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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas: international: pre-award: international pre-award claims - initial action

Reasons not to follow this guidance

You do not need to follow this guidance if

  • you are dealing with a case that is ‘Award Issued’ or there is a current award in payment.

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 know the nationality of the customers. You can get this from NIRS.

Background

Tax credits claims where one or more customers live or work abroad or a child lives abroad need to be dealt with differently to other claims.

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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.

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.

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Step 1

If you have a reply to correspondence issued to the customer as part of this guidance or an expired BF, go to Step 25.

If you do not have a reply to correspondence issued to the customer as part of this guidance, go to Step 2.

If you have a physical tax credit claim form that has no link to the United Kingdom (UK), please contact your Technical Advice Line Liaison Office (TALLO) for further advice.

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Step 2

Select ‘Pm1’ from the toolbar

If all the bank details are complete, go to Step 4.

If there are no bank account details

  • consider any Child Benefits payments paid into a bank account. For how to do this, use TCM1000230
  • for customer’s not in receipt of Child Benefit, consider any payments of Income Support, Job Seekers Allowance or Employment and Support Allowance paid into a bank account. For how to do this, use TCM1000260
  • go to Step 3.

Step 3

If the customer currently has their Child Benefit, Income Support, Job Seekers Allowance or Employment and Support Allowance paid into a bank account

  • enter the bank details onto the system
  • issue SEES letter TC2037 to inform the customer that bank details have been used from a departmental system
  • update Application notes with message LI60 from TCM0162060. For how to do this, use TCM1000028
  • then go to Step 4.

If the customer does not have their Child Benefit, Income Support, Job Seekers Allowance or Employment and Support Allowance paid into a bank account and you have been unable to trace bank account details

  • note this on form TC648
  • go to Step 4.

Note: You must obtain bank details before you can process the claim

Step 4

Note: You must have access to the tax credits computer system (NTC) and the Child Benefit computer systems (CBIX) and (CBOL).

Your manager will tell you which work list to access. Select the claim you want to work.

If you are working Verification Failures, go to Step 5.

If you are working Incompletes, go to Step 5.

Note: If the case has a Standardised Message screen note stating that the customer is ‘Subject to immigration control (STIC) and not entitled to 2nd adult element of WTC’, follow the guidance in TCM0290155.

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Step 5

On the ‘Applicant 1’ screen, select ‘Ap1’ from the toolbar.

If there is a tick in ‘Other’ box to show the customer lives outside the UK or the customer’s address is abroad

  • note this on form TC648
  • go to Step 6.

If there is a tick in ‘UK’ box to show the customer lives in the UK and the customer’s address is a UK address, go to Step 6.

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Step 6

Select ‘Wk1’ from the toolbar.

If there is a tick in ‘Other’ box in ‘Place of work’ or the work address is abroad

  • note this on form TC648
  • go to Step 7.

If there is a tick in ‘UK’ box in ‘Place of work’ and the work address is a UK address, go to Step 7.

If the customer does not work

  • note this on form TC648
  • go to Step 7.

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Step 7

Select ‘Ap2’ from the toolbar.

If there is not a second customer, go to Step 9.

If there is a tick in ‘Other’ box to show the customer lives outside the UK or the customer’s address is abroad

  • note this on form TC648
  • go to Step 8.

If there is a tick in ‘UK’ box to show the customer lives in the UK and the customer’s address is a UK address, go to Step 8.

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Step 8

Select ‘Wk2’ from the toolbar.

If there is a tick in ‘Other’ box in ‘Place of work’ or the work address is abroad

  • note this on form TC648
  • go to Step 9.

If there is a tick in ‘UK’ box in ‘Place of work’ and the work address is a UK address, go to Step 9.

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Step 9

Select ‘Sm’ from the toolbar. You will be taken to the ‘Summary Information’ screen.

If there is a message in the ‘Application Notes’ field stating either customer lives or works outside the UK

  • note this on form TC648
  • go to Step 10.

If there is not a message in the ‘Application Notes’ field stating either customer lives or works outside the UK, go to Step 10.

