of circumstances

  • make a note on TC648 that a reply has been received from the OMS
  • issue TC664 to the customer to confirm

    • their current employment details
    • their current address details
    • any recent changes of circumstances
  • issue a TC603D2 if the claim covers PY and PY-1
  • issue a TC603D if the claim covers PY only
  • issue a TC603R in all cases
  • update Household Notes with the message SU04 from TCM0172080. For how to do this, use TCM1000001
  • take no further action

If it is System Terminated and the OMS have not confirmed the composition of the family on the e-form or SED, and / or there are changes of circumstances, contact your TALLO for advice on what to do.

If it is terminated for any other reason, contact your TALLO for advice on what to do.

Step 14

Using the SEES decision tree ‘B&C EEA competence for family benefits’, for how to do this, use TCM1000257 make a note of who is the competent state to pay family benefits. You must also use the details supplied by the customer on the Tax Credit claim form and any reply you have received from the OMS. For how to do this, use TCM0305100.

If the OMS confirm the family are in mixed locations and the decision tree states refer to TALLO

  • make a note of this on form TC648
  • contact your Technical Advice Line Liaison Officer (TALLO) for advice on what to do.

If the OMS confirm the family are in the UK and the decision tree states that the UK is competent to pay family benefits

  • make a note of this on form TC648
  • go to .

If the OMS confirm the details of the family are the same as those stated on the claim form and the decision tree states that the UK is competent go to .

If the OMS confirm the details of the family are the same as those stated on the claim form and there is a claim to family benefits in the OMS and the decision tree states that the OMS is competent

  • make a note of this on form TC648
  • go to .

If the OMS confirm the details of the family are not the same as those stated on the claim form and the decision tree states that the UK are competent to pay family benefits, go to .

If the OMS confirm the details of the family are not the same as those stated on the claim form and the decision tree states that the OMS are competent to pay family benefits, refer to TALLO.

If the OMS state the customer is not co-operating with their enquiries and you are unable to confirm competency, go to .

If the OMS state there is no trace of the customer or child and you are unable to confirm competency, contact your TALLO for advice on what to do.

If the OMS state that they have disallowed the claim for Family Benefit and the decision tree states that the UK is competent, follow the guidance in TCM0304500.

If the OMS state that they have disallowed the claim for Family Benefit and the decision tree states that the OMS is competent, follow the guidance in TCM0304500.

If the OMS confirm the details of the family are the same as those stated on the claim form and they confirm that have not received a claim for Family Benefit from their customer in the OMS and the decision tree states that the OMS is competent to pay family benefits, follow the guidance in TCM0304500.

Step 15

Check if the employment is based in the UK or OMS.

If the employment is based in the OMS

  • go to .

If the employment is based in the UK

  • go to .

Step 16

Check the TC648.

If there is nothing on the TC648 requesting a Class 2 employment check against the newly self employed person, go to .

If the TC648 confirms the customer is a newly self employed person and a Class 2 employment check is required

  • access NPS through your desk top
  • in ‘resource group selection’ select OK, this will take you to ‘Open Person File’ box
  • enter the customer’s NINO
  • select OK, this will take you to ‘Identify Screen’ box
  • fastpath to the ‘Financials’ folder
  • select ‘Option’ from the drop down menu and select ‘Fastpath’ to financials. This takes you to the financials screen
  • go to .

Step 17

If the status of PAID is shown. The self employed person has paid their bill in full, make a note on the manual file that the customer is paying Class 2 NI contributions

  • make a note on the manual file that the customer is liable to pay and paying Class 2 NI contributions
  • go to .

If the status of PART PAID is shown. The self employed person has paid part of their Class 2 NI contributions, however there is still an outstanding amount to pay, make a note on the manual file that the customer is paying Class 2 NI contributions

  • make a note on the manual file that the customer is liable to pay and paying Class 2 NI contributions
  • go to .

If the status of UNPAID is shown, The self employed person has been sent a bill and that bill is still outstanding, go to .

If the status of NOT APPLICABLE is shown. The self employed person’s conditions may have changed, go to .

Note: The status field will always show and entry. Bill details will only be created in the bill summary and bill details window once a bill has been produced.

Note: Where a self employed person makes part payment and outstanding payment will be requested when the next bill is issued.

Step 18

The bill status filed shows one or more bills unpaid.

