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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas: international: miscellaneous: derived rights

Checklist

Before you follow this guidance make sure

  • you are in the correct MU. Use TCM0322460 for the correct MU number
  • 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. 

Background

An EEA national living in the Other Member State (OMS) can claim a derived right to child tax credits (CTC), provided that they are the natural or legal person maintaining a child of another EEA national who is

  • subject to the legislation of the United Kingdom (UK)
  • is entitled to, but does not claim, CTC
  • the main source of financial support for the child in question.

Note:The EEA national subject to UK legislation does not need to live in the UK they may be a cross border worker.

Note:For the purpose of CTC guidance only, the EEA national subject to UK legislation will be known as ‘the person entitled to claim’.

Note: From 6 April 2014 there has been a change to Full time non advanced education (FTNAE) where an end date of 31/08/CY will be applied on NTC. This change applies to 18 and 19 year olds. The customer will have to inform us each year whether the qualifying young person is continuing in FTNAE. Where the customer does not inform Tax Credits, the CTC will end. This must be considered in all manual calculations.

Note: Where a qualifying young person currently in FTNAE has an end date of either 31/08/CY or 31/08/CY+1 applied on NTC and is reaching the age of 20, the system will only pay Child Tax Credit up to the day prior to their 20th birthday.

Note: The 50+ element will be withdrawn on 6 April 2012.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.

The OMS will contact Child Benefit Processing using an E form to let us know about a person living in the OMS who may have entitlement to UK family benefits under derived right. On receipt of the E form, Child Benefit Processing will issue a Child Benefit (ChB) / tax credit claim pack and SEES CH15 Derived Right to decide on entitlement to ChB and CTC.

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

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

Step 1

If you are dealing with a new work item, go to .

If you are dealing with a returned Employment Check enquiry or on expiry of BF for an Employment Check enquiry, go to .

If you are dealing with expired BF because contributions based Job Seekers Allowance has been in payment for six months go to .

If you are dealing with returned E400 series forms or SEDs by the OMS or the expiry of BF for these E Forms, go to .

If you have received a NINO / NONO from STU or the BF has expired on your request, go to .

Step 2

On receipt of a claim to CTC

  • link with manual file which holds a copy of SEES CH15 Derived Right
  • check for any change of circumstances. To do this

    • check the manual file for any WAM referrals, physical change of circumstances or a copy of the ‘Free Format’ screen
  • check the Unprocessed Change of Circs work list. For how to do this, use TCM1000208.

If there is a Verification Failures - Rule 5 - Child in current NTC award (pre-award)

  • there is no entitlement to CTC under Derived Rights.
  • to disallow go to .

If there are any other change of circumstances, contact your TALLO for advice on what to do next.

If there are not any change of circumstances, go to .

Step 3

Check CH15 Derived Right for the name of the person entitled to claim.

Note: The person entitled to claim is the person subject to UK legislation who is purportedly entitled to CTC but who has not claimed.

  • trace the NINO of the person entitled to claim on ADD. For how to do this follow the ADD guidance.

If the NINO of the person entitled to claim has been traced go to .

If the NINO of the person entitled to claim has not been traced.

  • the claim to CTC can not be considered because we do not have enough information to trace the person entitled to claim.
  • to reject the claim go to .

Step 4

Check CH15 Derived Right to determine if the OMS customer and the person entitled to claim are separated by distance only.

If they are separated by distance only

Note: A joint claim to CTC claim should be made by the person entitled to claim.

  • entitlement to CTC can not be considered under Derived Rights
  • update the IGDB. For how to do this, use TCM1000408 
  • inform OMS using E001 or SED. For how to do this use TCM0305100 
  • contact your TALLO for advice on what to do next.

If they are permanently separated go to .

Step 5

Check the information provided on the CH15 Derived Right to determine if the child / children living in the OMS is / are dependent on the person entitled to claim.

For instance where the customer in the OMS has said they only receive financial support from the person entitled to claim, does the person entitled to claim contribute more than half, in terms of money or help, to support the needs of the dependant child.

Note: For CTC purposes only - In order for the child / children to be considered mainly dependent and as such a ‘member of the family’, the EEA national who is purportedly entitled to claim UK family benefit does not have to be the only source of financial support - but he must be the main source of financial support.

If the child is receiving financial support in addition to the support from the OMS customer and the person entitled to claim (for instance the partner of the OMS customer or a third party is also contributing to the maintenance of the child),contact your TALLO for advice on what to do next.

If the child / children is / are dependent on the person entitled to claim go to .