If either of the following messages are shown, ‘Clm man cap, AP1/2 states clm lvs & wks UK, but clm recd from (country) with foreign stp. R12 VF man input’ or ‘Clm man cap, AP1/2 non UK add - clm recd from (country) with foreign stp. R12 VF man input’

  • this means that the claim has been manually captured after being received from another country
  • treat the information in this note as some form of abroad involvement
  • make a note of this on form TC648
  • continue with this guidance as normal.

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Step 10

If there is a message in the ‘Application Notes’ field stating a child or children live outside the UK

  • note this on form TC648
  • go to Step 11.

If there is not a message in the ‘Application Notes’ field stating a child or children live outside the UK, go to Step 11.

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Step 11

If there is a message stating that the case is a polyandrous or polygamous marriage or there are more than 18 children, transfer the worklist item to the ‘UK Complex’ MU. For how to do this, use TCM1000023. Use TCM0322460 for the correct MU number.

If there is a message stating that the case involves ESA or a custodial sentence, transfer the worklist item to the ‘UK Complex’ MU. For how to do this, use TCM1000023. Use TCM0322460 for the correct MU number.

If there is not a message, go to Step 12.

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Step 12

Select ‘Ch’ from the toolbar.

If there are children on the claim, go to Step 13.

If there are not children on the claim, go to Step 19.

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Step 13

Check whether a B&C1 has been issued using CBO case notes

If a B&C1 has already been issued but has not yet been returned, BF the case in line with CBO BF

If a B&C1 has been issued and returned

  • request a copy from CBO
  • go to Step 14.

If a B&C1 has not been issued, go to Step 14.

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Step 14

Access CBOL. For how to do this, use TCM1000230

If a Child Benefit (ChB) number is obtained, go to Step 15.

If a ChB number is not obtained, go to Step 18.

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Step 15

Check in the ‘LOC Code’ field. For how to do this, use TCM1000316.

If the ‘Loc Code’ field shows the letters ‘EC’, go to Step 16.

If the ‘Loc Code’ field does not show the letters ‘EC’, go to Step 18.

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Step 16

In the ‘General Notes Details’ screen, check if the message ‘EC Regs apply’ is present.

If the ‘EC Regs apply’ message is present, go to Step 17.

If the ‘EC Regs apply’ message is not present, go to Step 18.

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Step 17

On TC648 make a note

  • of the ChB number
  • that CBO are paying under EC Regs
  • of the rate being paid for the appropriate period. For how to do this, use TCM1000318
  • whether ChB is in payment for all children on the claim
    then
  • go to Step 18.

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Step 18

If you have noted any form of abroad involvement on form TC648, go to Step 19.

If you have not noted any form of abroad involvement on form TC648, go to Step 32.

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Step 19

There is abroad involvement on this claim

  • note on form TC648 if either customer is a Crown Servant or NAAFI worker. For how to do this, use TCM1000518

If either customer is a Crown Servant or NAAFI worker, go to Step 29.

If neither customer is a Crown Servant or NAAFI worker

  • access the International Group Database (IGDB) and check if CBO have noted that the ChB claim is a Derived Right case or an Orphans case. For how to do this, use TCM1000408
  • where appropriate, note on form TC648 that this is a Derived Right or Orphans case
  • go to Step 20.

If the customer lives in a Rest of the World country,follow the guidance in TCM0306500

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Step 20

If the only form of abroad involvement you have noted is that the customer states they live outside the UK but their address is a UK address, go to Step 21.

If there is any other form of abroad involvement noted, go to Step 29.

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Step 21

If applicant 1 is a UK national, go to Step 27.

If applicant 1 is not a UK national, go to Step 22.

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Step 22

Where the customer has ticked that they normally live ‘Other’ but have provided a UK address in the ‘Contact details’ field of the tax credits computer or they normally live ‘Other’ but this field states a country town or area in the UK

  • phone the customer to obtain the information you need. Follow the guidance in TCM0094080
  • ask the customer
    • the current address of the customers who have said they normally live ‘Other’ but have provided a UK address
    • where they normally live
      Note: By ‘normally live’, we mean the address where each person currently resides.
    • where their partner lives (if applicable)
    • where the children live
    • for confirmation of the current work details for each relevant person - for example, whether they work in the UK or OMS
      then
    • make a note of the information provided.

