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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Stopping tax credits: change of circumstances: in year finalisation - family break up

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020 
  • you have 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 follow the guidance in TCM0346560 
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Background

This guidance must followed when a family break-up in the award review period is reported, in order to ensure the appropriate notifications are sent to the customers.

Note: If the customer has previously been part of a joint claim and is now a single customer or intends to make a single claim, personal information from up to the date of the end of the joint claim will be issued to both customers during the renewal period.

If the customer has indicated in the correspondence that this may put them at risk of domestic violence

  • set the manual correspondence marker, for how to do this follow the guidance in TCM1000063 
  • action the household breakdown, if applicable. For how to do this, follow the guidance in TCM0036100 
  • Set the retained domestic violence household note. For how to do this, follow the guidance in TCM0154040 

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.

Step 1

Check if the Annual declaration has already been marked as not served. For how to do this, use TCM1000574.

If the Award Declaration has already been marked as not served, return to the guidance you were previously following.

If the Award Declaration has not already been marked as not served, go to .

Step 2

Check the status of the Award Declaration. For how to do this, useTCM1000025.

If the award is finalised, go to .

If the status is not finalised, go to .

Step 3

Check the correspondence to establish if the household breakdown was in UY, UY-1 or UY-2.

If the Household breakdown was in UY-1, UY-2 or earlier

  • follow the guidance in TCM0042240 
  • take no further action.

If the Household breakdown was in UY, go to .

Step 4

End the entitlement of the family

Note: If contact with the customer is necessary as part of ending the family, you should tell the customer that a signed Award Declaration must be completed by their IYSD.

then

  • return to this guidance.

If the status was not issued, not returned or finalised, go to .

Note: The tax credits computer will automatically ‘mark as not served’ on a joint claim when the IYS17 has been issued but not returned and a HHBD date has been applied and UY is not renewals terminated and we are before IY1SD.

If the status was ‘Returned’, ‘IYS17 Logged’, ‘Partial Capture’ or ‘Duplicate’, go to .

Step 5

Disregard the Award Declaration. For how to do this, use TCM1000580 

  • go to .

Step 6

Mark the Annual Declaration as not served. For how to do this, use TCM1000575 

Note: In a joint claim, you must mark both customers as ‘not served’.

  • update Household Notes with the message TI10 from TCM0174020. For how to do this, use TCM1000001 
  • go to .

Step 7

Send correspondence to storage. Follow the guidance in TCM0074140 

  • take no further action.