If the child / children is / are not dependent on the person entitled to claim

  • there is no entitlement to CTC under Derived Rights
  • to disallow go to .

If there is any doubt that child / children is / are dependent on the person entitled to claim contact your TALLO for advice on what to do next.

Step 6

Access the IGDB to check if CBO have issued E Forms / SEDs.

Note: Where CBO have issuedE Forms / SEDs they must have confirmed that the conditions under derived rights are satisfied.

If CBO have issued E Forms / SEDs go to .

If CBO have not issued E Forms / SEDs go to .

Step 7

Check the CH15 Derived Right to determine if the person entitled to claim is employed / self-employed or receiving a Qualifying Benefit, then check PAYE, NPS, ADD, NTC and TBS systems to confirm information provided.

Note: For the purposes of Derived Rights the person entitled to claim must be receiving a qualifying benefit that is supported by European Union (EU) regulations. These are:

* Contributions based Job Seekers Allowance
* Incapacity Benefit
* State Pension, Widow’s Benefit / Bereavement Benefit
* Industrial Injuries Disablement Benefit
* Main Phase Contribution-based Employment and Support Allowance
* Severe Disablement Allowance
  • make a note of the date employment / self employment started or the date the Qualifying Benefit was awarded on a form TC648 as you will need this information later.

If the person entitled to claim is employed go to .

If the person entitled to claim is not employed go to .

Step 8

The person employed in the UK must be liable to pay, and paying, UK Class 1 national insurance contributions (NICs) that are due.

  • access National Insurance and PAYE Service (NPS) to check if it shows the person entitled to claim is paying Class 1 National Insurance Contributions (NICs). To do this insert the NINO of the person entitled to claim, where it refers to the customer.

If payment of Class 1 NICs is verified

  • accept the person entitled to claim is fully affiliated to the UK NICs scheme
  • go to .

If payment of Class 1 NICs is not verified go to .

Step 9

Check if CBO have contacted the employer to confirm payment of class 1 NICS.

contact CBO to check if they have carried out an employment check. For how to do this, use TCM0304150.

If CBO have completed the employment check and the employment conditions are satisfied 

  • accept the employment conditions are satisfied for CTC
  • go to .

If CBO have completed the employment check and the employment conditions are not satisfied 

  • the person entitled to claim does not satisfy the conditions under EU regulations as an employed person
  • to check if any other conditions are satisfiedgo to .

If an employment check has not been completed by CBO

  • contact your TALLO for advice on what to do next

Note: TALLO may need to contact LAAT to agree process for contacting the ‘Person entitled to claim’ to complete employment check

  • carry out any enquiries instructed by TALLO to enable the employment check to be carried out, then
  • go to .

Step 10

Enquiry for Employment Check returned or BF expired.

Note: Where payment of Class 1 NICs is verified but payments are not consistent this maybe due to varying hours of work. The amount and type of NICs the customer pays depends on what they earn. For information on the rates of NICs payable, visit .

If payment of Class 1 NICs is verified 

  • note the TC648 of the date the conditions are satisfied under EU regulations as an employed person
  • update the IGDB. For how to do this, use TCM1000408 
  • go to .

If the enquiry is returned and payment of Class 1 NICs is not being paid because the person entitled to claim is not earning enough

  • do not accept that the person entitled to claim is liable and paying Class 1 NICs and therefore does not satisfy the conditions under EU legislation as an employed person
  • update the IGDB. For how to do this, use TCM1000408 
  • to check if any other conditions are satisfied go to .

If the enquiry confirms the person entitled to claim is not working  

  • do not accept that the person entitled to claim is liable and paying Class 1 NICs and therefore does not satisfy the conditions under EU legislation as an employed person
  • to check if any other conditions are satisfied go to .

If enquiry is not returned or returned RLS

  • the claim to CTC can not be considered because we do not have enough information to decide on the claim
  • to reject the claim go to .

Step 11

Check whether the person entitled to claim is an A2 national.

If the person entitled to claim is an A2 national go to .

If the person entitled to claim is not an A2 national go to .

Step 12

Use WAS to check if the person entitled to claim is working legally.

If the person entitled to claim is working legally go to .

If the person entitled to claim is not working legally contact your TALLO for advice on what to do next.

Step 13

If the person entitled to claim is self employed go to .

If the person entitled to claim is not self employed go to .

Step 14

The person self employed in the UK must be compulsory insured in the UK, by this we mean liable to and paying UK Class 2 national insurance contributions (NICs).

