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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

International pre-award claims - qualifying benefits

Reasons not to follow this guidance

You do not need to follow this guidance if

  • both customers live in the UK
  • the customer is not in receipt of one of the following qualifying benefits

    • incapacity benefit
    • state pension
    • widow’s benefit
    • bereavement benefit
    • industrial injuries disablement benefit with constant attendance or mobility supplement
    • contributions based Employment and Support Allowance
    • severe disablement allowance

Checklist

Before you follow this guidance make sure

  • you will need the correct user roles to follow this guidance. 
  • you are in the correct MU, follow TCM0322460 for the correct MU number.

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 for advice.

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

Check the IGDB, case notes and / or household notes to identify if a B&C International 1 form has been issued to the customer.

If a B&C Int 1 form has been issued to the customer, go to

If a B&C Int 1 form has not been issued to the customer

  • issue the form
  • set a clerical bf date for 30 days in the future
  • no further action

If you are dealing with expired bf for a B&C Int 1 form

  • disallow the claim
  • update Application Notes with appropriate standardised message
  • follow the guidance in TCM0070100
  • issue form TC1102 to the customer
  • no further action

If you are dealing with a returned SED, go to

If you are dealing with expired bf for a SED, go to

Step 2

Check the manual file, case notes database and / or household notes to identify if the customer has returned the B&C Int 1 form.

If the customer has returned the form, go to

If the customer has not returned the form and the form has been issued by Child Benefit.

  • bf until the Child Benefit bf has expired
  • no further action

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

Step 3

Check whether there is employment in the OMS.

If there is employment in the OMS, go to

If there is no employment in the OMS, go to

Step 4

Check the Child Benefit IGDB to determine if the appropriate E400 series forms or SEDs have been issued for all the children and young persons on the tax credits claim to the OMS or returned by the OMS. For how to do this, follow TCM1000408 andTCM1000334.

If Child Benefit have not issued the SED to the OMS

  • complete the appropriate E400 series forms or SED, for how to do this follow TCM1000114
  • send the appropriate E400 series forms or SEDs to the OMS where the children and young persons live. Follow the guidance in TCM0287220. For how to do this, follow TCM1000334
  • update the IGDB with details of the E400 series forms or SEDs you have issued to the OMS. For how to do this, follow TCM1000408.
  • set a bf date on the manual file and an action date on each linked work list item for Polish OMS - 3 months, any other OMS - 2 months. For how to do this, follow TCM1000008.
  • update application notes with the message II84 from TCM0160040. For how to do this, follow TCM1000028.
  • update the manual file with the action you have taken, print off two copies of the completed SED

Step 5

Check whether the customer is in receipt of one of the qualifying benefits.

If the customer is in receipt of one of the qualifying benefits, go to

If the customer is not in receipt of one of the qualifying benefits, go to

Step 6

On the ‘Manage Verification Failures’ screen

  • select the relevant verification failure
  • select ‘Change Verification’. You’ll be taken to ‘Change of Status Reason’ screen.
  • update the ‘Reason’ field with the message II44 from TCM0160040
  • select ‘OK’. You’ll be taken back to the ‘Manage Verification Failures’ screen
  • select ‘OK’
  • when the message ‘This will re-submit the application for processing and saving changes made on this window. Do you want to proceed?’ displays, select ‘Yes’.
  • send any case papers to storage, for how to do this follow TCM0074140
  • no further action

Step 7

Disallow the claim, for how to do this follow the guidance in TCM1000411

  • Update application notes with the message II90 from TCM0160040. For how to do this, follow TCM1000028.
  • no further action

Step 8

If the OMS have returned the SED

  • check the information to see whether a claim has been made, go to

If the OMS have not returned the SED and a duplicate has not been issued

  • issue a duplicate SED to the OMS
  • bf for three months for Polish OMS, two months for any other OMS

If the OMS have not returned the duplicate SED

  • issue TC1097
  • disallow the claim, for how to do this follow the guidance in TCM1000411
  • Update application notes with the message II91 from TCM0160040. For how to do this, use TCM1000028.
  • send any case papers to storage, for how to do this follow TCM0074140
  • no further action

Step 9

If a claim has been made

On the ‘Manage Verification Failures’ screen

  • select the relevant verification failure
  • select ‘Change Verification’. you will be taken to ‘ Change of Status Reason’ screen
  • go to

Step 10

If you are changing the verification status of a rule 2 verification failure

  • update the ‘Reason’ field with the message II46 from TCM0160040
  • select ‘ok’, you will be taken back to the ‘Manage Verification Failures’ screen

Note: There may be more than one rule 2 verification failure. Before continuing you will need to repeat the action you have taken so far in this step for each rule 2 verification failure.