  • check the ‘Latest Date Of Issue’ field.
  • make a note of the date the self employed person has to pay their bill
  • go to .

Note: Bills issued in October 2011 will require payment from the self employed person by the end of January 2012. This bill covers the period 6th April 2011 to 5th October 2011.

Note: Bills issued in April 2012 will require payment from the self employed person by the end of July 2012. This bill covers the period 5th April 2012 to the 6th October 2012.

Note: Bills issued in October 2012 will require payment from the self employed person by 31 January 2013. This bill covers the period 8 April 2012 to 6 October 2012.

Note: Bills issued in April 2013 will require payment from the self employed person by 31 July 2013. This bill covers the period 7 October 2012 to 6 April 2013.

Step 19

If the date you are working on is past the date the self employed person is expected to pay their bill

  • issue TC664 to the customer in the UK and request evidence that they have paid their outstanding Class 2 bill
  • update the Application Notes with the message II76 from TCM0160040. For how to do this use TCM1000028
  • where you may need to make enquiries to work any linked work list items, follow the appropriate guidance for any linked work list item
  • select all the linked work list items for the claim that you are working on. For how to do this, use TCM1000040
  • set an action date on the work list item for 30 days in the future. For how to do this, use TCM1000080.
  • transfer all the work list items to the appropriate BF MU. For how to do this, use TCM1000023.
  • make a note on the manual file of the action you have taken and the action date you have set
  • take no further action.

If the date you are working on is on or before the date the self employed person has to pay their bill, go to .

Step 20

The bill status filed shows a status of ‘NOT APPLICABLE’

Note: This is an indication that the conditions under which the bill was originally issued may have changed.

  • access the Liabilities Folder
  • check to see if the self employed has been granted a Small Earning Exception.

If the self employed person has been granted a Small Earnings Exception, go to .

If the Liabilities Folder does not show a Small Earning Exception

  • issue a TC664 to the self employed person and establish if they have had a change of circumstance affecting their self employment. Advise the self employed person that you are not able to consider their claim as they have not paid their Class 2 NI contributions.
  • update the Application Notes with the message II76 from TCM0160040. For how to do this use TCM1000028
  • where you may need to make enquiries to work any linked work list items, follow the appropriate guidance for any linked work list item
  • select all the linked work list items for the claim that you are working on. For how to do this, use TCM1000040
  • set an action date on the work list item for 30 days in the future. For how to do this, use TCM1000080
  • transfer all the work list items to the appropriate BF MU. For how to do this, use TCM1000023
  • make a note on the manual file of the action you have taken and the action date you have set
  • take no further action.

Step 21

If the customer has returned the TC664 and provided evidence that they have paid their Class 2 Bill

  • return any evidence to the customer
  • make a note on the manual file that customers is liable to pay and paying Class 2 NI contributions
  • go to .

If the customer has returned the TC664 requesting evidence that they have paid their Class 2 Bill but has not been able to provide evidence that they have paid their Class 2 NI contributions, go to .

If the customer has returned the TC664 provides evidence that they hold a Small Earnings Exception (SEE) which exempts them from paying Class 2 NI contributions, go to .

If the BF has expired and the customer has failed to respond to the TC664 requesting evidence that they have paid their Class 2 NI contributions, go to .

If the customer returns the TC664 and confirms a change in circumstances affecting their self employment, refer to TALLO.

Step22

  • disallow the claim to CTC
  • send form TC1116 to the customer in the UK
  • update the Household Notes with the message II74 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001.

If WTC is in payment, take no further action.

If WTC is not in payment because it has been disallowed

  • use the effective date of claim as the responsibility end date to exclude the child from the award. For how to do this, use TCM1000171

Note: Do not complete the ‘Amend Finish’ screen at this point.

  • go to .

Step 23

Check if this is the only employment on the claim

If this is not the only employment on the claim

  • go back to and repeat for each employment on the claim.

If this is the only employment on the claim

  • go to .

Step 24

Check for any change of circumstances. To do this

  • check the manual file

Note: The Change of Circumstances Team will have linked any Work Area Mailbox (WAM) referrals or physical change of circumstances to the manual file, if appropriate.

  • check Household Notes. For how to do this, use TCM1000067
  • check the ‘Unprocessed Change of Circs’ work list. For how to do this, use TCM1000208.