Note: All Class 2 NICs due to be paid within the bill period, must have been paid.

  • check the date they became self employed in the UK
  • check if NPS shows details about the person entitled to claim
  • note the TC648 of the date the conditions are satisfied under EU regulations as a self employed person.

If details are held about the person entitled to claim go to .

If details are not held about the person entitled to claim

  • contact TALLO and ask them to establish if the person entitled to claim has

    • registered as self employed
    • been issued a Class 2 NICs bill and if so whether the bill has been paid or is due to be paid
    • paid their Class 2 NICs, that are due to be paid, within the given period
  • go to .

Step 15

Check the liability summary screen within the ‘Contributions’ held in the ‘Financials Folder Window’ on NPS or check the information provided by TALLO.

If Class 2 liability is shown go to .

If NPS or TALLO do not hold details about the person entitled to claim and the self employment started less than three months ago contact TALLO for advice.

If NPS or TALLO do not hold details about the person entitled to claim and the self employment started more than three months ago

  • do not accept that the person entitled to claim is liable and paying Class 2 NICs and therefore does not satisfy the conditions under EU legislation as a self employed person
  • to check if any other conditions are satisfied go to .

If payment of Class 2 NICs is not being made because a lower earnings certificate has been issued 

  • do not accept that the person entitled to claim is liable and paying Class 2 NICs and therefore does not satisfy the conditions under EU legislation as a self employed person
  • to check if any other conditions are satisfied go to .

Step 16

Check the ‘Bill Status’ field within the ‘Bills Summary’ page held in the ‘Financials Folder Window’ on NPS or check the information provided by TALLO.

Note:The status field will always show an entry. Bill details will only be created in the ‘Bills Summary’ and ‘Bill Details Window’ once a bill has been produced.

  • note the TC648 of the date the conditions are satisfied under EU regulations as a self employed person.

Note:A self employed person who is insured in the UK has liability for Class 2 in each week of their self employment and has up to three months to register with HMRC. After registration, they might not have to pay for six months, when they do so, they may then pay in arrears. The contribution account might not be updated immediately by NIC&EO.

If the status is displayed as ’PAID’ or ’PART PAID’

  • accept the person entitled to claim is liable and paying Class 2 NICs
  • go to .

Note: Where part payment is shown, any outstanding payments will usually be requested when the next bill is issued.

If the status is displayed as ‘UNPAID’ for a current bill 

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

If the status is displayed as ‘UNPAID’ for two or more bills

  • do not accept that the person entitled to claim is liable / paying Class 2 NICS and therefore does not satisfy the conditions under EU legislation as a self employed person
  • to check if any other conditions are satisfied go to .

If the status is displayed as ‘NOT APPLICABLE’, contact TALLO for advice.

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

Step 17

Example 1

Bills issued in October 2011 will require payment from the migrant worker by 31 January 2012. This bill covers the period 6 April 2011 to 5 October 2011.

Example 2

Bills issued in April 2012 will require payment from the migrant worker by the 31 July 2012. This bill covers the period 5 April 2012 to the 6 October 2012.

If the date you are working on is past the due date for payment of the class 2 bill

  • do not accept that the person entitled to claim is liable and paying Class 2 NICs and therefore does not satisfy the conditions under EU legislation as a self employed person
  • to check if any other conditions are satisfied go to .

If the date you are working on is on or before the due date for payments of the class 2 bill

  • accept the person entitled to claim is liable and paying Class 2 NICs from the date self employment started
  • go to .

Step 18

If the person entitled to claim is receiving a Qualifying Benefit (listed at ), go to .

If the person entitled to claim is not receiving a Qualifying Benefit

  • there is no entitlement to CTC under Derived Rights
  • go to .

Step 19

Note: The make up of the family needs to be verified by the OMS for all the children and young persons on the tax credits claim who live in the EEA but outside the UK this may already be shown on the original E Form. The rates of any Social Security Benefits paid by the OMS will need to be confirmed on E411.

  • check TC648 and the IGDB to determine if CBO have issued the appropriate E400 series forms or SEDs, for how to do this, use TCM1000408 and TCM1000334 and update TC648 of

    • when the E400 forms or SEDs where 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
    • the BF date Child Benefit Office (CBO) have set for the return of the E400 series forms or SEDs.

If you already have on file all the information required from the OMS, go to .

If the E400 series forms or SEDs have been issued by CBO, go to .

If the E400 series forms or SEDs have already been issued by TCO, go to .

