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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Stopping tax credits: in year finalisation (A-K): household breakdown before UC start - UY finalised on or after IYSD

Checklist

Before you follow this guidance, make sure you

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

Background

This process is for joint claims that are undergoing In Year Finalisation where a household breakdown has been reported which is before the UC start date. In addition the IYS17 Notice has been issued, UY has been finalised and today’s date is after IYSD

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

If you are working a new item, check whether UY has been finalised. For how to do this, use TCM1000594.

If UY has been finalised, go to .

If UY is unfinalised, follow guidance TCM0346360.

If you are working a BF, go to .

Step 2

Check if today’s date is before or after IYSD. For how to do this, use TCM1000590 

If today’s date is on or before IYSD

  • follow guidance TCM0346320 
  • take no further action

If IYSD has passed, go to .

Step 3

Check when the change of circumstances was reported.

If the change of circumstances was reported on or before IYSD, follow guidance TCM0042260.

If the change of circumstances was reported after IYSD, go to .

Step 4

Enter household breakdown date. For how to do this, use TCM1000222 

  • go to .

Step 5

Check whether the change of circumstances was reported by telephone or by written correspondence.

If the change was reported by telephone, go to .

If the change was reported by written correspondence, go to .

Step 6

Contact the customer who has reported the change of circumstances by telephone. For how to do this follow TCM0094080 

If you are able to contact the customer

  • inform the customer that a Section 19 Enquiry will be opened
  • obtain actual income for the new income assessment period
  • confirm address details
  • go to .

Note: We are unable to amend any details for the second customer which has been supplied from the customer reporting the change in household breakdown cases. Any changes for the second customer need to be obtained from that individual or their appointee. This includes address updates and income details.

If you are unable to contact the customer, go to .

Step 7

Check to see if the tax credit system holds the correct address details for both customers by comparing any new address supplied by the customer with the address held on the tax credit system. If the customer has not supplied a new address then you can accept that the address on our system is correct.

If the tax credit system holds the correct address details and the first customer has confirmed their income details, go to  

If the tax credit system holds the correct address details but the first customer has been unable to confirmed their income details, go to  

If the tax credit system does not hold the correct address details and the first customer has confirmed their income details

  • mark the second customer RLS. For how to do this, use TCM1000031 
  • go to  

If the tax credit system does not hold the correct address details and the first customer has been unable to confirmed their income details

  • mark the second customer RLS. For how to do this, use TCM1000031 
  • go to .

Step 8

Issue Section 19 Enquiry letters to both customers requesting actual income details for the new income assessment period

  • BF the case for 30 days
  • take no further action.

Step 9

If a reply to the Section 19 Enquiry letter is received from both customers, go to .

If a reply to the Section 19 Enquiry letters is received from one customer only, go to .

If no replies are received to the Section 19 Enquiry letters, go to .

Step 10

Update the tax credit system with new actual income amounts for the new income assessment period. For how to do this, use TCM1000605 

  • refinalise UY. For how to do this, use TCM1000573 
  • update household notes
  • take no further action.

Step 11

If you have been unable to obtain the actual income figures for the new assessment period for one customer, or NTC holds incorrect address details

  • obtain PY income for the customer who has not replied to the Section 19 Enquiry letter
  • take the customers PY income figure and divide it by the number of days in the tax year (this will give you the daily rate) - multiple the daily rate figure by the number of days in the new income assessment period. The resulting figure will be used for that customers UY income
  • update NTC with new calculated figure. For how to do this, use TCM1000605 
  • update NTC with the income figure supplied by the customer who has replied to the Section 19 Enquiry letter
  • refinalise UY. For how to do this, use TCM1000573 
  • update household notes
  • take no further action.

Step 12

The following manual calculation will need to be performed for both customers

  • take the customers PY income figure and divide it by the number of days in the tax year (this will give you the daily rate) - multiple the daily rate figure by the number of days in the new income assessment period. The resulting figure will be used for that customers UY income
  • update the tax credit system with new calculated figure. For how to do this, use TCM1000605 
  • refinalise UY. For how to do this, use TCM1000573 
  • update household notes
  • take no further action.