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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Extra information: glossary: C

Capacitor
Careers Service
Child
Childcare provider
Civil partnership
Complex case
Comprehensive Sickness Insurance
Connexions or Local Authority Support Services
Contra errors
Copy
Couple
Croatian National
Croatian National exempt from the Workers Authorisation Requirement
Cross-border / Family supplement cases
Crown servant

Capacitor

A capacitor is an individual or company that has authority to act and sign documents on a customer’s behalf, but not on behalf of the customer’s agent or accountant.

Typical capacitor roles include

  • Administrator
  • Executor
  • Personal representative
  • Power of Attorney
  • Receiver
  • Trustee.

Careers Service

A person is registered with the Careers Service if they’re

  • (in England and Wales) a person with whom the Secretary of State or the National Assembly of Wales has made an arrangement under the Employment Act, and a Local Education Authority to whom the Secretary of State or the National Assembly of Wales has given a direction under that Act
  • (in Scotland) a person with whom the Scottish Ministers have made arrangements under the Employment Act, and any education authority to which a direction has been given by the Scottish Ministers under that Act.

Child

For tax credits purposes, a person is a child up to the day before their sixteenth birthday, after that they become a young person..

Note: On the tax credits computer and in guidance, a young person may be referred to as a child.

Childcare provider

Consider the notes in approved and registered childcare providers

Civil partnership

A civil partnership is a relationship that has been registered under the Civil Partnership registration scheme, providing a legal status to the relationship between a same sex couple in the same way that marriage provides for an opposite sex couple.

Note: The Civil Partnership Act, which allows registration of civil partnerships, came into force on 5 December 2005.

Note: The Marriage (same sex couples) Act 2013 extended marriage to same sex couples.  See TCTM06100 for the definition of a couple.

Complex case

International Complex cases are

  • cross-border / Family supplement cases
  • migrant workers, including EEA, A2 and Croatian national customers where any of the household is living and/or working in the European Economic Area (EEA)
  • all Crown Servants posted overseas outside the UK
  • Nationals of states covered by international agreements - for example, ‘non-European Economic Area (EEA) - CTC only’ and ‘non-European Economic Area (EEA) - WTC only customers’
  • temporary and permanent absences for customers leaving the UK
  • EEA, including A2 and Croatian national customers where any of the household is living outside the UK and EEA

UK Complex cases are

  • polygamous and polyandrous marriages
  • more than 18 children in the household
  • claims where a customer is in prison (either on remand or serving a custodial sentence). For more information, use TCM0284440
  • tax credits customers receiving income-related Employment and Support Allowance (ESA) and working 16 hours or more weekly.

Complex cases don’t include

  • ‘no fixed abode’ cases
  • manual payments, except any International Team manual payments
  • right to reside in the United Kingdom decisions.

Comprehensive Sickness Insurance

Acceptable evidence of CSI

  • a full insurance policy document confirming that the applicant has private medical insurance
  • an original valid European Health Insurance Card (EHIC). The EHIC is the replacement for the E111 for persons temporarily resident within the United Kingdom
  • forms S1, S2 or S3
  • forms E109, E121 or E112. These forms preceded the S1 and S2 and are still in use by some countries.

Note: You must request sight of these documents, photocopies are not acceptable.

Connexions or Local Authority Support Services

This is an organisation which provides careers advice to people of any age

A young person, aged between 16 and 18, who is registered with Connexions or Local Authority Support Services when they cease full-time education continues to be treated as a qualifying young person for a further 20 weeks (or until their eighteenth birthday, if this is earlier).

This 20 week continuation will stop on the date when the young person

  • starts work of 24 or more hours weekly
  • re-enters full time non advanced education (CTC would continue/re-start in this circumstance)
  • takes up alternative unapproved training (unless agreed with DfES that CTC covers other training) see definition of what is classed as approved training in the Tax Credit Manual
  • claims benefit in their own right
  • reaches 18 years of age.

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Contra errors

Contra errors are caused by a discrepancy in payment postings between the tax credits computer and the Payments Made Framework (PMF). Some of these errors have been corrected by a system fix known as PXZZ.

Any net underpayments that have occurred as a result of this error have been paid to the customer. Overpayments of £300 or more have been notified to the affected customers.

These amounts are large enough to have been an obvious mistake on our part and will be recovered, unless the customer can show that it wasn’t reasonable for them to spot the mistake.

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Copy

A copy notice is an exact replica of the original including the original date of issue and appeal period and will display the word ‘COPY’ (like a watermark) across it.