If the E400 series forms or SEDs have not been issued by CBO or TCO 

  • send the appropriate E400 series forms or SEDs to the OMS where the children and young persons live. Follow the guidance in TCM0305100. For how to do this, use TCM1000334 
  • update the IGDB with details of the E400 series forms or SEDs you will issued to the OMS. For how to do this, use TCM1000408 
  • set a BF date on the manual file and an action date on each linked work list item for

    • Polish OMS - three months
    • any other OMS - two months. For how to do this, use TCM1000008 
  • update ‘Application Notes’ with the message II62 from TCM0160040. For how to do this, use TCM1000028 
  • update the manual file with the action you will taken.

Step 20

Where CBO have issued the E Forms or SEDs, check for any change of circumstances. To do this

  • check the manual file for any WAM referrals, physical change of circumstances or a copy of the ‘Free Format’ screen

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

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

If there are any change or circumstances contact your TALLO for advice on what to do next.

If the E400 series forms or SEDs have been returned by the OMS, go to .

If a reply has not been received and three months have not elapsed since the E400 series forms or SEDs were sent

  • set a BF date of two weeks from BF date shown on IGDB for return of forms
  • return the file to the manual BF run.

Note: Resolve any queries with the information shown on the IGDB by contacting CBO and asking for an update. Follow the guidance in TCM0304150.

If a reply has not been received and three months have elapsed since the E400 series forms or SEDs were sent

  • there is no entitlement to CTC under Derived Rights
  • go to .

Step 21

Where TCO have issued the E Forms or SEDscheck for any change of circumstances. To do this

  • check the manual file for any WAM referrals, physical change of circumstances or a copy of the ‘Free Format’ screen.

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

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

If there are any change or circumstances contact your TALLO for advice on what to do next.

If the E400 series forms or SEDs have been returned by the OMS, go to .

If duplicate E400 forms or SEDs have not been issued

  • 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. For how to do this, use TCM1000408 
  • update the manual file to show that duplicate E400 forms or SEDs have been issued
  • set a BF date of

    • three months when dealing with the Polish authorities
    • two months when dealing with any other authority
  • return the file to the manual BF run.

If duplicate E400 forms or SEDs have been sent and three months have elapsed 

  • there is no entitlement to CTC under Derived Rights
  • go to .

Step 22

Consider the information you have received from the OMS. Follow the guidance in TCM0305100.

If the OMS confirm the details of the family are the same as those stated on the tax credit claim form and CH15 Derived Right

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

If the OMS do not confirm the details of the family are the same as those stated on the tax credit claim form and CH 15 Derived Right, contact your TALLO for advice on what to do next.

Step 23

Check the manual file to determine if you will made a note that the customer has reported a change of circumstances also check if there are any linked work list items for this claim. For how to do this, use TCM1000142.

Note: This change of circumstances could have been reported by a work list entry, a ‘Work Area Mailbox’ (WAM) referral or a change the customer has reported in writing. If the customer has reported a change of circumstances or there are linked work list items contact your TALLO for advice on what to do.

If the customer has not reported a change of circumstances or there are no linked work list items, go to .

Step 24

Check the manual file to determine if we know if the OMS customer and, where appropriate any partner they have living with them in the OMS, has a NINO or NONO.

If we know the OMS customer, and where appropriate their partner, has a NINO or NONO, go to .

If we do not know whether the OMS customer, and where appropriate their partner, has a NINO or NONO, go to .

Step 25

Trace and match the OMS customer and, where appropriate any partner they have living with them in the OMS. For how to do this, use TCM1000404.

Note: Any possible match should be consistent with the rules for defining an acceptable match, refer to TCM0322010.

If you are able to trace and match the OMS customer and, where appropriate any partner they have living with them in the OMS, go to .

If you are not able to trace and match the OMS customer and, where appropriate any partner they have living with them in the OMS

  • complete form (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  requesting a NONO. For how to do this, use TCM1000261 

Note:To request a NONO for a partner living with the OMS customer, complete a separate CA8288.

Note: You must enter ‘International Case, NONO required’ in the ‘Further Information’ box.

  • email the CA8288 to your line manager for them to complete the ‘Supervisor’ checkbox

(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)

  • update Application Notes with the message II63 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 manual file with the action you will taken including the action date you have set for the STU action to be completed
  • return the file to the manual BF run.

Step 26

When the action date has expired.

Note: If you will set an action date twice (a total of 14 days) and STU still have not allocated a NONO, contact your TALLO for advice.

If STU has provided a NONO, go to .