If there is a change of circumstances which is a change of address for the family in the OMS

  • contact the customer by telephone to ask them if the change of address has resulted in a change to the area authority or OMS we need to contact. Follow the guidance in TCM0094080
  • go to .

If there is no change of circumstances or the change of circumstances is not a change of address for the family in the OMS, go to .

Step 25

If the customer confirms the change has resulted in a change to the area authority or OMS, go back to .

If the customer confirms the change has not resulted in a change to the area authority or OMS, go to .

If you cannot contact the customer, go to .

Step 26

Check that the correct E400 forms or SEDS have been sent to the correct OMS. Follow the guidance in TCM0305100.

If the correct E400 forms or SEDS have been sent to the correct OMS

  • disallow the claim for CTC
  • send a manual form TC601 to the customer
  • update Household Notes with the message II51 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001
  • take no further action.

If the correct E400 forms or SEDS have not been sent to the correct OMS, go back to .

Step 27

To tell the customer in the UK that their partner in the OMS is not co-operating

  • complete form TC1097
  • send it to the customer in the UK
  • set a BF date of two months or if the customer is Polish of three months on the manual file.

If a reply is received by the time the BF date has expired, go back to .

If a reply is not received by the time the BF date has expired, contact your TALLO for advice on what to do.

Step 28

Compare the reply from the OMS with the original details on the claim form held in the manual file to determine what the differences are.

If the only difference between the OMS family details and those on the original claim form is there are more children, go to .

If the only difference between the OMS family details and those on the original claim form is there are fewer children

  • make a note on the form TC648 of

    • which children have been confirmed by the OMS
    • that these are the only children to be considered for CTC
  • update Household Note with the message II46 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001
  • go to .

If there are other differences between the OMS family details and those on the original claim form, contact your TALLO for advice on what to do.

Step 29

Check for any change of circumstances regarding a new child. To do this

  • check the manual file

Note: The Change of Circumstances Team will have linked any WAM referrals or physical change of circumstances to the manual file, if appropriate.

  • check Household Notes. For how to do this, use TCM1000067
  • check the ‘Unprocessed Change of Circs’ work list. For how to do this, use TCM1000208.

If we have been notified of the new child or children

  • make a note on form TC648 that the new child or children are confirmed by the OMS and should be considered for CTC
  • go to .

If we have not been notified of a new child or children

  • make a note on form TC648 that the only children to be considered for CTC are those originally on the claim form
  • update Household Notes with the message II49 from TCM0160040. For how to do this, use TCM1000001
  • go to .

Step 30

Check the E400 forms or SEDS for a date the rest of the family moved to the UK.

If the OMS has provided a date when the rest of the family moved to the UK, go to .

If the OMS has not provided a date when the rest of the family moved to the UK

  • contact the customer and ask them for the date the rest of the family moved to the UK. Follow the guidance in TCM0094080
  • make a note on form TC648 of this enquiry
  • go to .

Step 31

If you obtain the information, go to .

If you cannot obtain the information and WTC is in payment,

  • disallow the claim for CTC
  • send a manual form TC601 to the customer
  • update Household Notes with the message II51 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001.

If you cannot obtain the information and WTC is not in payment because it has been disallowed

  • use the effective date of claim as the responsibility end date to exclude the child from the award. For how to do this, use TCM1000171

Note: Do not complete the ‘Amend Finish’ screen at this point.

  • go to .

Step 32

Complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032.

Note: The child or children will not be excluded from the award until you have completed the ‘Amend Finish’ screen.

If a warning message displayed and you had to pass the case to a Level 2 User or your manager, take no further action.

If a warning message displayed and you were able to exclude the child or children from the award, take no further action.

If a warning message did not display, take no further action.

Step 33

Check the date the rest of the family moved to the UK to determine if the family was in the UK before the date the tax credits claim was received.

If the rest of the family was not in the UK at the date the claim was received

  • make a note on form TC648

    • of the date the rest of the family moved to the UK
    • that the complex case ends on that date and will change to a non-complex case from that date
  • contact your TALLO for advice on what to do.

If the rest of the family was in the UK before the date the claim was received, follow the guidance in TCM0284060.

Step 34

If the UK is competent to pay family benefits, go to .

If the OMS are competent to pay family benefits

  • follow the guidance in ‘How to calculate a supplement for EEA customers with abroad involvement’

Note: Until this guidance is published, ask your TALLO for advice on what you need to do.

