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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist Areas - Persons from abroad - Pre award claims - Joint claim - One customer is subject to immigration control - No child responsibility

Checklist

Before you follow this guidance make sure

  • you have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • you are in the correct MU. Follow the guidance in TCM0322460 
  • you have access to the tax credit computer system (NTC)
  • you have access to NIRS.

Background

Claim forms are passed to PFA for manual capture in a two-customer family, where one has ticked they are subject to immigration control and there is no child responsibility. In these cases, you will need to restrict the 2nd adult element of WTC.

Note: In this guidance countries other than those in the UK, the EEA, A2 and Switzerland, are referred to as Rest of the World.

Reasons not to follow this guidance

Where any customer

  • is a national of Switzerland or EEA Member State including A2 nationals
  • is a national of Croatia and their claim has been made on or after 1 July 2013
  • is a Crown Servant or Posted Worker or Ghurkha
  • lives outside the UK
  • works outside the UK
  • is subject to immigration control and their partner is not, and there is child responsibility.

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 / Data Security Team for advice.

Step 1

If you are dealing with a claim for the first time, go to .

If you are dealing with information returned from the United Kingdom Border Agency (UKBA), go to .

If you are dealing with an expired BF date, go to .

Step 2

On receipt of the TC600

  • manually capture the claim. Follow step 1 of the guidance in TCM0062140 then return to this guidance

Note: Where both customers have a NINO or NONO you need to select ‘Store’ when you access the ‘Summary Screen’.

Note: Where one or both customers do not have a NINO or NONO you can select ‘Process’ as this will create a verification failure.

  • set up a manual file and record on form TC648
  • check the claim to see if the customer is present and ordinarily resident in the UK. Follow the guidance in TCM0128120.

If the customer is present and ordinarily resident in the UK, go to .

If the customer is not present and ordinarily resident in the UK

  • note the TC648
  • go to .

Step 3

Access NIRS to check the nationalities of the customers.

If either customer is a national of Turkey, Croatia or Former Yugoslav Republic of Macedonia

  • note the TC648 with the customers’ nationalities

Note: You will not need to restrict the 2nd adult element. This will be system paid.

  • go to .

If neither customer is a national of Turkey, Croatia or Former Yugoslav Republic of Macedonia

  • note the TC648 with the customers’ nationalities
  • go to .

If you are unable to trace both customers’ nationalities

  • email the UKBA Evidence and Enquiry unit. For how to do this, contact your TALLO
  • update the ‘Application Notes’ with IP32 from TCM0160040. For how to do this, use TCM1000028 
  • access the work list. For how to do this, use TCM1000004 
  • set an Action BF date for 15 days in the future. For how to do this, use TCM1000008 
  • you must select the Retained checkbox on the Worklist Entry Details screen after entering an Action Date
  • take no further action.

Step 4

Process the claim to status ‘Award Issued’

  • check for verification failures. For how to do this, use TCM1000107 
  • update the TC648
  • update the Summary Notes with the message IP12 from TCM0160040 
  • send any relevant correspondence to storage. Follow the guidance in TCM0074140 

Note: You must access function ‘Manage Verification Failures’ from the Verification Failures work list and not directly from the ‘Function Menu’.

  • take no further action.

Step 5

Check the basic conditions of entitlement are satisfied. Follow the guidance in TCM0114120.

For example where we are considering paying WTC the customer meets the WTC requirements.

If the basic conditions are satisfied

  • update the free format screen and Summary Notes with the note ‘Complex case, manual payments being made, do not apply any changes’. For how to do this, use TCM1000036 
  • go back into the claim through Application / Capture Current to the summary screen and select ‘ok’, then select ‘process’ to move the claim to ‘Awaiting Award’
  • go to .

If the basic conditions are not satisfied and both customers have a NINO

  • note the TC648
  • go to .

If the basic conditions are not satisfied and either one or both customers do not have a NINO, go to  

Step 6

If both customers have a NINO, go to .

If one or both customers do not have a NINO  

  • trace and match the customer / customers. For how to do this, use TCM1000404 

Note: Any possible match should be consistent with the rules for defining an acceptable match. Follow the guidance in TCM0322010.

  • go to .

Step 7

Check ‘Application Notes’ for a NINO or NONO. For how to do this, use TCM1000021.

If Specialist Trace Unit (STU) have supplied a NINO or NONO

  • apply the NINO or NONO

    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • trace and match the customer / customers. For how to do this, use TCM1000404 
  • go to .

If STU have not supplied a NINO or NONO, contact your Front Line Manager (FLM) for advice.

Step 8

If you are able to trace and match the customers, go to .

If you are not able to trace and match the customer / customers 

  • refer details of the verification failure to the STU

Note: If the basic conditions of entitlement have not been met STU will have no need to return the case as no further action is required. Update ‘Application Notes’ with message IP34 from TCM0160040. For how to do this, use TCM1000028.

  • update ‘Application Notes’ with the message IP35 from TCM0160040. For how to do this, use TCM1000028 
  • set an action date on each linked work list item for seven working days in the future. For how to do this, use TCM1000008 

Note: Only set an action date if an action date has not already been set whilst following this guidance.

  • update the TC648 with the action you have taken

Note: Include on the TC648 the date you have set for STU to complete their action.

  • return the file to the manual BF run
  • take no further action.

Step 9

Before you manually calculate the award

  • check the TC648 and free format for any changes of circumstance. For how to do this, use TCM1000337
  • determine which main elements of tax credits is payable

Note: The 50+ element will be withdrawn on 6 April 2012. Award notices issued from 11 October 2011 will show a revised award for 2011-2012 but will not explain that the 50+ element will stop in April 2012.