If STU has not yet replied, contact your line manager for advice.

Step 27

If entitlement under derived right is based on the person entitled to claim being in receipt of Contribution Based Job Seekers Allowance go to .

If entitlement under derived right is based on any other condition go to .

Step 28

Check TC648 for the date contributions based Job Seekers Allowance was awarded.

Note:Contributions based Job Seekers Allowance is payable for six months then the claimant goes on to income based Job Seekers Allowance, unless they become employed / self employed.

If six months have passed since the award date of contributions based Job Seekers Allowance

  • there is entitlement for the six month period contributions based Job Seekers Allowance is in payment
  • access PAYE, NPS, ADD, and TBS to check if the person entitled to claim can satisfy the conditions after contributions based Job Seekers Allowance ends because of employment, self employment or by receiving another Qualifying Benefit, then
  • go to .

If six months have not passed since the award date of contributions based Job Seekers Allowance

  • there is entitlement for the six month period contributions based Job Seekers Allowance is in payment
  • note the manual file of the date the six month period will have passed
  • depending when the six months are up consider waiting for this date before proceeding to next step.

or 

  • go to next step to calculate entitlement, then recalculate at a six months stage if entitlement can continue under any other condition
  • go to .

Step 29

Before you manually calculate CTC, decide which elements of tax credits are to be paid. For example - baby element / children / qualifying young person.

Note: The baby element has been withdrawn. Any new claims made after 6 April 2011 with a baby under the age of one year that requires backdating into Previous Year (PY) will only receive the baby element of the family element for any entitlement in the 93 days prior to 6 April 2011.

Note: Where the customer is living in the OMS and they have a partner living in the OMS, use both income figures, however, do not include the income figure of the ‘person entitled to claim’.

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.

  • use the SEES ‘Tax Credits Entitlement Calculator’ to calculate CTC, for how to do this, use TCM1000089 

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

Note: Where the period from the date of E Form 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).

  • calculate the effective date of claim, you must also take into account

    • claims made may be backdated up to 31 days

    Note: Claims made prior to 6 April 2012 may be backdated up to 93 days

    • the date the person entitled to claim started employment / self employment and paid NICS or started to receive contribution based JSA or a Qualifying benefit.
    • Note:Contribution based JSA is only paid for six months. After the six months has expired, the person entitled to claim must satisfy another condition.
    • the end date if the award is for a closed period
    • child’s date of birth
  • print off a copy of the SEES calculation to keep with the manual file
  • go to .

Step 30

Use the shared SEES decision tree ‘Tax Credit EEA Competence for Family Benefits’ to decide whether the OMS or the UK are competent to pay the family benefits. For how to do this, use TCM1000257.

Note: Use the ‘person entitled to claim’ as ‘Customer 1’ and the OMS customer as ‘Customer 2’. Where the customer in the OMS has a partner living with them, contact your TALLO for advice.

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

If the OMS is competent to pay the family benefits

  • contact TALLO to consider supplement action
  • once a supplement has been considered, go to .

If there has been a switch in competency to pay the 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 31

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

Step 32

Check for any overlap of entitlement to family benefits paid in the OMS and the UK.

If family benefits have / are being paid in the OMS

  • update IGDB. For how to do this, use TCM1000408 
  • complete and issue E001 to OMS advise reimbursement available. For how to do this, use TCM1000334 
  • consider whether an interim payment can be sent to the OMS customer
  • to issue payment or on return of enquiries from OMS, go to .

If family benefits have not been paid in the OMS go to .

Step 33

Check the manual file to determine if all the following details are noted

  • details of all the children and / or young persons
  • full name
  • date of birth
  • child responsibility start date, if it is different from the date of birth
  • child benefit reference number, if known
  • main carer details
  • payment frequency
  • whether the customer has provided details of a bank account or wants to be paid by giro.

If all the details are noted in the manual file, go to .

If all the details are not noted in the manual file

  • obtain the missing details from the tax credits computer. For how to do this, use TCM1000249 
  • update the manual file with the missing details
  • go to .

Step 34

Access function ‘Manage Verification Failures’ for the claim you are working.

Note: 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 the rule 12 verification failure
  • manually verify any other verification failures
  • go to .

Step 35

Process the claim to status ‘Award Issued’

Note: You must access ‘Amend Application Corrections’ following the process at .

  • update the manual file with the action you will taken
  • go to .

Step 36

Check if 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 to determine if the claim status has changed.

Note: Do not refer the case to your TALLO without first allowing 48 hours for the status of the claim to change to ‘Award Issued’.

