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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas: international: miscellaneous: EEA involvement - adding a child or qualifying young person post award

Reasons not to follow this guidance

You do not need to follow this guidance if

  • the award is not at status ‘Award issued’
  • the child or young person has been excluded from the award. For how to do this, use TCM1000241.

Checklist

Before you follow this guidance, make sure

  • you have the correct user roles to follow this guidance. 
  • 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. For how to do this, use TCM1000408
  • the status of the award is ‘Award Issued’. For how to do this, use TCM1000025
  • you have set up a manual file and record on form TC648
  • at least one customer lives and works in the United Kingdom (UK)
  • at least one customer is an EEA national (do not include UK nationals)
  • you have access to, and know how to use, the SEES Tax Credits Entitlement Calculator. For how to do this, use TCM1000089
  • there are no other change of circumstances reported
  • you have access to Child Benefit on Line (CBOL) and know how to use it
  • the customer has a right to reside in the UK.

Background

This guidance is for staff dealing with European Economic Area (EEA) nationals who want to add or re-include a child or qualifying young person in a tax credits award that is currently in payment.

In these cases, you need to verify the make up of the family members living in the other member state (OMS) before you can pay Child Tax Credit (CTC) to the customer.

Where the customer wants to add more than one child or qualifying young person, this guidance must be followed for each individual child or qualifying young person.

You will receive a pseudo Work Area Mailbox (WAM) referral or physical change of circumstances correspondence when a customer wants to add or re-include a child or qualifying young person to their award.

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.

Step 1

If you have received a WAM referral or physical change of circumstance request, go to .

If you have received a reply to the form TC664 relating to missing information for the child or qualifying young person, go to .

If you have received a reply to the E400 series form, SED or a UKPL, go to .

If you are dealing with an expired BF date on an E400 series form, SED or a UKPL, go to .

Step 2

Check Household Notes to determine if the claim is a WTC upfront case. For how to do this, use TCM1000067.

If the claim is a WTC upfront case, refer to TALLO

If the claim is not a WTC upfront case, go to .

Step 3

Look at the WAM referral or correspondence in conjunction with the tax credits computer and CBOL to confirm you have all the following information you need to process the customer’s request to add or re-include the child or qualifying young person. For how to do this, use TCM1000249 and TCM1000230

Note: You must attempt to obtain the information listed below to be able to decide if the child or qualifying young person can be added or re-included and from when.

  • full name and date of birth of the child or qualifying young person to be added or re-included
  • the date the child or qualifying young person became part of the customer’s household or the date their circumstances changed
  • the date the customer became responsible for the child or qualifying young person
  • the date we received the request to add the child or qualifying young person
  • the status of the current claim, the date of claim and the date the award began
  • the dates of any child disability or severe disability
  • whether or not the qualifying young person is in FTNAE and the date they started
  • the name and level of the FTNAE course
  • the actual date they enrolled or were accepted for the FTNAE course before their 19th birthday
  • number of hours the child or qualifying young person is studying per week

Note: For a list of non-advanced and advanced education courses access the Benefits & Credits intranet homepage. Select ‘C’ on the A-Z Index, select ‘CBO overall guidance’ and select ‘Full Time Education’.

  • where CTC is not currently in payment, the preferred pay frequency and who is the main carer in a joint claim
  • where the child or qualifying young person has continuously lived in the UK from the date the customer is claiming responsibility
  • the full address where the children or qualifying young persons live
  • where the children or qualifying young persons live in the OMS, the dates they have lived there
  • the name and address of the relevant family benefits office in the OMS
  • the PESEL for Polish customers

then

  • make a note of the missing information on form TC648 and mark the form as ‘Info’
  • go to .

Step 4

Using the notes you have made in the manual file and the information held on the tax credits computer, CBOL and the IGDB check if there is any missing information you need.

If you need to obtain any missing information from the customer, go to .

If you do not need to obtain any missing information from the customer, go to .

Step 5

Contact the customer to obtain the missing information you need. Follow the guidance in TCM0094080.

If you have contacted the customer and obtained the missing information, go to .

If you could not contact the customer

  • send form TC664 to the customer who lives in the UK to obtain the missing information
  • update Household Notes with the message II09 from TCM0160040. For how to do this, use TCM1000001
  • BF the manual file and maintain the BF run
  • take no further action.

Step 6

If the customer and the children and/or qualifying young persons live in the UK, follow the guidance in TCM0264180.

If any of the customers or the children and/or qualifying young persons do not live in the UK, go to .

Step 7

If the child or young person lives with the customer’s partner in the OMS, go to .

If the customer does not have a partner, go to .

Step 8

Check the claim to determine if the partner is already included in the award. For how to do this, use TCM1000129.

If the partner is already included in the award, go to .

If the partner is not already included in the award

  • invite the customer to make a new claim. Follow the guidance in TCM0044080
  • refer to TALLO.

Note: You will need to end the award once the new claim has been received.

Step 9

If the child or qualifying young person lives in the OMS, go to .