  • go to .

If there is a switch in competency to pay family benefits from UK to OMS or OMS to UK, go to .

Note: A switch in competency is where the competency to pay the family benefit switches from the OMS to the UK or from the UK to the OMS. This can happen when there is a change in the customer’s circumstances.

From using the B&C EEA Competency for Family Benefits decision tree you will be able to determine whether the competency to pay family benefits has switched from OMS to UK, or UK to OMS.

Step 35

If there is a switch in competency and the UK is now competent to pay the full rate of family benefits

  • award from earliest possible date of entitlement
  • consider supplement from earliest possible date of entitlement to the end of the month following arrival
  • pay CTC in full from beginning of month following arrival

If there is a switch in competency and the OMS is now competent to pay, with the UK paying a supplement

  • consider supplement, follow the guidance in ‘How to calculate a supplement for EEA customers with abroad involvement’

Note: Until this guidance is published, ask your TALLO for advice on what you need to do.

  • pay the full rate until the end of the current month, then pay the supplement from the beginning of the month following arrival.

Step 36

Check the E400 forms or SEDS to determine if the dates they’ve confirmed match the dates the customer has claimed tax credits. For how to do this, use TCM1000264.

If it matches the period CTC is being calculated for, go to .

If it does not match the period CTC is being calculated for, go to .

Step 37

Check the manual file for the nationality of the customer.

If the customer is Polish

  • send a UKPL form or SED to the OMS. Follow the guidance in TCM0305100
  • go to .

If the customer is any other nationality

  • send an E401 form or SED to the OMS. Follow the guidance in TCM0305100
  • go to .

Step 38

Check for any further changes of circumstance. To do this

  • check the manual file

Note: The Change of Circumstances Team will have linked any WAM referrals or physical change of circumstances to the manual file, if appropriate.

  • check Household Notes. For how to do this, use TCM1000067
  • check the ‘Unprocessed Change of Circs’ work list. For how to do this, use TCM1000208
  • make a note on form TC648 of the dates and type of any change of circumstances.

If any of the following changes have been recorded

  • death of either of the customers
  • death of all the children or the only child
  • a household breakdown
  • customer 2 is now living in the UK with the children and customer 1
  • the customer has ended their UK employment or self employment or changed their job
  • for migrant workers

    • the customer is no longer living in the UK
    • the customer is now working under 30 hours weekly
    • the customer in the UK was not entitled to WTC at the start of the claim but has now contacted us to say they are now working 30 hours a week and are aged 25 years or over then
  • apply the change of circumstance. Follow the relevant Changes guidance
  • contact your TALLO for advice on what to do

Note: These types of changes may

* end the current WTC award, although there may be entitlement to WTC as a single person and the customer should make a fresh claimor
  
* there could be entitlement to a ‘closed period award’ of CTC. The TALLO will have Technical Notes to advise them of the process to follow for each change of circumstanceor
  
* entitlement to WTC may have started and will need calculating from the relevant date.

If there are no further changes of circumstances or the changes are none of the above, go to .

Step 39

Note: It is important to make sure that any system payments are not issued. So, if the original upfront WTC award was nil, do not continue at this stage unless you also have time to follow the guidance in to immediately following this step. Either pass the case to a colleague who will be able to process it or set a BF date and pick it up first thing the next working day.

In the manual file there may be a print out of children who were removed from the claim to pay WTC upfront. From the notes on the form TC648 and the information on the returned E400 forms or SEDS, check whether the OMS have confirmed that the family includes all of these children.

If the OMS has confirmed that the family includes all of these children

  • add these children to the award. For how to do this, use TCM1000231

Note: When re-including children on the award that are not resident in the UK do not add any disability dates.

Note: Do not complete the ‘Amend Finish’ screen at this point.

  • go to .

If the OMS has confirmed that the family does not include all of these children

  • check the form TC648 to determine which children should be added to the award for CTC and add them. For how to do this, use TCM1000231

Note: Do not complete the ‘Amend Finish’ screen at this point.

  • make a note on the form TC648 of any children that have been claimed for but have not been added to the award
  • go to .

If no children were removed from the claim to pay WTC up front, go to .

Step 40

Complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032

Note: The child or children will not be added to the award until you have completed the ‘Amend Finish’ screen.

