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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas: international: miscellaneous: children of tax credits customers undertaking FTNAE in EEA

Checklist

Before you follow this guidance make sure

  • you follow the guidance in TCM0138020
  • you have the correct user roles to follow this guidance. 
  • you have access to the ‘B&C EEA competence for family benefits’ SEES package Decision Tree and know how to use it
  • you have access to the International Group Database and know how to obtain and update customer information on it
  • you have access to the Child Benefit On Line (CBOL) system and know how to use it
  • you are not dealing with a Crown Servant Case paid on system as the Business As Usual process should be followed for these cases
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Required information

Before considering the claims you may need the below information. If you do not have the information contact the customer to obtain the missing information you need. Follow the guidance in TCM0094080.

  • children or young persons abroad who are leaving Full Time Non Advanced Education (FTNAE)make sure you have
    • the date the child left FTNAE
    • the date the child commenced advanced education
  • children or young persons aboard who are starting FTNAE make sure you have
    • the date the child started FTNAE
    • the amount of hours the child attends FTNAE (this must be full time which is over 12 hours per week)
  • children or young person in the UK goes into FTNAE in an EEA country make sure you have
    • the date the child left the UK
    • If the child lives abroad confirmation that the child is in FTNAE abroad
    • the number of hours attended as this must be over 12 per week
    • the name and address of the person the child or young person is living with abroad and whether this person is working or receiving benefit in the OMS
    • the UK customer is financially responsible for maintaining the child or young person abroad if the child or young person lives with a 3rd party
    • in Polish cases the PESEL and the voivodship of the UK customer and the customer the child is living with in Poland
    • the name and address of the school or college
    • confirmed if the child or young person lives at the school or college address for FTNAE purposes.

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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.

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Step 1

Check to see if the Complex Case Marker has been set. For how to do this use TCM1000024

If the case is a current complex case, go to Step 2.

If the case is not a current complex case, go to Step 16.

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Step 2

Consider the change of circumstance received.

If the children or young person abroad is leaving full time non advanced education, go to Step 3.

If the children or young person abroad is not leaving full time non advanced education, go to Step 9.

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Step 3

Consider the information held relating to the date the child left FTNAE and the date child commenced advanced education.

If all of the information is held to make a decision

  • apply the change using Establish if a change can be made guidance TCM0042280 and Backdating rules guidance TCM0022000
  • go to Step 4.

If all of the information is not held to allow you to make a decision

  • contact the customer for the information required by telephone. For how to do this, use TCM0094080
  • go to Step 6.

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Step 4

Consider the number of children on the claim.

If there is more than one child on the claim

  • consider if any of the other children or young persons live abroad
  • go to Step 5.

If there is only one child on the claim

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement up to the end of complex claim. For how to do this, use TCM1000089
  • complete the manual calculation sheets
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update Household Notes with the message NC39 from TCM0164020. For how to do this use TCM1000001
  • update Household Notes with the messages II82 from TCM0160040. For how to do this use TCM1000001
  • end complex claim and recapture a new claim on NTC
  • update Household Notes with the messages II86 from TCM0160040. For how to do this use TCM1000001
  • update the International Group Database (IGDB). For how to do this, use TCM1000408
  • take no further action.

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Step 5

Consider where the other children on the claim live.

If any of the other children or young persons live abroad

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation sheets
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update Household Notes with the message II14 from TCM0160040. For how to do this use TCM1000001
  • update Household Notes with the message NC39 from TCM0164020. For how to do this use TCM1000001
  • update the IGDB. For how to do this, use TCM1000408
  • send the case papers to storage. Follow the guidance in TCM0074140
  • take no further action

If any of the other children or young persons do not live abroad

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement up to the end of complex claim. For how to do this, use TCM1000089
  • complete the manual calculation forms
  • complete manual award notices and issue to the customer. For how to do this, use TCM1000538
  • update Household Notes with the message NC39 from TCM0164020. For how to do this use TCM1000001
  • update Household Notes with the messages II82 and II14 from TCM0160040. For how to do this use TCM1000001
  • end complex claim and recapture a new claim on NTC
  • update Household Notes with the messages II86 from TCM0160040. For how to do this use TCM1000001
  • update the IGDB. For how to do this, use TCM1000408
  • send the case papers to storage. Follow the guidance in TCM0074140
  • take no further action.

