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HMRC internal manual

Tax Credits Manual

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

This means any work that the customer does for, or in expectation of, payment.

Paid work means

  • work for an employer in return for wages, salary or some other measurable reward. The payment may be made in payment or in kind
  • (if the person is a self-employed earner) work carried out for reward or profit (other than as an employed earner).

Payment discrepancy

Payment discrepancies can occur for a customer or an employer and will be for one of the following reasons

  • there’s an accounting event recorded on the Payments Made Framework (PMF) that hasn’t a matching posting on the tax credits computer
  • there’s a posting on the tax credits computer without a matching event on PMF
  • there’s a matching accounting event recorded on both PMF and the tax credits computer but the amount recorded differs on each system.

Permanent right of residence in the UK

The following have the right to reside in the United Kingdom (UK) permanently

  • an EEA national or Swiss national who has resided in the UK and has had a right to reside here for a continuous period of five years
  • a family member of an EEA national or Swiss national who are not an EEA national or Swiss national themselves but who has resided in the UK with the EEA national or Swiss national and that person has a right to reside here for a continuous period of five years
  • an EEA national worker or self-employed person who has ceased activity

Note: A person satisfies this condition if they cease to work (employed or self-employed) in the UK and if they have either

  • reached pension age on the date that they cease to work in the UK or have ceased work (as a worker) to take early retirement. In addition to the above they must have pursued their activity as a worker or self-employed person for at least 12 months prior to ceasing work and have lived continuously in the UK for at least 3 years
  • stopped working in the UK as a result of permanent incapacity for work and they either resided in the UK continuously for two years or more or the incapacity was the result of an accident at work or an occupational disease that entitles them to a pension payable in full or in part by a UK institution

Note: If the person states they are a worker or self-employed person who has ceased employment and do not fulfil the criteria above, you must contact your Technical Advice Line Liaison Officer (TALLO) for advice.

  • the family member of a worker or self-employed person where
    • the worker or self-employed person has died
    • the family member resided with them immediately before their death
      • and
    • the worker or self-employed person had resided continuously in the UK for at least the two years immediately before their death or the death was the result of an accident at work or an occupational disease
  • a person who
    • has resided in the UK and has had a right to reside for a continuous period of five years
      • and
    • was, at the end of that period a family member who has retained the right of residence.

Note: Once acquired, the right of permanent residence shall be lost only through absence from the UK for a period exceeding two consecutive years.

Personal Acting Body

A personal acting body is a person who can act on the behalf of another. These are

  • Agent - this is a person, usually an accountant, who deals with all the tax affairs of a client with the client’s written authorisation. For tax credits purposes, an authorised agent can act on a customers behalf but can’t receive payments for them
  • Appointee - this is a person appointed by the Secretary of State or the Board of HM Revenue and Customs. They are appointed to take full responsibility of the person’s affairs in relation to benefit and tax credits which includes payment
  • Executor - this is a person appointed in a will who deals with the affairs of a person after their death
  • Intermediary/Representative - like an agent, but authorised by the customer for a specified short term period (usually 12 months) or for a specific tax credits matter
  • Power of Attorney - this is a legal document allowing one person or more to act on behalf of another
  • Court Approved - this is a person who has been granted authority to act on behalf of a person by a court. The following are court appointments and override appointments made by the Board of HM Revenue and Customs or the Secretary of State
    • Tutor - appointed by a court in Scotland
    • Guardian - appointed by a court in Scotland
    • Curator Bonis - appointed by a court in Scotland
    • Controller - appointed by the Office of Care and Protection in Northern Ireland
    • Receiver - appointed by the Court of Protection in England and Wales.

Polyandrous marriage / Polygamous marriage

Polyandrous marriage

A polyandrous marriage is when the customer has more than one husband. The marriage has been conducted outside of the UK, in a country that recognises this type of marriage.

Polygamous marriage

A polygamous marriage is when the customer has more than one wife. The marriage has been conducted outside of the UK, in a country which recognises this type of marriage.

Posted worker

A worker is ‘a posted worker’ when he is employed in one EU Member State but sent by his employer on a temporary basis to carry out his work in another Member State. For example, a service provider may win a contract in another country and send his employees there to carry out the contract.

A person’s status as a posted worker is demonstrated by the issue of an A1 certificate; this certifies that the holder is subject to the legislation of the issuing state..

Potential match

A potential match is an individual whose details potentially match the customer’s details but the match has been prevented, as one or more of a series of ‘matching rules’ hasn’t been satisfied.

Power of attorney

A power of attorney (POA) is a legal document giving one person or more (the donee or donees) the power to act on behalf of another in a variety of legal matters.

The document authorises (the donee or donees) to sign papers on the donor’s behalf, or to make legal decisions for them.

Previously employed people with children in formal education in the UK

The child of an EEA national, who is or has been in employer employment in the United Kingdom (UK), has a right to reside in the UK for the duration of their education.

The education must be formal education, that is it must be compulsory schooling, or for post school aged children sixth form college or similar.

Pre school provisions, such as a nursery or childcare will not create a right to reside in the UK, even if that provision provides an educational element.

The child’s main carer will also acquire a right to reside in the UK for the duration of the child’s formal education, in order for the child to be able to exercise their right to education. Neither the child nor the main carer need to be self-sufficient in the UK.

For a child to have a right to reside in the UK, one of the child’s parents must be an EEA national who was present in the UK when the child entered formal non advanced education and had been legally working in the UK as a worker before or during part of the child’s time in formal non advanced education. However, neither the child nor the main carer needs to be an EEA national.

For example, in the European Court of Justice (ECJ) case of Ibrahim, only one of the child’s parents was an EEA national. At the time the child entered education, the parent who was an EEA national was in the UK and had previously been employed. The court held that the child had a right to complete their education in the UK, and so the child’s main carer had a right to reside in the UK to allow the child to complete their education. It did not matter that the child’s main carer was not an EEA national.

Provisional award

This is where the award consists of provisional payments. These are paid during the renewals process.

A customer’s provisional payments will continue until their claim is renewed. Their payments will then change to the correct amount.

Provisional payments can only be paid until the award is renewed. They will be stopped on the 1st Specified Date if the claim hasn’t been renewed.