If a warning message displayed and you had to pass the case to a Level 2 User or your manager, take no further action.

If a warning message displayed and you were able to add the child or children to the award, go to .

If a warning message did not display, go to .

Step 41

If the original award of WTC was nil, go to .

If the original award of WTC was not nil, go to .

Step 42

Check if a payment schedule has been set up. For how to do this, use TCM1000374.

Note: A payment schedule can take up to 48 hours after your initial action to set up. It is important to keep checking at regular intervals to determine if a payment schedule has been set up.

If a payment schedule has been set up

  • suspend the payments. For how to do this, use TCM1000232
  • transfer the ‘Suspend Payments (Payment)’ work list item to your MU. For how to do this, use TCM1000023

Note: You can only access the work list through one of the Payment Processor user roles.

  • through your MU, set an action date for 180 days on the Suspend Payments (Payment) work list. For how to do this, use TCM1000008
  • make a note on the form TC648 of the action you have taken
  • update Household Notes with the message II10 from TCM0160040. For how to do this, use TCM1000001
  • go to .

If a payment schedule has not been set up after 48 hours, contact your TALLO for advice on what to do.

Step 43

Check the payment schedule to determine if any payments have been issued. For how to do this, use TCM1000312.

If BACS payments have been issued to the customer

  • contact the Bank Liaison Team to recall the payments. For how to do this, use TCM1000134

Note: If the payments can not be recalled, make a note on the form TC648 of the amount paid.

  • go to .

If giro payments have been issued to the customer

  • make a note on form TC648 of the amount paid
  • go to .

If payments have not been issued to the customer, go to .

Step 44

Note: Adding the child or children back on the award may have caused a rule 2 verification failure. Check whether there is a rule 2 verification failure. For how to do this, use TCM1000299.

If there is a rule 2 verification failure

  • clear the verification failure. For how to do this, use TCM1000247
  • update Household Notes with the message II46 from TCM0160040. For how to do this, use TCM1000001
  • update the manual file with the action you have taken
  • go to .

If there is no rule 2 verification failure, go to .

Step 45

Note: If you already have a SEES calculation and a supplement calculation form 1D in the manual file, do not recalculate the CTC.

Note: For migrant workers, do not calculate WTC if we have already disallowed WTC for no entitlement due to the customer not being aged 25 years or over and working 30 hours or more weekly.

Decide which elements of tax credits are to be paid, then manually calculate any WTC and CTC

  • use the SEES ‘Tax Credits Entitlement Calculator’ to calculate the WTC and CTC, if applicable

Note: You will need to do separate SEES calculations for both WTC and CTC.

Note: Make sure you select the ‘Home’ tab and select ‘Clear all details’ after each calculation to make sure you do not include any CTC elements in a WTC calculation or any WTC elements in a CTC calculation.

Note: The tax credits computer will have re-calculated the effective date of claim once the children have been re-added. You must use the date of claim shown in function ‘View Application’ as the effective date of claim. For how to do this, use TCM1000218.

Note: If the period from the start of the date of claim to today’s date has passed 5 April, then you will need a separate SEES calculation for each year.

For how to do this, use TCM1000089

  • update Household Notes with the message II47 from TCM0160040. For how to do this, use TCM1000001
  • go to .

Step 46

Note: For migrant workers, do not calculate WTC if we have already disallowed WTC for no entitlement due to the customer not being aged 25 years or over and working 30 hours or more weekly.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Note: If you are calculating payments for more than one tax year, you will have to complete a ‘Manual payment calculation sheet’ for both the ended award and the current award.

  • complete section 1 with the customer’s details
  • complete section 2
  • enter the effective date of claim in the ‘Award Start date’ box
  • in the ‘Entitlement Periods’ box, enter the start date of the entitlement period in the ‘Start Date’ column
  • enter the end date of the entitlement period in the ‘End Date’ column
  • enter the amounts shown on the WTC SEES calculations in the ‘WTC’ column
  • enter either the supplement calculation amounts shown on form 1D or the CTC SEES calculation in the ‘CTC’ column
  • go to .

Step 47

Complete section 3 of the ‘Manual payment calculation sheet’

  • enter the household pay day in the ‘Household pay day’ box. For how to do this, use TCM1000288.

If you are calculating payments for an ended award, go to .