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Step 6

Consider the information obtained from the customer.

If the date the child left FTNAE and/or the date the child commenced advanced education is obtained from the telephone call to the customer, go to Step 3.

If the date the child left FTNAE and/or the date the child commenced advanced education is not obtained from the telephone call to the customer

  • issue form TC664 from SEES to the customer for the date the child left FTNAE and the date child started advanced education. For how to complete TC664, use TCM1000009
  • BF 30 days to await the customers reply
  • update Household Notes with the message II09 from TCM0160040. For how to do this use TCM1000001
  • go to Step 7.

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Step 7

If a reply to the form TC664 is received, go to Step 3.

If no reply to the form TC664 is received, go to Step 8.

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Step 8

Decide the date to apply the change.

If the customer indicates a date of when the change occurs consider the below

  • the change occurred mid month use the 15th of that month
  • the change occurred at the beginning of the month use 1st of that month
  • the change occurred at the end of the month use the last day of that month
  • the change occurred in certain month use the last day of that month
  • go to Step 3.

If the customer does not give any indication of when the date change occurred

  • use the date HMRC were notified of the change
  • go to Step 3.

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Step 9

Consider for the change of circumstances received children or young person abroad starting FTNAE.

If the children or young person abroad are starting Full time non advanced education

  • check Child Benefit On Line (CBOL) for note relating to payment for children or young person in FTNAE and that ‘EC Regs apply’
  • go to Step 10.

If the children or young person abroad are not starting Full time non advanced education, go to Step 16.

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Step 10

Consider the CBOL note relating to children or young person in FTNAE with EC Regs.

If CBOL shows child or young person in FTNAE with EC Regs

  • apply the change using Establish if a change can be made guidance TCM0042280 and Backdating rules guidance TCM0022000
  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation forms
  • complete manual award notices and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II14 from TCM0160040 For how to do this use TCM1000001
  • update Household Notes with the message NC39 from TCM0164020 For how to do this use TCM1000001
  • update the IGDB. For how to do this, use TCM1000408
  • send the case papers to storage. Follow the guidance in TCM0074140
  • take no further action.

If CBOL does not show children or young person in FTNAE with EC Regs, go to Step 11.

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Step 11

Consider all the information held to make a decision relating to the FTNAE start date and hours in FTNAE each week.

If information relating to the FTNAE start date and the hours spent in FTNAE each week is held to allow a decision to be made

  • apply the change using Establish if a change can be made guidance TCM0042280 and Backdating rules guidance TCM0022000
  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation forms
  • complete manual award notices and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II14 from TCM0160040. For how to do this use TCM1000001
  • update Household Notes with the message NC39 from TCM0164020. For how to do this use TCM1000001
  • update the IGDB. For how to do this, use TCM1000408
  • send the case papers to storage. Follow the guidance in TCM0074140
  • take no further action.

If information relating to the FTNAE start date and the hours spent in FTNAE each week is not held to allow a decision to be made

  • contact the customer for all the information needed by telephone. For how to do this, use TCM0094080
  • go to Step 12.

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Step 12

Consider the information obtained from the telephone call to the customer.

If the information relating to the FTNAE start date and the hours spent in FTNAE each week is obtained from the telephone call to the customer, go to Step 11.

If the information relating to the FTNAE start date and the hours spent in FTNAE each week is not obtained from the telephone call to the customer

  • issue form TC664 from SEES to the customer for the date the child started FTNAE and the amount of hours they attend FTNAE date. For how to complete TC664, use TCM1000009
  • BF 30 days to await the customers reply
  • update Household Notes with the message II09 from TCM0160040. For how to do this use TCM1000001
  • go to Step 13.

