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HMRC internal manual

Tax Credits Manual

Specialist areas: international: pre-award: international - pre-award claims - EEA nationals with no abroad involvement

Reasons not to follow this guidance

You do not need to follow this guidance where

  • you are dealing with a case that is ‘Award Issued’
  • the claim has some form of abroad involvement
  • at least one customer is not an EEA national.

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0306100 
  • you will the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Required information

Obtain the nationality of all customers on the claim using information held on NIRS

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: From 6 April 2017, customers will only get the Family Element of Child Tax Credit where they are responsible for a child or children born before that date.

Note: The individual child element of Child Tax Credit will no longer be awarded for third and subsequent children or qualifying young persons in a household, born on or after 6 April 2017, unless it meets the exception criteria.

Note: If the change relates to a child/young person who is an exception or potential exception contact the Exception Team (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)

Step 1

If you are working a verification failure or any other circumstances apply, go to Step 2.

If you are dealing with an application from a Slovakian national, go to Step 4.

If you are working an incomplete, go to Step 8.

If you are dealing with a reply to enquiries, an expired action date or clerical BF date where you have made enquiries with a customer including Slovakian nationals, go to Step 5.

If you are dealing with an expired action date or clerical BF date where you are awaiting a claim going into award, go to Step 18.

If you are dealing with a reply from the Slovakian authorities or the Slovakian authorities have not replied, go to Step 23.

Step 2

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

If there are no children on the claim, go to Step 3.

If there are any children on the claim, go to Step 16.

Step 3

Check whether the customer is Ordinarily Resident due to them being in registered or authorised employment and whether you have enough information for you to conduct the Right To Reside (RTR) test for EEA nationals. Follow the guidance in TCM0307300.

If you have all the information you need to conduct the RTR test, go to Step 6.

If you do not have all the information you need to conduct the RTR test

  • phone the customer to obtain the information you need. For how to do this, use TCM0094080
  • go to Step 4.

Step 4

If you obtain all the missing information from the customer, go to Step 6.

If you do not obtain all the missing information from the customer

  • send a B&C Int1 to the customer
  • send a B&C Int2 to the Slovakian authorities, where appropriate.
  • 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. For how to do this, use TCM1000023
  • update Application Notes with message IA01 and IA02 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 have worked on form TC648
  • take no further action.
    Note: When dealing with an application from a Slovakian national, note the B&C Int1 with team details and BF for 5 weeks.
    Note: The Slovakian authorities will not reply to every B&C Int2. They will only inform the Department when their enquiries show that the Slovakian national, or the family, are residing in Slovakia.

Step 5

If you have received all the information you need or a reply from a Slovakian national and bank details are held, go to Step 6.

If you have received information you need but still require bank details

  • delete the zeros from the payment screen, if populated
  • set the payment frequency to four weekly
  • go to Step 6.

If you have not received all the information you need or a reply to your enquiries from a Slovakian national

  • reject the claim. For how to do this, use TCM0070100 
  • update Application Notes with appropriate IA message from TCM0160040. For how to do this, use TCM1000028
  • take no further action.
    Note: In Slovakian cases complete the referral spread sheet and send to CBO.

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

Step 6

Using the information you have, check if the customer is Ordinarily Resident by passing the RTR test. Use the Rules Based Service - International RTR test. For how to do this, use TCM1000035.

If the customer had RTR at the effective date of claim, go to Step 7.

If the customer did not have RTR at the effective date of claim

  • reject the claim. For how to do this, use TCM0070100
  • update Application Notes with appropriate IA message from TCM0160040. For how to do this, use TCM1000028
  • issue a TC1102 to the customer
  • take no further action.

Step 7

Consider if the customer has a continuous RTR from the effective date of the WTC claim.

If the customer has RTR continuously from the effective date of claim

  • input note in ‘Summary’ screen ‘Applicant(s) are ordinarily resident from date of claim as (then reason)’
  • go to Step 8.

If the customer does not have RTR continuously from the effective date of WTC claim

  • make a note on TC648 of the effective date of WTC claim and the dates the customer is ordinarily resident from
  • input note in ‘Summary’ screen ‘Applicant(s) are ordinarily resident (date of RTR) as (then reason)’
    Note: Where there is more than one period of no right to reside, you must note all dates where customer has, and does not have, the RTR from the effective date of claim up until the day you are working the case.
  • contact your Technical Advice Line Officer (TALLO) for further advice.

Step 8

On the ‘Summary’ screen, check whether there are entries in the ‘Repair Summary’ box.

If there are entries in the repair box 

  • phone the customer to obtain the information you need. For how to do this, use TCM0094080 
  • go to Step 10.

If there are entries in the repair box for missing bank 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 9.

If there are no entries in the repair box, go back to Step 2.

Step 9

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

  • update NTC with the bank details
  • issue a TC2037 to the customer
  • update Application notes with message LI60 from TCM0162060. For how to do this, use TCM1000028
  • go to Step 11.

