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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 - Crown servants

Reasons not to follow this guidance

Neither customer on the claim is a Crown Servant or NAFFI Worker.

Checklist

Before you follow this guidance make sure you have followed the guidance in TCM0306100.

Background

Note: This guidance does not include Crown Servants posted overseas whose partner is a non-UK national who does not have a National Insurance number.

If both the Crown Servant and partner are non-European Economic Area (EEA) nationals - for example, a Ghurkha married to a Nepalese - the claim should be referred to the Persons from Abroad Team (PFA) for them to consider residency.

If the customer provides details of any benefits paid by an Other Member State (OMS) in Euros or other foreign currency, you will need to convert the amount to Sterling.

To convert any benefits into Sterling you must use the Average Net Rate of Exchange for the tax year in which the benefits were paid.

The Ministry of Defence (MoD) operates two accredited childcare schemes. These must be treated the same as registered childcare providers in the UK.

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.

Note: Where the entitlement conditions for CTC

  • are not satisfied at the date of claim

and

  • are satisfied on a date, the later date being after the date of claim but not later than the date on which the decision is being taken

an award of CTC should be made from the later date.

Step 1

If you are returning to this guidance following sending a TC655, go to .

If you are returning to this guidance following the receipt of a SED, go to .

If none of the above apply, go to .

Step 2

Access CBOL. For how to do this, use TCM1000230.

If a Child Benefit (CHB) number is obtained, go to .

If a Child Benefit (ChB) number is not obtained, go to .

Step 3

Check to see if the children on the Tax Credits claim are verified on CBOL already.

If the children are verified on CBOL, go to .

If the children are not verified on CBOL,

Check the Application Notes to see if there is a note from Rule 2 team saying they have already resolved a Rule 2 verification failure. For how to do this, use TCM1000021.

  • go to .

Step 4

If there is a note to say the Rule 2 team have issued a TC655 and have resolved the Rule 2 verification Failure, go to .

If there is not a note to say Rule 2 team have issued a TC655 and have resolved the R2 verification Failure, go to .

Step 5

Issue a TC655 to the customer for each child you need to verify

  • BF the physical file and worklist item for three weeks
  • take no further action.

Step 6

If the TC655(s) have been completed and returned, go to .

If the TC655(s) were not returned after BF and reminders or the children cannot be verified

  • remove the children from the claim. For how to do this, use TCM1000300.
  • go to .

Step 7

Access the function ‘Application Correction’

  • go to the ‘Childcare’ screen
  • establish if there are childcare costs.

If there are childcare costs, go to .

If there are no childcare costs, go to .

Step 8

Establish whether the childcare costs are being paid through an approved or registered scheme.

If childcare is approved, go to .

If the childcare is not approved, go to .

Step 9

Use function ‘Application Correction’

  • go to the ‘Childcare’ screen to delete all the childcare details
  • go to .

Step 10

If both customers are Crown Servants, go to .

If one customer is a Crown Servant and the other customer does not work, go to .

If one customer is a Crown Servant and the other customer works, go to .

Step 11

If the customer who is not a Crown Servant is a NAFFI worker, go to .

If the customer who is not a Crown Servant is not a NAFFI worker, go to .

Note: Where you have a partner of a Crown Servant and they work for any of the following:

  • GLSU
  • Sound and Vision
  • Salvation Army
  • Church Army

the case may be able to be paid as business as usual, on the system. This list is not exhaustive. If you have any doubts or queries, please contact your TALLO for further advice.

Step 12

Establish if there are any Family benefits paid by the OMS

  • input a note in the free format screen ‘Complex Case, do not action, note any changes in this note’. For how to do this, use TCM1000036.
  • input a note in Application Notes note stating the stating that SEDS have been issued to the OMS. For how to do this, use TCM1000021.
  • issue the appropriate SED to the relevant OMS authority. For how to do this, use TCM0305100.
  • complete the International Group Database to show that the SED has been issued. For how to do this, use TCM1000448.
  • BF the worklist item and physical file for 3 months
  • take no further action.

Step 13

If both customers have a NINO or NONO, go to .

If one of the customer’s does not have a NINO, go to .

Step 14

  • complete form CA8288 for each customer who requires a NINO and e-mail it to your line manager for them to complete the supervisor tick box.
  • transfer the worklist item to STU MU, 286101 and set an action date of seven days
  • BF the case for seven days to await a NINO being allocated

Note: On expiry of BF, check to see if a NINO has been allocated for the relevant customer.

Note: Crown Servants and their partners what are living on a base, for example, are classed as living on UK soil, they can be allocated a NINO. Any partner who is living abroad and not classed as living on UK soil should be allocated a NONO.

Step 15

When the action date has expired.