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Step 13

If a reply to the form TC664 is received, go to Step 14.

If no reply to the form TC664 is received No duplicate TC664 required, go to Step 14.

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Step 14

Consider the information held.

If the information is obtained from the customer to allow a decision to be made, go to Step 11.

If the information is not obtained from the customer to all a decision to be made, go to Step 15.

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Step 15

Consider how many children are on the claim.

If only one child is on the claim

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation forms
  • complete manual award notices and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the messages II14, II82 and II83 from TCM0160040. For how to do this use TCM1000001
  • end complex claim and recapture a new claim on NTC
  • update Household Notes with the message II86 from TCM0160040. For how to do this use TCM1000001
  • update the IGDB. For how to do this, use TCM1000408
  • send the case papers to storage. Follow the guidance in TCM0074140
  • take no further action.

If more than one child is on the claim, go to Step 5.

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Step 16

Consider whether children or young person in UK attends FTNAE in EEA country.

If all the information is held to make a decision, go to Step 21.

If all the information is not held to allow a decision to be made

  • contact the customer for the required information by telephone. For how to do this, use TCM0094080
  • go to Step 17.

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Step 17

Consider the information obtained from the telephone call to the customer.

If the information is obtained from the telephone call to the customer, go to Step 16.

If the information is not obtained from the telephone call to the customer

  • issue form TC664 from SEES to the customer for all the details needed. For how to complete TC664, use TCM1000009
  • BF 30 days to await the customers reply
  • update Household Notes with the message II09 from TCM0160040. For how to do this use TCM1000001
  • go to Step 18.

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Step 18

If a reply to the form TC664 is received, go to Step 16.

If no reply to the form TC664 is received, go to Step 19.

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Step 19

Consider reply.

If a reply from the customer has been received, go to Step 20.

If a reply from the customer has not been received

  • do not enter FTNAE start date
  • update Household Notes with the message II83 from TCM0160040. For how to do this use TCM1000001
  • take no further action.

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Step 20

Consider any other children living in the UK.

If any other children live in the UK, go to Step 21.

If there are no other children living in the UK, go to Step 22.

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Step 21

Consider system to allow payments.

If the case can be paid from the system

  • update the system with the change of circumstances
  • update Household Notes with the message NC39 from TCM0164020. For how to do this use TCM1000001
  • take no further action.

If the case can not be paid on the system, go to Step 22.

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Step 22

Using the SEES decision tree ‘B&C EEA competence for family benefits’ make a note of who is the competent state to pay family benefits. For how to do this, use TCM1000257.

If the UK are competent

  • set the manual suspension payment for all customers. For how to do this, use TCM1000232
  • set the Complex Case marker. For how to do this use, TCM1000136
    Note: The ‘Complex Case’ and ‘Manual Correspondence’ markers won’t be set until you complete the ‘Amend Finish’ screen.
     

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

If cross award recovery was underway before the claim became complex, go to Step 23.

If cross award recovery was not underway before the claim became complex

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation form
  • complete the manual award notice and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II10, II14, II35 and II47 from TCM0160040. For how to do this use TCM1000001
  • update the IGBD. For how to do this, use TCM1000408
  • apply the change following TCM0042280 and TCM0022000
  • take no further action.

If the OMS are competent

  • issue a TC697
  • update Household Notes with the message II03 from TCM0160040. For how to do this use TCM1000001
  • BF 30 days to await the customers reply
  • go to Step 24.

If there has been a switch in competency from UK to OMS or OMS to UK, go to Step 29

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.

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Step 23

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 use TCM1000001
  • BF the claim for 1 day to allow the overpayment to be sent back overnight

On expiry of this BF period

  • remove any Appeals marker you have set. For how to do this use TCM1000453
  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation form
  • complete the manual award notice and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II10, II14, II35 and II47 from TCM0160040. For how to do this use TCM1000001
  • update the IGBD. For how to do this, use TCM1000408
  • apply the change following TCM0042280 and TCM0022000
  • take no further action.

