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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas - Persons from abroad: Persons From Abroad team - Refugee backdating

Checklist

Before you follow this guidance make sure you are in the correct MU. Use TCM0322460 for the correct MU number.

Background

Where a customer claimed asylum as a refugee and has therefore been excluded from tax credits as a person subject to immigration control but:

  • is then notified that they have been recorded as a refugee by the Home Office

and

  • they apply for tax credits within 30 days of receiving their notification of refugee status from the Home Office

then

  • they will be treated as having made a claim for tax credits for the whole of the period from the date of the original claim for asylum up to the date the actual claim for tax credits is made, including for any intervening years.

Entitlement is determined as if the person had been a refugee from the date the claim to asylum was made. This means:

  • they should be treated as a person who is not subject to immigration control from the date they claimed asylum

and, it also means

  • the rules for couples will apply from that date, so that, in practice,
    • before April 2010 neither partner would be treated as being subject to immigration control and they will be eligible to receive the 2nd adult element of WTC
    • after April 2010, where one customer has refugee status and their partner is subject to immigration control, we consider whether the second adult element is to be removed.

The amount of any tax credits due is reduced by the amount of any support already provided under Section 95 or 98 of the Immigration and Asylum Act 1999.

Note: This does not cover payments made under Section 4 of the Immigration and Asylum Act 1999 or Integration Loans made under Section 13.

Note: From 14/7/07 Integration Loans have replaced NASS payments as the main form of support for asylum seekers. Where Integration Loans are received by the customer, they are not considered in assessing tax credits entitlement. However the UKBA may still make payments under Section 95 or 98. Where such payments are made the amount of support provided is still to be deducted from any award of tax credits made to the person. Any person that claimed asylum before 14/07/07 will not be eligible for Integration Loans but should still be eligible for NASS payments.

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 the claim is pre award and you have been signposted to this guidance from TCM0290150, go to .

If the claim is post award and you are dealing with a retrospective backdating request, go to .

If you are dealing with an expired Action Date for TC1125 or TCPFA, go to .

If you are dealing with a returned TC1125 or a reply from the UKBA Evidence and Enquiry Unit, go to .

If you are dealing with a reply from the UKBA NASS North East case work team to confirm the customers NASS payments, go to .

If you are dealing with a returned TCPFA, go to .

Step 2

Check the Household Notes for any indication that backdating has already been considered.

If this is the first time you are considering backdating

  • issue TC1125
  • update the Household Notes with the message IP22 from TCM0160040. For how to do this, use TCM1000028
  • set an Action BF date for 30 days in the future
  • take no further action.

If backdating has already been considered

  • update ‘Household Notes’ with the message IP39 from TCM0160040. For how to do this use TCM1000028
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.

Step 3

If the customer provides the documentation to show their refugee status, go to .

If the customer does not have the documentation to show their refugee status,

  • email the UKBA Evidence and Enquiry Unit to confirm the customers immigration status
  • update ‘Household Notes’ with the message IP23 from TCM0160040. For how to do this, use TCM1000028
  • set an Action BF date for 30 days to await their reply
  • take no further action.

If the Home Office have provided confirmation of the customer’s refugee status, go to .

If the Home Office states that the customer does not have full refugee status

  • update ‘Household Notes’ with the message IP27 from TCM0160040. For how to do this, use TCM1000028
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.

Step 4

Where form TC1125 or TCPFA has not been returned

  • make a note on the TC648 that the customer has not responded to enquiries
  • update ‘Household Notes’ with the message IP26 from TCM0160040. For how to do this, use TCM1000028
  • take no further action.

Step 5

Use Function VIEW APPLICATION to check when the claim to tax credits was made:

  • insert NINO
  • select ’All’
  • select ‘OK’
  • select the earliest version of the claim
  • select ‘OK’. You will be taken to the ‘Application Summary’ screen
  • make a note of the effective date of the claim
  • check the information supplied by the customer about when their application for asylum was granted and they were given refugee status by the Home Office.

Note: For claims made on or after 6th April 2012 the time limit for claiming a tax credit is within 1 month and prior to 6th April 2012 within 3 months. For claims made in that time limit the claim will be treated as made on the date they first claimed asylum in the UK and on every subsequent 6 April.

If the claim for tax credit was received within the required timescales following the date the customer was notified by the Home Office of their decision to grant refugee status, go to .