Note: Where you have set an action date twice (a total of 14 days) and STU still have not have allocated a NINO or NONO, contact your TALLO for advice on what to do.

If STU has provided a NINO or a NONO, go to .

If STU has not yet replied, go back to .

If STU has rejected the claim

  • update the manual file with details of the STU decision
  • take no further action.

Step 16

Check the returned SED to see if the customer is in receipt of family benefit paid by the OMS. For how to do this, use TCM0305100.

If the OMS state there are no family benefits in payment, go to .

If the OMS state there are family benefits in payment, go to .

Step 17

If you are working a ‘Verification Failure’, go to .

If you are working an ‘Incomplete’, go to .

Step 18

In the ‘Application’ Notes screen

  • enter the message ‘Customer(s) Crown Servants, case can be paid as BAU’
  • select ‘OK’
  • select ‘Process’
  • go to .

Step 19

If the message ‘The information captured indicates that the application may be ineligible. This application may be rejected.’ Appears

  • select ‘Process’
  • make a note of the customers NINO and check to see if a ‘Verification Failure’ has been generated, and the MU it is located in
  • go to .

If the message ‘Application with be processes. Do you with to processed?’ appears

  • select ‘Process’
  • go to .

Step 20

Check to see if a ‘Verification Failure’ is present. How to do this, use TCM1000020.

Note: Where you have processed an ‘Incomplete’ it may take 24 hours for a ‘Verification Failure’ to be created.

If a ‘Verification Failure’ is present

  • manually verify the ‘Verification Failure,’ giving the reason. Follow the guidance for the appropriate verification failures.
  • in the ‘Summary Application’ (SM screen) select ‘OK’
  • go to .

If a ‘Verification Failure’ is not present, go to .

Step 21

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

If the claim is in payment

  • input the retained note in Household note II92. For how to do this use, TCM0160040 
  • take no further action.

If the claim is not in payment, contact your TALLO.

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’.

Step 22

If you are working a ‘Verification Failure,’ go to .

If you are working an ‘Incomplete,’ go to .

Step 23

  • in the ‘Application Notes’ screen Enter the message ‘customer(s) Crown Servants, case can be paid BAU’. For how to do this, useTCM1000021.
  • select ‘OK’
  • select ‘Process’
  • go to .

Step 24

If the message ‘The information captured indicates that the application may be ineligible. This application may be rejected’ appears 

  • select ‘Process’
  • make a note of the customers NINO and check to see if a ‘Verification Failure’ has been generated, and the MU it is located in
  • go to .

If the message ‘Application will be processed. Do you wish to proceed?’ appears

  • select ‘Process’
  • go to .

Step 25

Check to see if a ‘Verification Failure’ is present. For how to do this use, TCM1000020.

If a ‘Verification Failure’ is present

  • manually verify the ‘Verification Failure,’ giving the reason
  • in the ‘Summary Application’ (SM screen) select ‘OK’
  • go to .

If a ‘Verification Failure’ is not present, go to .

Note: Where you have processed an ‘Incomplete’ it may take twenty four hours for a ‘Verification Failure’ to be created.

Step 26

Check if the status of the claim is now ‘Award Issued’. For how to do this, use TCM1000018.

If the status of the claim is ‘Award Issued’

  • 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 won’t be set until you complete the ‘Amend Finish’ screen.

  • 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 step 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 .

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

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’.

Step 27

Note: When you have applied the ‘Free Format’, you’ll 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 TCM1000028.

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 hasn’t 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 28

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 hasn’t had a payment schedule set up, go to .

Step 29

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: Where necessary, do not refer the case 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 30

  • suspend the payments. For how to do this, use TCM1000232.

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

Note: The payments must be suspended for each customer.

  • access ‘View Linked Work Items.’ For how to do this, use TCM1000409. Make a note of the MUs where the Manual Corres and Suspend Payments worklists items are held
  • access the relevant MUs and delete the Manual Corres and Suspended Payments worklist items.
  • update the manual file with the action you have taken
  • go to .

Step 31

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 customer, go to .

If giro payments have been made to the customer

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

If BACS payments have been issued to the customer

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

Step 32

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 33

Using the information provided on the SED, manually calculate the CTC and WTC entitlement for the customer(s)

Note: Where the payments have already been made before the suspension could be applied, and these cannot be recalled, you must take these into account when calculating the customers award.

Note: CTC should be paid at the supplement rate. WTC should be paid in full. The Childcare element can be included if the Child Care provider is approved.

  • 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’ve calculated WTC entitlement for.

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

  • go to .

Step 34

When calculations have been checked and passed, create a manual award notice for the customer(s)

  • using the information on the form TC648 and ‘Manual Calculation Sheet’, complete a TC602 manual award notice for the WTC award.

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.

  • 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 from TCM0160040. For how to do this, use TCM1000001.
  • take no further action.