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

  • phone the customer to obtain the information you need. For how to do this, use TCM0094080 
    Note: You must attempt to obtain bank details before you can process the claim.
  • go to Step 10.

Step 10

If you obtain all of the missing information from the customer, go to Step 11.

If you do not obtain all the missing information from the customer

  • issue B&C 1 / TC664 to the customer for the missing information
  • update Application Notes with appropriate IA message from TCM0160040. For how to do this, use TCM1000028
  • transfer case to MU 29846. For how to do this, use TCM1000023 
  • BF the case for 30 days
  • take no further action.

Step 11

On the ‘Summary’ screen

  • select ‘OK’
    Note: The message ‘The information captured indicates that the application may be ineligible. This application may be rejected’ or ‘Application will be processed. Do you wish to proceed?’ may be displayed.
  • select ‘Process’
  • go to Step 12.

Step 12

Check what Verification Failures are present on the claim. For 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 there are no verification failures

  • BF the case for 3 days
  • take no further action.

If there is a Rule 12 verification failure, go to Step 13.

If there is any other verification failure present, go to Step 15.

Step 13

If the Rule 12 verification failure has been caused by the customer stating they are not a UK national, go to Step 14.

If the Rule 12 verification failure has been caused by another reason, contact your TALLO for further advice.

Step 14

If the customer who has the Rule 12 verification failure is an EEA national, A2 national or a Croatian national, manually verify the Rule 12 Verification Failure

  • change the tick in either the ‘UK National’ field to correct the customer’s details
  • access ‘Manage Verification Failures’ screen
  • select ‘Change Verification’
  • in the ‘Reason’ field, enter the message ‘R12 manually verified, Applicant is (country) national’
  • select ‘OK’
  • select ‘OK’
  • update the manual file with the action you will taken
  • BF the case for 3 days
  • take no further action.

If the customer who has the Rule 12 verification failure is not an EEA national, A2 national or a Croatian national, contact your TALLO for further advice.

Step 15

Consider what verification failures are present on the claim.

If there is only a Rule 1 verification failure

  • update Application Notes with the appropriate IA message  from TCM0160040. For how to do this, use TCM1000028
  • transfer the worklist item to the relevant MU from TCM0322460. For how to do this, use TCM1000023
  • BF the case for 30 days
  • take no further action.

If there is only a Rule 2 verification failure

  • update Application Notes with the appropriate IA message  from TCM0160040. For how to do this, use TCM1000028
  • transfer the worklist item to the relevant MU from TCM0322460. For how to do this, use TCM1000023
  • BF the case for 30 days
  • take no further action.

If there are any other verification failures

  • follow the appropriate guidance for those verification failures
  • BF the case for 30 days
  • take no further action.

Step 16

Check if you have enough information for you to conduct the RTR test for EEA nationals. For how to do this, use TCM0307300.

If you have all the information you need to conduct the RTR test, go back to Step 6.

If you do not have all the information you need to conduct the RTR test 

  • make a note on form TC648 of any information needed
  • go to Step 17.

Step 17

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

If you obtain all the missing information from the customer, go back to Step 6.

If you do not obtain all the missing information from the customer

  • send a TC841 to the customer
  • 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. For how to do this, use TCM1000023
  • update Application Notes with the appropriate IA message  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.

Step 18

If you are dealing with a WTC only claim that did not have any outstanding verification failures, go to Step 19.

If you are dealing with a WTC only claim that had outstanding verification failures, go to Step 22.

If you are dealing with a claim for both WTC and CTC that did not have any outstanding verification failures, go to Step 19.

If you are dealing with a claim for both WTC and CTC that had outstanding verification failures, go to Step 19.

Step 19

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

If the claim is ‘Award Issued’, go to Step 20.

If the claim is not ‘Award Issued’, go to Step 21.

Step 20

If the claim is WTC only

  • update Application Notes with the appropriate IA message  from TCM0160040. For how to do this, use TCM1000028
  • issue a TC843 to the customer
  • send the documents to storage. For how to do this, use TCM0074140
  • take no further action.

If the claim is for WTC and CTC

  • update Application Notes with the appropriate IA message  from TCM0160040. For how to do this, use TCM1000028 
  • issue a TC843 to the customer
  • send the documents to storage. For how to do this, use TCM0074140
  • take no further action.
    Note: Where the person who has RTR is the partner of a UK national, you do not need to issue a TC843.

Step 21

If the claim has not been BF’d at least twice and was BF’d for three days, go back to Step 12.

If the claim has not been BF’d at least twice and was BF’d for four weeks, go back to Step 17.

If the claim has been BF’d twice or more, contact your TALLO for further advice

Step 22

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

If the claim is ‘Award Issued’, go back to Step 20.

If the claim is not ‘Award Issued’, go back to Step 21.

If the claim has been rejected, take no further action.

Step 23

Check the information shown on the B&C Int2.

If the B&C Int2 confirms the information that we hold

  • go back to Step 2 
  • complete the referral spreadsheet and send to CBO
  • take no further action.

If the B&C Int2 does not confirm the information that we hold. Follow the guidance in TCM0304130.