If you are calculating payments for the current award

  • enter a date two weeks from today’s date in the ‘Date of next HH pay day’ box
  • return to the SEES ‘Tax Credits Entitlement Calculator’ for WTC
  • add a change of circumstances with the date in the ‘Date of the Next HH pay day’ box as the change of circumstance
  • remove all the elements in the ‘CofC’ column underneath the date you have just entered
  • select ‘Calc’
  • print off the SEES calculation sheet
  • copy the WTC amount from the ‘Payable as within entitlement period’ row in the SEES calculation and enter it in the ‘WTC’ box in the ‘Entitlement to next HH pay day’ box in section 3 on the ‘Manual payment calculation sheet’
  • go to .

Step 48

If there is a supplement calculation form 1D in the manual file

  • from the printed SEES calculation sheet note the number of days in the entitlement period (A)
  • from the supplement calculation form 1D note the daily rate figure for the supplement amount of CTC (B)
  • multiply A by B which will equal (C)
  • enter the (C) amount in section 3 of the ‘Manual payment calculation sheet’ in the relevant ‘Entitlement to next HH pay day’ box
  • go to .

If there is not a supplement calculation form 1D in the manual file

  • enter a date two weeks from today’s date in the ‘Date of next HH pay day’ box
  • return to the SEES ‘Tax Credits Entitlement Calculator’ for CTC
  • add a change of circumstances with the date in the ‘Date of the Next HH pay day’ box as the change of circumstance
  • remove all the elements in the ‘CofC’ column underneath the date you have just entered
  • select ‘Calc’
  • print off the SEES calculation sheet
  • copy the CTC amount from the ‘Payable as (within entitlement period’ row in the SEES calculation and enter it in the ‘CTC’ box in the ‘Entitlement to next HH pay day’ box in section 3 on the ‘Manual payment calculation sheet’
  • go to .

Step 49

In section 3 of the ‘Manual payment calculation sheet’

  • enter the end date of the award period in the ‘Date of Next HH pay day’ box
  • copy the WTC amount from the ‘Payable as (within entitlement period’ row in the SEES calculation and enter it in the ‘CTC’ box in the ‘Entitlement to next HH pay day’ box
  • copy the CTC amount from the ‘Payable as (within entitlement period’ row in the SEES calculation and enter it in the ‘CTC’ box in the ‘Entitlement to next HH pay day’ box
  • go to .

Step 50

Check the account for all payments that have been posted by viewing the account. For how to do this, use TCM1000296

  • enter this figure in the ‘System Payment up to (today’s date)’ box on the ‘Manual payment calculation sheet’

Note: At this stage there should only be WTC amounts shown. If there are any direct payments of CTC shown, contact your TALLO for advice on what to do

  • go to .

Step 51

Check Household Notes, selecting the ‘Payments’ category for any manual payments which have already been made. For how to do this, use TCM1000067

Note: This will shown as ‘PC16 - Complex Case URP’

  • copy the details of all the relevant year’s payments
  • enter those details in the ‘Manual Payments issued so far’ box in section 3 of the ‘Manual payment calculation sheet’

Note: At this stage there should only be WTC amounts shown. If there are any notes of payments of CTC shown, contact your TALLO for advice on what to do.

  • go to .

Step 52

Check for any posted manual payments. For how to do this, use TCM1000289

  • check each manual payment recorded on the ‘Manual payment calculation sheet’ against those shown as posted on the tax credits computer

Note: The payment amounts will always match.

Note: The dates may not match. The matching postings will be the closest to but after the date in the Household Note ‘Event Date’ column.

Note: The entry in the ‘Tax Credit Type’ will always match (either WTC or CTC).

  • select either ‘Yes’ or ‘No’ for each payment in the ‘Posted?’ column on the ‘Manual payment calculation sheet’

Note: The ‘Manual payment calculation sheet’ will automatically calculate any manual payments that aren’t posted and enter them in the ‘Total’ box.

  • go to .

Step 53

Check that the manual payments are due on the ‘Manual payment calculation sheet’

  • check ‘Section 4 - Arrears Calculation’
  • in the ‘Rounding’ column in the ‘Balance to Pay’ row, check the ‘Total’ box

Note: If this figure is a negative amount it shows that the customer has received all their entitlement for this award period.

Note: Manual payments should be due for all these cases.

If the rounding figure is positive, go to .