  • select ‘ok’
  • when the message ‘this will re-submit the application for processing and saving changes made on this window, do you want to proceed’ displays, select ‘yes’
  • verification failure
  • go to

If you are changing the verification status of a rule 12 verification failure

  • update the ‘Reason’ field with the message 1146 from TCM0160040
  • select ‘ok’, you will be taken back to the ‘Manage Verification Failures’ screen
  • select ‘ok’
  • when the message ‘this will re-submit the application for processing and saving changes made on this window, do you want to proceed’ displays, select ‘yes’
  • go to

If no claim has been made, refer to TALLO for guidance.

Step 11

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

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

If the status of the claim is not ‘Award Issued’ and there is a rule 2 verification failure, go back to

If the status of the claim is not ‘Award Issued’ and there is no rule 2 verification failure

  • before you continue follow the guidance in TCM0138020

Then if you can continue, process the verification failure by following the guidance in TCM0076000, TCM0078000 or TCM0080000

Note: When setting a reminder cycle you must ensure that the customer is given a minimum of 30 days to respond to your enquiries

  • go to

Step 12

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 follow 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.

Step 13

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

If either customer has provided details of a bank account, go to

If neither customer has provided details of a bank account

  • update the household notes with the message II53 from TCM0160040, for how to do this follow TCM1000001
  • go to

Step 14

You must complete this step and 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 follow TCM1000136
  • complete the ‘Amend Finish’ screen, for how to do this follow TCM1000032

Note: The ‘Complex Case’ and ‘Manual Correspondence’ markers will not be set until you complete the ‘Amend Finish’ screen

  • go to

Step 15

Select the case you are working from the ‘Unprocessed Changes of Circs’ worklist with ‘COC’ in the ‘Change Details’ column, for how to do this follow TCM1000208

  • go to

Step 16

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 lost item with a reason other than ‘COC’. Contact your TALLO for further advice.

Apply the ‘Free Format’, for how to do this follow TCM1000233

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

Step 17

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 follow 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 follow TCM1000160
  • go to

Step 18

Check if an award version has been created which has a payment schedule, for how to do this follow 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 follow TCM1000312
  • go to

If an award version has been created that has no payment schedule set up, go to

Step 19

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.

Where necessary do not refer the case to your TALLO without first allowing 48 hours for the payment to be set up.

Apply the workaround to prompt a payment schedule, for how to do this follow TCM1000372

  • complete the ‘Amend Finish’ screen, for how to do this follow TCM1000032

Note: A payment schedule will not be prompted until you complete the ‘Amend Finish’ screen.

If a payment schedule has been set up after applying the workaround

  • make a note if any payments have been made, for how to do this follow TCM1000312
  • go to

If a payment schedule has not been set up after applying the workaround, 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 20

  • suspend the payments, for how to do this follow TCM1000232

This will create a ‘Suspended Payments (Payments)’ worklist item, the payments must be suspended for each customer.

  • transfer the ‘Suspended Payments (Payments)’ work list item to your MU, for how to do this follow TCM1000023
  • set an action date of 180 days in the future on the ‘Suspended Payments (Payments)’ work list item, for how to do this follow TCM1000008
  • update the manual file with the action you have taken
  • update household notes with the message II10 from TCM0160040, for how to do this follow TCM1000001
  • go to

Step 21

Check if any payments have been made to the customer, for how to do this follow 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 follow TCM1000134
  • go to

Step 22

If the BACS payments could not be recalled

  • make a note of the net amount paid on the form TC648, for how to do this follow TCM1000312
  • go to

If the BACS payments could be recalled, go to

Step 23

Calculate the customers supplement payment using the family benefit rates and information provided by the OMS

Follow the guidance in ‘How to calculate a supplement for EEA customers with abroad involvement.

Note: Until this guidance is published, refer to your TALLO for advice

Note: If the period from the start date of the claim to today’s date has passed 5 April, then you will need a separate SEES calculation for each year, for how to do this follow TCM1000089.

  • update household notes with the message II18 from TCM0160040, for how to do this follow TCM1000001
  • go to

Step 24

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

  • go to

Step 25

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

Step 26

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 follow TCM1000310

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 II47 from TCM0160040. Make sure you select the ‘Retained’ checkbox, for how to do this follow TCM1000001.
  • send the appropriate payment details forms to the Manual Payments Team
  • pass the files to Renewals Team
  • no further action