A copy notice can be issued when

  • the original notice has been lost, misplaced, not received or damaged after receipt
  • a further copy is required, for example to supply to Housing Benefit
  • you consider a copy notice may be issued instead of a third duplicate notice.

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Couple

The term couple means

  • a man and a woman who are

    • married to each other

    or

    • living together as if married

or

  • two people of the same sex who are

    • in a civil partnership/married

    or

    • living together as if they are in a civil partnership.

Note: Where two people indicate they’re married or in a civil partnership, to be treated as a couple they mustn’t be separated under a court order or separated in circumstances that are to be permanent.

Note: The Marriage (same sex couples) Act 2013 extended marriage to same sex couples.  See TCTM06100 for the definition of a couple.

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Croatian National

A person who has Croatian Nationality

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Croatian National exempt from the Workers Authorisation Requirement

A Croatian national will not be subject to worker authorisation if:

  • they are self-employed
  • on 30 June 2013, they had leave to enter or remain in the United Kingdom under the Immigration Act 1971 that was not subject to any condition restricting their employment or they are given such leave after that date.
  • they were legally working in the United Kingdom on 30 June 2013 and had been legally working in the United Kingdom throughout the period of 12 months ending on that date and any intervening periods in which they were not legally working do not, in total exceed 30 days.
  • they were legally working in the United Kingdom for a period of 12 months falling partly or wholly after 30 June 2013 and any intervening periods in which they were not legally working do not, in total exceed 30 days
  • they are the spouse, civil partner, unmarried or same sex partner of a national of the United Kingdom - or of a person settled in the United Kingdom
  • they are the spouse, civil partner, unmarried or same sex partner of a person who is ordinarily resident in the UK without being subject under the immigration laws to any restriction on the period for which they may remain
  • they are the spouse, civil partner, unmarried or same sex partner or child under 18 of a person who has leave to enter or remain in the United Kingdom under the Immigration Act 1971 that allows that person to work in the United Kingdom
  • they have a permanent right of residence under regulation 15 of the EEA regulations
  • they are the family member of an EEA or Swiss national who has a right to reside in the United Kingdom
  • they are a highly skilled person and holds an EEA registration certificate that includes a statement that they have unconditional access to the United Kingdom labour market
  • they are providing services in the United Kingdom on behalf of an employer established in another EEA State (that is, they are a posted worker)
  • they are also a citizen (dual national) of the United Kingdom, Switzerland or another EEA State (other than Croatia).
  • they are also an A2 national who is subject to the Worker Authorisation Scheme (WAS) and they are in authorised employment under the WAS
  • they are exempt from immigration control by virtue of section 8(2) of the Immigration Act 1971 (for example consular officers and employees)
  • they have diplomatic immunity

A Croatian national is not an accession State national subject to worker authorisation during any period in which they are in the United Kingdom as a student and either:

  • they hold an EEA registration certificate that includes a statement that they are a student who may work in the United Kingdom whilst a student for no more than 20 hours a week unless:
  • they are following a course of vocational training and is working as part of that training; or
  • they are working during their vacation

or

  • they have leave to enter or remain under the Immigration Act 1971 as a student and is working in accordance with any conditions attached to that leave.

Additionally, a national of Croatia who ceases to be a student at the end of his course of study is not subject to worker authorisation during the period of four months, beginning with the date on which their course ends, provided that they hold an EEA registration certificate that was issued to them before the end of the course that includes a statement that they may work during that period.

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Cross-border / Family supplement cases

A cross-border / family supplement case is where the customer

  • isn’t working in the UK or isn’t living in the UK

and

  • is receiving family benefits or credits from another European Economic Area member state.

Where the UK’s family benefits (Child Benefit and Child Tax Credit) are higher than those paid by the EEA member state, tax credits will pay a supplement of CTC to the customer to make their award up to the UK level of payment.

Cross-border cases paid at the full rate

There were a limited number of cases where the customer had received the full rate of CTC and overlapping family benefits paid by an Other Member State (OMS) of the European Economic Area. They were paid the full amount of CTC in error. These overpayments are considered to be an official error and aren’t recoverable.

These cases can only be identified if the customer notifies you that they’re receiving family benefits from OMS, or if the OMS authorities provide information - for example, Department of Social, Community and Family Affairs in the Republic of Ireland.

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Crown servant

A crown servant is an officer of the United Kingdom government. A crown servant posted overseas is usually a member of HM Forces or a person employed by the Foreign and Commonwealth Office.