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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Stopping tax credits: in year finalisation (A-K): household breakdown before UC start date - UY finalised before 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 (IYF) where a household breakdown has been reported which is before the UC start date. The IYS17 Notice has been issued and UY has been finalised. Today’s date is on or before 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

Check to see whether UY has been finalised. To do this, use TCM1000594

If UY is unfinalised - follow guidance TCM0346360

If UY has been finalised - go to .

Step 2

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

If today’s date is on or before IYSD - go to

If IYSD has passed - follow guidance TCM0346280

Step 3

Update NTC with household breakdown date. For how to do this, use TCM1000222

Note: If the message ‘UC start date present CoC’s have been processed and calculation will be postponed’ appears, click ‘OK’.

  • go to .

Step 4

If you are dealing with the customer on the telephone

  • confirm their actual income details for the new income assessment period
  • confirm address details
  • go to

Note: The reported household breakdown date is before the UC start date changes the assessment period for UY. We need to confirm with the customer what their actual income is for the new income assessment period.

If you are dealing with written correspondence from the customer

  • attempt to contact the customer by telephone. For how to do this, use TCM0094080

If you are able to contact the customer by telephone

  • confirm actual income for the new income assessment period
  • go to

Note: The reported household breakdown date is before the UC start date changes the assessment period for UY. We need to confirm with the customer what their actual income is for the new income assessment period.

If you are unable to contact the customer by telephone

  • go to

Note: We are unable to amend any details for the second customer which has been supplied by 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.

Step 5

Check to see whether NTC holds the correct address details for second customers. For how to do this, use TCM1000111.

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

If NTC holds the correct address details but the first customer has been unable to confirm their income details or you have been unable to contact them, go to

If NTC 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 .

Step 6

Set inhibit finalisation. For how to do this, use TCM1000578

  • issue manual letter to second customer asking them to confirm their actual income for the new income assessment period
  • b/f 30 days
  • make a note of first customers income figure for the new income assessment period
  • make a note that once the b/f date has expired, you will need to return to this guidance at
  • no further action.

Step 7

Set inhibit finalisation.

  • issue manual letter to both customers asking them to confirm their actual income for the new income assessment period
  • b/f the case for 30 days
  • make a note that once the b/f date has expired, you will need to return to this guidance at
  • no further action.

Step 8

If both customers have replied confirming their actual income for the new income assessment period

  • enter actual income figures on the tax credits system. For how to do this, use TCM1000605
  • lift inhibit marker. For how to do this, use TCM1000578
  • finalise UY. For how to do this, use TCM1000573
  • no further action.

If one customer only has replied and confirmed their actual income for the new income assessment period

  • enter actual income figure on the tax credits system for the customer who has replied
  • apply the following manual calculation for the customer who has not replied
  • determine the UY income for the customer who has not replied. For how to do this, use TCM1000597
  • enter the figure you have calculated on the tax credits system
  • lift inhibit marker
  • finalise UY
  • no further action.

Step 9

If one customer has been marked RLS and one customer has confirmed their actual income for the new income assessment period

  • enter the actual income figure on the tax credits system confirmed by the customer
  • apply the following manual calculation for the customer marked RLS
  • determine the UY income for the customer marked RLS. For how to do this, use TCM1000597
  • enter the figure you have calculated on the tax credits system
  • finalise UY
  • no further action.