If the rounding figure is negative

  • check that the manual payment calculation has been done correctly
  • if the figure is still negative, contact your TALLO for advice on what to do.

Step 54

Note: The first scheduled payment will be due 28 days after the date in the ‘Date of Next HH pay day’ box or on the award end date if this is less than 28 days after that date.

Calculate and schedule the manual payments

  • select ‘Schedule of Payments’ on the ‘Manual payment calculation sheet’
  • select ‘Weekly’ or ‘4 Weekly’ payments from the ‘Frequency’ drop down list
  • select ‘Suspended payments’ from the ‘Reason for issue’ box
  • enter the year end date or the award end date, if this is known to be earlier in the ‘Year end date’ box

Note: The ‘Award end date’ box will be automatically populated.

  • enter the date recorded in the ‘Date of Next HH pay day’ box at section 3 of the ‘Manual payment calculation sheet’ on the first row in the ‘Due Date’ column

Note: The ‘Due Date’ column will be populated with the dates that payments are due up to the end of the award period.

Note: The number of due payments will now be shown in the ‘Number of scheduled payments’ box in the second column.

Note: If the calculation is made towards the end of the tax year there may be no further payments due after the first payment.

  • make a note of the entry in the ‘Number of scheduled payments’ box
  • select ‘Calculation sheet’

Note: In the ‘Rounding table’ of section 4, the ‘Balance to Pay’ row will automatically display the total WTC and CTC balances.

Note: The balance to pay amount in the ‘Rounding table’ should be positive for both tax credits. If it is not, contact your TALLO for advice on what to do.

  • divide the amount of each tax credit in the ‘Balance to Pay’ row by the entry in the ‘Number of scheduled payments’ box
  • round the result down to the nearest penny. This will be the amount of the regular scheduled payments for each tax credit
  • select ‘Schedule of Payments’
  • enter the regular scheduled payment amounts in the ‘WTC’ and ‘CTC’ columns from the second row in the ‘Schedule of Manual payments’ box
  • make a note of the amounts in the ‘Totals’ boxes at the end of the ‘Schedule of Payments’ columns
  • select ‘Calculation sheet’
  • enter the amounts on the ‘Totals’ boxes in the ‘Scheduled Manual payments’ row of section 4
  • add the amount shown in the ‘Balance to Pay’ row to that in the ‘Rounding amount’ row for WTC
  • add the amount shown in the ‘Balance to Pay’ row to that in the ‘Rounding amount’ row for CTC
  • make a note of both amounts
  • select ‘Schedule of Payments’
  • enter the WTC amount in the first row of the ‘Due Date’ column in the ‘Schedule of Payments’ box
  • enter the CTC amount in the first row of the ‘Due Date’ column in the ‘Schedule of Payments’ box
  • print off all the pages of the ‘Manual payment calculation sheet’
  • attach them to the manual file
  • pass the manual file, case papers and the print offs to your manager for 100% checking
  • go to .

Step 55

Once the calculations have been checked

  • complete a form TC602 for the award of CTC. For how to do this, use TCM1000310

If your calculations have changed the WTC amount currently in payment, go to .

If your calculations have not changed the WTC amount currently in payment, go to .

Step 56

Complete form TC602 for the new award of WTC. For how to do this, use TCM1000311

  • go to .

Note: Where there are two customers on the tax credit claim, issue a joint award notice to both customers irrespective of where they live showing both WTC and CTC awards.

Step 57

Update Household notes with the messages II14 and II48 from TCM0160040. For how to do this, use TCM1000001

  • go to .

Step 58

If you have included all the children on the original claim form in the award for CTC

  • send copies of both forms TC602 to the customer living in the UK and the customer living in the OMS
  • retain a copy in the manual file
  • go to .

If you have not included all the children on the original claim form in the award for CTC

  • complete the SEES ‘Free Text Letter (NINO/PAYE)’ to tell the customer why you have not included all the children they have claimed for in their award of CTC
  • send a copy of the SEES letter and copies of both forms TC602 to the customer living in the UK and the customer living in the OMS
  • retain a copy of each form in the manual file
  • go to .

Step 59

Send form E001 or SED to the OMS to inform them of the family benefits being paid in the UK so that they are not also paying them. Follow the guidance in TCM0305100

  • retain a copy of the form in the manual file
  • pass the manual file and the print offs of the manual calculation sheets to the Manual Payments Team.