  • calculate the effective date of claim
  • use the SEES ‘Tax Credits Entitlement Calculator’ to calculate WTC, for how to do this, use TCM1000089 

Note: The effective date of claim of your calculation will be the date the claim was received.

Note: Where the period from the date the claim was received to today’s date has passed 5 April, you will need a separate entitlement calculation for both the previous year (PY) and current year (CY).

  • print off a copy of the SEES calculation to keep with the TC648
  • go to .

Step 10

You must complete Steps 10 and 11 in their entirety at the same time to avoid any system generated payments and forms being issued to the customer.

Access function ‘Manage Verification Failures’ for the claim you are working, you must access function ‘Manage Verification Failures’ from the ‘Verification Failures’ work list and not directly from the ‘Function Menu’. For how to do this, use TCM1000004 and TCM1000107.

  • manually verify verification failures
  • process the claim to status ‘Award Issued’

Note: You must access ‘Amend Application Corrections’.

  • update the manual file with the action you have taken
  • check the status of the claim is now ‘Award Issued’. For how to do this, use TCM1000118.

Note: The tax credits computer can take up to 48 hours for the status of the claim to change to ‘Award Issued’. During this time, you must check regularly if the claim status has changed.

If the status of the claim is ‘Award Issued’, go to .

If the status of the claim is ‘Awaiting Award’, contact your TALLO for advice.

Note: Allow 48 hours for the status of the claim to change to ‘Award Issued’ before referring to your TALLO.

Step 11

Claim is ‘Award Issued’

  • set the ‘Complex Case’ and ‘Manual Correspondence’ markers. For how to do this, use TCM1000136 
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032 

Note: The ‘Complex Case’ and ‘Manual Correspondence’ markers will not be set until you complete the ‘Amend Finish’ screen.

  • select the case you are working from the ‘Unprocessed Changes of Circs’ work list with ‘COC’ in the ‘Change Details’ column. For how to do this, use TCM1000208 
  • apply the ‘Free Format’. For how to do this, use TCM1000233 

Note: Do not apply the Free Format note where there is a reported change of circumstances that is also on the Free Format note or another ‘Unprocessed Changes of Circs’ work list item with a reason other than ‘COC’. Contact your TALLO for advice.

Note: You may need to repeat this action as there may be more than one ‘Free Format’ which has generated an ‘Unprocessed Changes of Circs’ work list item with the reason ‘COC’.

Note: When you have applied the ‘Free Format’, you will be taken back to the ‘Maintain Worklist’ screen. Check if the ‘Unprocessed Changes of Circs’ work list item with ‘COC’ in the ‘Change Details’ column has been deleted. For how to do this, use TCM1000208.

If the ‘Unprocessed Changes of Circs’ work list item with ‘COC’ in the ‘Change Details’ column has been deleted, go to .

If the ‘Unprocessed Changes of Circs’ work list item with ‘COC’ in the ‘Change Details’ column has not been deleted

  • delete the ‘Unprocessed Changes of Circs’ work list item with ‘COC’ in the ‘Change Details’ column. For how to do this, use TCM1000160 
  • go to .

Step 12

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 payment. 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 
  • note the 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.

Step 13

Check if any payments have been made to the customer. For how to do this, use TCM1000312.

If payment has not been made to the customer, go to .

If giro payments have been made to the customer  

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

If BACS payments have been made to the customer  

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

Step 14

If the BACS payments can be recalled, go to .

If the BACS payments can not be recalled 

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

Step 15

Complete the ‘Manual Calculation Sheets’ using the information from the TC648. For how to do this, contact your FLM.

Note: If the customer has already received payment for the award period, make sure the yearly award is adjusted by the amount of payments already issued.

  • complete a TC602 manual award notice for the WTC award. For how to do this, use TCM1000275 

Note: You will need to complete a ‘Manual Calculation Sheet’ for each tax year you have calculated WTC entitlement for.

  • complete SEES letter 1099

Note: Where the period from the start date of the claim to today’s date has passed 5 April, you will need to issue a TC602 manual award notice for each tax year.

  • pass to FLM for Quality checking
  • go to .

Step 16

On return of the papers from the FLM

  • issue TC602 manual award notice to the customer
  • update Household Notes with the message II14 from TCM0160040 

    • select the ‘Retained’ checkbox. For how to do this, use TCM1000001 
  • pass the ‘Payment Stencil’ and ‘Manual Calculation Sheets’ to the Manual Payments Team
  • pass the TC648 to the Renewals Team
  • send any relevant correspondence to storage. Follow the guidance in TCM0074140 
  • take no further action.

Step 17

To disallow the claim

  • check the TC648 for the reason for rejection
  • update the ‘Application Notes’ with the message IP33 from TCM0160040. For how to do this, use TCM1000028 
  • Process the claim to status ‘Award Issued’
  • check for verification failures. For how to do this, use TCM1000004 and TCM1000107 

Note: You must access function ‘Manage Verification Failures’ from the Verification Failures work list and not directly from the ‘Function Menu’.

  • transfer the verification failure to the appropriate MU. For how to do this, use TCM1000023and TCM1000304 

Note: You must access function ‘Manage Verification Failures’ from the Verification Failures work list and not directly from the ‘Function Menu’.

  • send any relevant correspondence to storage. Follow the guidance in TCM0074140 
  • take no further action.