If the child or qualifying young person lives in the UK and there is still abroad involvement in the award

  • verify the child or qualifying young person. Follow the guidance in TCM0264180
  • go to .

If the child or qualifying young person lives in the UK but there is no abroad involvement in the award, follow the guidance in TCM0264180.

Step 10

If the customer has told you they are mainly financially responsible for the child or qualifying young person, go to .

If the customer has told you they are not mainly financially responsible for the child or qualifying young person

  • do not add the child or qualifying young person
  • consider making further enquiries for any other children and/or qualifying young persons to establish if the customer is mainly financially responsible for them
  • go to .

Step 11

If CTC has been awarded for any other children and/or qualifying young persons that the customer is responsible for

  • complete the SEES ‘Free Text Letter (NINO/PAYE)’ to tell the customer why you have not included all the children and/or qualifying young persons they have claimed for in their award of CTC
  • retain a copy of the form in the manual file
  • update Household Notes with the message NG08 from TCM0164020. For how to do this, use TCM1000001
  • select the ‘Retained’ checkbox
  • take no further action.

If there is no CTC awarded for any other children and/or qualifying young persons

  • disallow the claim for CTC
  • send a manual form TC601 to the customer
  • update Household Notes with the messages NG08 from TCM0164020 and II51 from TCM0160040. For how to do this, use TCM1000001
  • select the ‘Retained’ checkbox
  • take no further action.

If the customer is not financially responsible for any other children and/or qualifying young persons that CTC is being paid for, refer to TALLO.

Step 12

If the child or qualifying young person has been verified, go to .

If the child or qualifying young person has not been verified

  • update Household Notes with the messages II83 from TCM0164020. For how to do this, use TCM1000001
  • send the documents to storage. For how to do this, use TCM0074140
  • take no further action.

Step 13

Check the notes you have made in the manual file and the information held on the IGDB.

If the E400 series forms or SEDS have been issued for all the children and/or qualifying young persons on the tax credits award

  • set a BF date on the manual file for

    • Polish OMS - three months in the future
    • any other OMS - two months in the future
  • update Application Notes with the message II40 from TCM0160040. For how to do this, use TCM1000028
  • update the manual file with the action you will taken
  • take no further action.

If the E400 series forms or SEDS have not been issued for all the children and/or qualifying young persons on the tax credit award, go to .

Step 14

Using the notes you have made in the manual file

  • determine the appropriate E400 series form or SED to issue to the OMS where the children and qualifying young persons live. For how to do this, use TCM1000334
  • send the E400 series form or SED to the OMS
  • update the IGDB with details of the E400 series form or SED you have issued to the OMS
  • set a BF date on the manual file for

    • Polish OMS - three months in the future
    • any other OMS - two months in the future
  • update Application Notes with the message II40 from TCM0160040. For how to do this, use TCM1000028
  • update the manual file with the action you have taken
  • take no further action.

Step 15

Check the manual file to determine who issued the E400 series form or SED.

If Child Benefit Office issued the E400 series form or SED, go to .

If Tax Credit Office issued the E400 series form or SED, go to .

Step 16

Check the IGDB to determine

  • whether a reply from the OMS has been received
  • when the E400 series form or SED was issued
  • whether a duplicate E400 series form or SED has been issued
  • whether it is been more than three months since the last E400 series form or SED was issued.

If a reply from the OMS has been received

  • contact Child benefit Office (CBO) to tell them you need the information on the E400 series form or SED. Follow the guidance in TCM0304150
  • go to .

If a duplicate E400 series form or SED has 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 a duplicate E400 series form or SED has 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 series form or SED and they need to check whether any duplicate form needs to be issued. Follow the guidance in TCM0304150
  • make a note on the manual file of the phone 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 a duplicate E400 series form or SED has 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 a duplicate E400 series form or SED has been issued and three months have elapsed, go to .

Step 17

Contact CBO to check that an EC27 has been sent to the customer. Follow the guidance in TCM0304150.

Note: An EC27, also known as a DL EC27, is a form used by CBO to tell the customer in the UK that they have not had a reply to the E401 and asks the customer to chase it up themselves.

If an EC27 has been sent, no reply has been received, and more than three months have elapsed since the E400 series form or SED was issued, refer to TALLO.

If an EC27 has been sent, no reply has been received and three months have not elapsed since the E400 series form or SED was 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 an EC27 has not been sent

  • ask CBO to arrange for one to be sent
  • set a BF date of three weeks from today’s date on the manual file
  • take no further action.

Step 18

Check that the correct E400 series form or SED has been issued to the correct OMS. Follow the guidance in TCM0305100.

If a duplicate E400 series form or SED has been issued to the correct OMS, refer to TALLO.

If a duplicate E400 series form or SED has not been issued to the correct OMS, go to .

Step 19

Issue a duplicate E400 series form or SED to the OMS. Follow the guidance in TCM0305100

  • update the IGDB to show that a duplicate E400 series form or SED has been issued
  • update the manual file to show that a duplicate E400 series forms or SED has 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 20

Consider the reply that has been received from the OMS. Follow the guidance in TCM0305100.