  • check if the status of the claim is now ‘Award Issued’. For how to do this, use TCM1000118.

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

If the status of the claim is not ‘Award Issued’, contact your TALLO for advice on what to do.

Step 37

Check the manual file to determine if the customer has provided details of a bank account

If the OMS customer has provided bank account details, go to .

If the OMS customer has not provided bank account details 

  • update Household Notes with the message II64 from TCM0160040. For how to do this, use TCM1000001 
  • go to .

Step 38

Note: You must complete Step 40 to Step 41 in their entirety at the same time to avoid any system generated payments and forms being issued to the customer.

  • 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

  • go to .

Step 39

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 on what to do.

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’.

  • go to .

Step 40

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 41

Check if an award version has been created which has a payment schedule. For how to do this, use TCM1000373.

Note: The tax credits computer can take up to 48 hours for the payment schedule to be set up. During this time you must check regularly to determine if a payment schedule has been set up.

If an award version has been created that has a payment schedule set up

  • make a note of any payments that have been issued. For how to do this, use TCM1000312 
  • go to .

If an award version has been created that has not had a payment schedule set up, go to .

Step 42

Note: The tax credits computer can take up to 48 hours for the payment schedule to be set up. During this time you will need to check regularly to determine if a payment schedule has been set up.

If a payment schedule has not been set up, refer to TALLO for advice.

Note: Do not refer to your TALLO without first allowing 48 hours for the payment schedule to be set up.

If a payment schedule has been set up (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • make a note if any payments have been made. For how to do this, use TCM1000312 
  • go to .

If a payment schedule has not been set up (This content has been withheld because of exemptions in the Freedom of Information Act 2000) , contact your TALLO for advice.

Note: Do not refer to your TALLO without first allowing 48 hours for the payment schedule to be set up.

Step 43

Suspend the payments. For how to do this, use TCM1000232 

Note: This will create a ‘Suspended Payments (Payments)’ work list item.

  • transfer the ‘Suspended Payments (Payments)’ work list item to your MU. For how to do this, use TCM1000023 
  • set an action date of 180 days in the future on the ‘Suspended Payments (Payments)’ work list item. For how to do this, use TCM1000008 
  • update the manual file with the action you have taken
  • update Household Notes with the message II54 from TCM0160040. For how to do this, use TCM1000001 
  • go to .

Step 44

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

If payments have not been made to the OMS customer, go to .

If giro payments have been made to the OMS customer

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

If BACS payments have been issued to the OMS customer

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

Step 45

If the BACS payments could not be recalled

  • make a note of the net amount paid on form TC648. For how to do this, use TCM1000312 
  • go to .

If the BACS payments have been recalled, go to .

Step 46

Complete the appropriate payment details forms and pass them to your manager for checking

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

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

  • once the appropriate payment details forms have been passed as correct by your manager, go to .

Step 47

Using the information on the form TC648 and ‘Manual Calculation Sheet’

  • complete a TC602 manual award notice for the CTC award. For how to do this, use TCM1000275 
  • include variable ‘nil award to WTC’
  • complete SEES letter TC1124

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.

  • issue TC602 manual award notice to the OMS customer
  • update Household Notes with the message II35 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001 
  • update Household Notes with the message II52 from TCM0160040. For how to do this, use TCM1000001 
  • send the appropriate payment details forms to the Manual Payments Team
  • go to .

Step 48

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 

  • keep a copy of the form in the manual file
  • pass the ‘Payment stencil’ to the Manual Payments Team
  • pass the manual file to the Renewals Team.

Step 49

To disallow because there is no entitlement under derived rights

  • update the IGDB. For how to do this, use TCM1000408 
  • inform OMS using E001 or SED. For how to do this, use TCM0305100 
  • prepare for issue with TC602 SEES letter

    • TC1124 - where there is no entitlement to CTC under Derived Rights

    or 

    • TC1096 - where the OMS have not returned the E forms or SEDs
  • send a manual form TC601 to the customer
  • update Household Notes with the message II65 from TCM0160040. Make sure you select the ‘Retained’ checkbox. For how to do this, use TCM1000001.

Step 50

To reject the claim

Note: Use the child benefit number where there is no NINO.

  • update the IGDB. For how to do this, use TCM1000408 
  • inform OMS using E001 or SED
  • follow the guidance in TCM0070020 to reject the claim, insert the reason in the free text facility as “you have not provided enough information to trace”.

Note: User to insert name of person entitled to claim.