If the claim for tax credits was not received within the required timescales following the date the customer was notified by the Home Office of their decision to grant refugee status

  • issue TC1157
  • update the ‘Household Notes’ with the message IP28 from TCM0160040. For how to do this, use TCM1000028
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.

Step 6

Check whether NASS payments have been made to the customer.

If a full break down of NASS payments has been provided, go to .

If only the last four weeks of NASS payments has been provided on the NASS 35

  • email the UKBA NASS North East case work team to confirm the customers NASS payments
  • update ‘Household Notes’ with the message IP25 from TCM0160040. For how to do this, use TCM1000028
  • set an Action BF date for 30 days to await their reply
  • go to .

If customer has not provided any details of NASS payments

  • email the UKBA NASS North East case work team to confirm the customers NASS payments and asylum lodge date
  • update ‘Household Notes’ with the message IP25 from TCM0160040. For how to do this, use TCM1000028
  • set an Action BF date for 30 days to await their reply
  • go to .

Step 7

If the claim is post award, go to .

If the claim is pre award

  • access the claim through ‘Worklist’
  • select ‘Summary Screen’
  • check the date refugee status was notified
  • check the child responsibility date in cases where the children arrived in the UK after the customer

Note: For a customer or customers to be treated as being responsible for a child or young person that child or young person must ‘normally live’ with the customer.

  • check the earliest effective date of claim

Note: The earliest effective date of claim is usually a maximum of one month prior to the date the claim was received for claims received after 06/04/12 and a maximum of three months prior to the date the claim was received for claims received before 06/04/12.

  • consider amending the effective date to start payment of tax credits only in cases where the date refugee status was notified or the child responsibility date is after the earliest effective date of claim

Note: Once your backdating enquiries are complete, any tax credits payable for previous years cannot be made on NTC and NTC is not amended to reflect the earlier date of claim as this is all done manually.

  • input start date at ‘Effective Date’

Note: Use the date refugee status was notified or the child responsibility start date (for example the date the child arrived in the UK to live with the customer).

  • select ’OK’
  • select ’Process’
  • access function ‘Manage Verification Failures’ for the claim you are working. 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’.

  • on the ‘Manage Verification Failures’ screen
    • select the relevant verification failure
    • select ‘Change Verification’. You will be taken to ‘Change of Status Reason’ screen
    • update the ‘Reason’ field with the appropriate message from TCM0160040 using the relevant IP note you used before
    • select ‘OK’. You’ll be taken back to the ‘Manage Verification Failures’ screen
    • select ‘OK’
  • when the message ‘This will re-submit the application for processing and saving changes made on this window. Do you want to proceed?’ displays, select ‘Yes’
  • go to .

Step 8

To establish the customer’s circumstance in each tax year:

  • send form TCPFA to the customer to confirm their circumstances from the date asylum was first lodged

Note: You must send a separate TCPFA for each tax year you are backdating for.

  • where no NASS payments have been received, ask if the customer has received any support from their Local Authority
  • update ‘Household Notes’ with the message IP22 from TCM0160040. For how to do this, use TCM1000028
  • set an Action BF date for 30 days in the future
  • take no further action.

Step 9

On return of completed TCPFA.

If there is evidence to suggest the Local Authority has been involved, contact your TALLO for advice

If there is no evidence to suggest the Local Authority has been involved

  • use the SEES ‘Tax Credits Entitlement Calculator’ to calculate WTC and or CTC for each year. For how to do this, use TCM1000089

Note: Remember not to include the 2nd adult element where appropriate. This will be shown on the TC648.

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

  • calculate NASS payments paid to customer under Section 95 or 98 of the Immigration and Asylum Act 1999

Note: Payments made under Section 4 or Integration Loans made under Section 13 are not included in the calculation.

  • deduct NASS amount paid from tax credit entitlement
  • note your findings on TC648.

If any arrears remain outstanding

  • complete arrears stencil
  • pass for quality checking
  • go to .

If no arrears remain outstanding

  • issue TC1158 to the customer outlining decision made for each year that tax credits have been awarded and finalised
  • update ‘Household Notes’ with the message IP29 from TCM0160040. For how to do this, use TCM1000028
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.

Step 10

Once the appropriate payment details forms have been passed as correct:

  • issue TC1158 to the customer outlining decision made for each year update Household Notes with a retained note IP30 from TCM0160040. For how to do this, use TCM1000001
  • pass the ‘Payment stencil’ to the Manual Payments Team
  • send any relevant correspondence to storage. For how to do this use TCM0074140
  • take no further action.