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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
Updated
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Stopping Tax Credits - Award Declaration (capture) - reply required and automatic finalisation

Information

There is a requirement to finalise an award in the year in which it ceases where a claim has been made to Universal Credit (UC) and UC notification of that claim has been received in HMRC.

Determine In Year S17 notice type

The following cases will always be sent an In Year Reply Required S17 notice: 

  • Joint claims where one claimant is RLS
  • There is a current appointee who is RLS (And at least one claimant in the household is not RLS)
  • Any claimant in the household is deceased
  • In a case where a withheld underpayment exists in UY due to a reduction of income

The following cases will be sent an In Year Auto S17 notice: 

  • The UY award has been tapered to nil or below the de-minimus limit NTC MINIMUM ANNUAL TAX CREDIT AMOUNT £[XX]
  • The household has been in receipt of qualifying benefit (IS/JSA (IB) or ESA (IR) or MIG/PC) for the whole of the UY award period and there was no WTC entitlement during the UY award period.

All remaining cases will be sent an In Year Auto S17 notice unless excluded by one of the rules below

  • The household has been in receipt of qualifying benefit for the whole of the UY award period and there was WTC entitlement during the UY award period.
  • Where either claimant in the household

    • currently has a Self-Assessment UTR recorded on NTC or
    • has a Self-employed start date on NTC equal to or earlier than the last day of the Income Assessment Period and there is no Self-employed end date earlier than 6 April UY for that period of self-employment for that claimant.
  • There are UY Benefits in Kind (NTC or RTI) for either claimant in the household.
  • There is a non-net pension contributions pay arrangement (NNPP) indicator present in UY for either claimant in the household.
  • There is a Statutory Payments indicator present in UY for either claimant in the household.
  • There is any source of UY income for the household other than RTI
  • There is no source of UY income for the household.

All cases excluded from being an IY Auto case under the above rules will be considered an In Year Reply Required Case.

No In Year S17 notice type will be determined or issued where a single claimant or both claimants in a joint household are RLS and there is no current appointee or if there is an appointee that is also RLS.