If the OMS confirm the family are in different locations

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

If the OMS confirm the family are in the UK

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

If the OMS states the customer is not co-operating with their enquiries, go to .

Step 21

Check the E400 series form or SED 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 22

Contact the customer and ask them for the date the rest of the family moved to the UK. Follow the guidance in TCM0094080.

If you obtain the date when the rest of the family moved to the UK

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

If you do not obtain the date when the rest of the family moved to the UK

  • send form TC664 to the customer to obtain the missing information you need
  • update Household Notes with the message II09 from TCM0160040. For how to do this, use TCM1000001
  • BF the manual file and maintain the BF run
  • take no further action.

Step 23

Check the date the rest of the family moved to the UK to determine if the family were in the UK before the date the customer became responsible for the new child or qualifying young person.

If the rest of the family were not in the UK at the date the customer became responsible for the new child or qualifying young person

  • make a note on the 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
  • refer to TALLO.

If the rest of the family were in the UK before the date the customer became responsible for the new child or qualifying young person, follow the guidance in TCM0284080.

Step 24

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

  • complete part A of the DL EC27
  • send it to the customer in the UK
  • set a BF date of two months (or if the customer is Polish - 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, refer to TALLO.

Step 25

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

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

If the OMS is competent to pay the family benefits

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

Note: Until this guidance is published, refer to TALLO.

  • 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 26

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, refer to TALLO.

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

Step 27

Check the E400 series form or SED to determine if the dates the OMS have confirmed match the period CTC is being calculated for. For how to do this, use TCM1000264.

If the dates the OMS has confirmed match the period CTC is being calculated for, go to .

If the dates the OMS has confirmed do not match the period CTC is being calculated for, go to .

Step 28

Check the manual file for the nationality of the customer.

If the customer is Polish

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

If the customer is any other nationality

  • send an E401 form or F001 to the OMS. Follow the guidance in TCM0305100
  • go back to .

Step 29

If the OMS has confirmed the family includes the new child or qualifying young person, go to .

If the OMS has confirmed the family does not include the new child or qualifying young person, follow the guidance in TCM0288540.

Step 30

Check the ‘Complex Case’ marker has been set. For how to do this, use TCM1000024.

Note: Where the ‘Complex Case’ marker has been set, the message ‘Complex Case’ will display on the ‘Application Summary’ screen.

If the ‘Complex Case’ marker has been set, go to .

If the ‘Complex Case’ marker has not been set

  • set the ‘Complex Case’ and ‘Manual Correspondence’ markers. 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

  • go to .

Step 31

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 .

If cross award recovery was not underway before the claim became complex, go to .

Step 32

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
  • go to .

Step 33

Before applying the change, follow the guidance in TCM0042280

If the original award was nil, follow the guidance in TCM0288540.

If the original award was not nil, go to .

Step 34

Check whether the payments have been suspended. For how to do this, use TCM1000368.

If the payments have not been suspended, go to .

If the payments have been suspended, go to .

Step 35

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 of 180 days on the Suspend Payments (Payment) work list. For how to do this, use TCM1000008
  • make a note on form TC648 of the action you will taken
  • update Household Notes with the messages II10 from TCM0160040. For how to do this, use TCM1000001
  • go to .

Step 36

If the qualifying young person is aged 19, refer to TALLO.

If the qualifying young person is not aged 19

  • add the new child or qualifying young person to the award. For how to do this, use TCM1000239
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032.
  • update Household Notes with the relevant message from TCM0160040. For how to do this, use TCM1000001

Note: The child or young person 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 young person to the award, follow the guidance in TCM0288540.

If a warning message did not display, follow the guidance in TCM0288540.

Step 37

If CTC has been awarded for any other children or qualifying young persons

  • complete the SEES ‘Free Text Letter (NINO/PAYE)’ to tell the customer why you have not included all their children and/or qualifying young persons they have claimed for in their award of CTC
  • retain a copy of the form in the manual file
  • update Household Notes with the message NG08 from TCM0164020. For how to do this, use TCM1000001. Make sure you select the ‘Retained’ checkbox
  • go to .

If CTC has not been awarded for any other children or qualifying young persons, disallow the claim for CTC. To do this

  • send a manual form TC601 to the customer
  • update Household Notes with the messages NG08 from TCM0164020 and II51 from TCM0160040. For how to do this, use TCM1000001.
  • select the ‘Retained’ checkbox
  • go to .

Step 38

Email the details of the case to the Embedding Compliance Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • enter ‘CHILD NOT ADDED’ (use capital letters) in the ‘Subject’ field
  • enter the following in the body of the email

    • customer’s NINO
    • date of the claim
    • child’s or qualifying young person’s full name
    • child’s or qualifying young person’s date of birth
    • the reason for the referral - for example, ‘Child not added due to an incomplete reply’ or ‘Child not added due to fraudulent documents being supplied’.