If you obtain all the missing information from the customer, go to Step 24.

If you do not obtain all the missing information from the customer, go to Step 23.

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Step 23

Issue form TC664 or B&C1 (depending on what information is required from the customer) to ask

  • the current address of the customers who have said they normally live ‘Other’ but have provided a UK address
  • where they normally live
    Note: By ‘normally live’, we mean the address that each person currently resides.
  • where their partner lives (if applicable)
  • where the children live
  • confirm the current work details for each relevant person - for example, do they work UK or OMS
    then
  • BF the casepapers for 30 days
  • select all the linked work list items for the claim you are working. For how to do this, use TCM1000004
  • set an action date on each linked work list item for 30 days in the future. For how to do this, use TCM1000008
  • transfer all linked work list items to the appropriate BF MU
  • update Application Notes with Standardised Message II09 from TCM0160040. For how to do this, use TCM1000028
  • note the action you have taken and record the BF date on the manual file and maintain the BF run
  • make a note of the guidance and step you will worked on form TC648
  • take no further action.

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Step 24

Using the information provided by the customer, go to Step 2.

Note: Where that guidance refers to checking the systems and making a note on TC648, take into account any new information the customer has provided in their response.

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Step 25

If you have received all the information you need, go to Step 27.

If you have not received all the information you need or there has been no reply, go to Step 26.

If your enquiry has been returned undelivered, follow the guidance in TCM0184220.

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Step 26

Disallow claim

  • update Application Notes with appropriate Standardised Message
  • follow guidance in TCM0070100
  • take no further action.

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Step 27

From the information on form TC648, check if

  • ‘Other’ was ticked in the ‘Normally Live’ or ‘Normally Work’ fields on the tax credits computer
  • the ‘Country’ field on the tax credits computer showed a UK country, town or city
  • NIRS showed the customer’s address to be a UK address
  • the customer’s address on the tax credits computer is a UK address.

If the customer’s claim meets all the criteria, go to Step 28.

If the customer’s claim does not meet all the criteria, go to Step 29.

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Step 28

From the information on form TC648, correct the customer’s details on the tax credits computer.

If you are working verification failures

  • update Application Notes with the message HD01 from TCM0160020. For how to do this, use TCM1000028
  • change the tick in either the ‘Normally Live’ or ‘Normally Work’ field to correct the customer’s details
  • correct the R12 verification failure. For how to do this, use TCM1000092
  • send the completed form TC648 to storage. Follow the guidance in TCM0074140
  • take no further action.

If you are working Incompletes

  • correct the customer’s details on the tax credits computer
  • change the tick in either the ‘Normally Live’ or ‘Normally Work’ field to correct the customer’s details
  • update Application Notes with the message HD01 from TCM0160020. For how to do this, use TCM1000028
  • select ‘OK’
  • select ‘Process’
  • send the completed form TC648 to storage. Follow the guidance in TCM0074140
  • take no further action.

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Step 29

Access the details of the claim on the tax credits computer

  • note on form TC648 if the customers who works in the UK is aged under 25 or aged 25 or over
  • note on form TC648 the number of hours worked for the customers who work in the UK
  • go to Step 30.

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Step 30

For all the customers or children you noted any form of abroad involvement check to see if the disability box has been ticked. For how to do this, use TCM1000109.

If the disability box has been ticked

  • remove the tick from the disability box
  • go to Step 31.

If the disability box has not been ticked go to Step 31.

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Step 31

If you are working a Verification Failure work list item, follow the guidance in International claims pre-award guidance aid. For how to do this, use TCM1000257.

If you are working an Incomplete work list item, follow the guidance in TCM0306400.

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Step 32

There is not any abroad involvement on this claim. Follow the guidance in TCM0306300.