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Step 24

On BF expiry date issue the relevant E400 series/SED to the other member state (OMS). For how to do this, use TCM0305100

  • BF for 4 1/2 months for Polish and Northern Ireland (NI) enquiries. For how to do this, use TCM1000008
  • BF for 2 months for all other countries enquiries. For how to do this, use TCM1000008
  • update the IGBD. For how to do this, use TCM1000408
  • update Household Notes with the message II84 from TCM0160040. For how to do this, use TCM1000001
  • go to Step 25.

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Step 25

Consider reply to the E-form/SED. For how to do this, use TCM0305100.

If a reply has been received

  • set the manual suspension payment for all customers. For how to do this, use TCM1000232
  • set the complex marker. For how to do this, use TCM1000136
    Note: The ‘Complex Case’ and ‘Manual Correspondence’ markers won’t be set until you complete the ‘Amend Finish’ screen.
     

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

If cross award recovery was underway before the claim became complex, go to Step 26.

If cross award recovery was not underway before the claim became complex

  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation form
  • complete the manual award notice and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II10, II14, II35 and II47 from TCM0160040. For how to do this, use TCM1000001
  • update the IGBD. For how to do this, use TCM1000408
  • apply the change following TCM0042280 and TCM0022000
  • go to Step 28.

If a reply has not been received

  • send an email to the relevant Local Authority for Polish and NI enquiries and BF for 1 month. For how to do this, use TCM1000008
  • issue a duplicate E-form/SED for all other countries enquiries.  For how to do this, use TCM0305100. BF for 2 months. For how to do this, use TCM1000008.
  • update Household Notes with the message II85 from TCM0160040. For how to do this, use TCM1000001
  • go to Step 27.

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Step 26

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 use TCM1000001
  • BF the claim for 1 day to allow the overpayment to be sent back overnight

On expiry of this BF period

  • remove any Appeals marker you have set. For how to do this use TCM1000453
  • using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation form
  • complete the manual award notice and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II10, II14, II35 and II47 from TCM0160040. For how to do this use TCM1000001
  • update the IGBD. For how to do this, use TCM1000408
  • apply the change following TCM0042280 and TCM0022000
  • go to Step 28.

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Step 27

If a reply has been received

  • set the manual suspension payment for all customers. For how to do this, use TCM1000232
  • set the complex marker. For how to do this use, TCM1000136
    Note: The ‘Complex Case’ and ‘Manual Correspondence’ markers won’t be set until you complete the ‘Amend Finish’ screen.
     

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

If cross award recovery was underway before the claim became complex, go to Step 26.

If cross award recovery was not underway before the claim became complex

  • Using the SEES ‘Tax Credits Entitlement Calculator’ calculate the customer’s entitlement to take into account the change of circumstances. For how to do this, use TCM1000089
  • complete the manual calculation form
    • complete the manual award notice and issue to the customer. For how to do this use TCM1000538
  • update Household Notes with the message II10, II14, II35 and II47 from TCM0160040. For how to do this use TCM1000001
  • this use TCM1000001
  • update the IGBD. For how to do this, use TCM1000408
  • apply the change following Establish if a change can be made guidance TCM0042280and Backdating rules guidance TCM0022000
  • go to Step 28

If a reply has not been received to the duplicate enquiry

  • do not enter FTNAE start date
  • issue TC1096 or TC1097 from SEES as appropriate
  • update Household Notes with the messages II85 from TCM0160040. For how to do this use TCM1000001
  • take no further action.

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Step 28

Check whether the make up of the family has been confirmed.

If the make up of the family has been confirmed, go to Step 29

If the make up of the family has not been confirmed, follow the guidance at Step 13 in TCM0288540

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Step 29

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

  • award from the earliest possible date of entitlement
  • consider supplement from the 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