This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Tax Credits Manual

Stopping Tax Credits: In Year Finalisation: inhibit signal - manually set and unset (Info)

Set signal

The Inhibit Finalisation signal can be set against any tax credit period that is not already finalised using actual income. For how to do this follow TCM1000578. It can be set against more than one year.

The Inhibit Finalisation signal can be set, unset and set again for the same year.

Manually setting the Inhibit Finalisation signal will stop the relevant tax credit period from being automatically finalised.

To inhibit finalisation the operator needs to navigate to the ‘Finalisation Details’ screen in function ‘Maintain IY Finalisation’.

Note: If the operator sets the inhibit finalisation signal then the Inhibition Expiry Date will be automatically set to today’s date plus 30 days. It is possible for the operator to manually extend the Inhibition Expiry Date.

The reason for setting the Inhibit finalisation signal (and who performed it) must be recorded in Function ‘MAINTAIN IY FINALISATION’. Notes about the inhibitor can be recorded on this screen. However, any notes that need to be available to other operators who do not have access to this Function (for example, Contact Centres) must also be recorded in Function ‘MAINTAIN HOUSEHOLD NOTES’.

Note: You must follow the guidance in TCM0152060 when you record the note.

Note: The Inhibit finalisation signal can be set when Compliance or Appeals and other signals are already set.

Unset signal

The Inhibit Finalisation signal can only be removed manually in Function ‘MAINTAIN IY FINALISATION’.

Authority to remove the signal must be obtained from the specialist area that set the signal.

When the Inhibit Finalisation signal is removed, finalisation is not automatically initiated. Further processing will have to be done to prompt finalisation.