Beta 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 (A-K) - initial action

Checklist

Before you follow this guidance, make sure

  • you have the correct user roles to follow this guidance.
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Background

This guidance

  • provides you with the initial processes that must be followed before you work an Unfinalised In Year S17 work list item or Unprocessed In Year S17 work list item
  • must be followed, when you are told to do so, prior to following other In Year Finalisation guidance.

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 for the following household notes, for how to do this, use TCM1000067

  • UA37 - only if it contains reference to CRA and the messages UA33 or UA97 are not present
  • UA41
  • UA44 - only if it contains reference to HRR and the messages UA45 or UA50 are not present
  • UA58
  • UA59 - only if it contains reference to CRA and the messages UA33 or UA97 are not present
  • UA67
  • UA72
  • UA95 - only if it contains reference to CRA and the messages UA33 or UA97 are not present.

If any of these notes are present, make a note and go to Step 2.

If none of these notes are present, go to Step 2.

Top of page

Step 2

If you are dealing with a work list item

  • access the relevant Unprocessed In Year S17 work list or Unfinalised In Year S17 work list and make a note of the reason for the work list item. For how to do this, use TCM1000004
  • check whether you can work the work list item. Follow the guidance in TCM0138020

If you are told to return to this guidance

If you are dealing with correspondence or have been redirected from another piece of In Year Finalisation guidance, go to Step 7.

If you are dealing with an expired action date as the ‘Claim under Enquiry’ or ‘Inhibited’ signal was shown, go to Step 3.

If you are dealing with an expired action date as the ‘SCO Enquiry’ signal was shown, go to Step 4.

Top of page

Step 3

Contact the designated Compliance Officer to check for progress. For how to do this, use TCM1000022.

If the designated Compliance Officer tells you to continue with your action

  • update household notes with TI12. For how to do this, use TCM1000001
  • go to Step 7

If the designated Compliance Officer tells you not to continue with your action

  • ask the Compliance Officer for a new specific action date
  • set the action date. For how to do this, use TCM1000008
  • update household notes with TI13
  • transfer the work item to the ‘Compliance - In Year Finalisation Related’ MU if you have not already done so. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • bf correspondence, if any
  • no further action.

Top of page

Step 4

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the CIO tells you to continue with your action, go to Step 7

If the CIO tells you not to continue with your action

  • ask the CIO for a new specific action date
  • set the action date
  • update household notes with TI11
  • transfer the work item to the ‘Compliance - Renewals Related’ MU if you have not already done this.
  • bf correspondence, if any
  • no further action.

Top of page

Step 5

If there was more than one reason noted in Step 1 for the work list item, go to Step 6.

If there was only one reason noted in Step 1 for the work list item, go to Step 7.

Top of page

Step 6

Check if it is a work list item. A multi-entry work list item will have two or more of the following reasons for the work item

  • verification failures - this reason will have been shown as ‘VF’
  • unprocessed change of circumstances - this reason will have been shown as ‘Un-Coc’
  • no previous year (PY) - this reason will have been shown as UY-1 not finalised
  • terminated - this reason will be shown as UY Terminated.

If it is not a multi-entry work list item, go to Step 7.

If it is a multi-entry work list item, make a note of all reasons, go to Step 7.

Note: All reasons will need to be considered and worked separately

Top of page

Step 7

Check if the status ‘Terminated Compliance’ is shown on the tax credits computer. For how to do this, use TCM1000153.

If ‘Terminated Compliance’ is not shown, go to Step 9.

If ‘Terminated Compliance’ is shown and you are dealing with a work list item, go to Step 8.

If ‘Terminated Compliance’ is shown and you are dealing with a Work Area Mailbox (WAM) referral, go to Step 8.

If ‘Terminated Compliance’ is shown and you are dealing with correspondence, go to Step 8.

Top of page

Step 8

Check the award status. For how to do this, use TCM1000025.

If the award is not finalised

  • contact the designated Compliance Officer. For how to do this, use TCM1000022
  • ask them to finalise the PY award
  • update Household Notes with the message TI04
  • transfer the work item to the miscellaneous - ‘Worked and Cleared’ MU. Use TCM0322460 for the correct MU number
  • place the WAM referral in confidential waste if required
    or
  • send any other correspondence to storage if required. For how to do this, use TCM0074140
  • no further action.

If the award is finalised

  • update Household Notes with the message TI04
  • transfer the work item to the miscellaneous - ‘Worked and Cleared’ MU. Use TCM0322460 for the correct MU number
  • place the WAM referral in confidential waste if required
    or
  • send the correspondence to storage if required. For how to do this, use TCM0074140
  • no further action.

Top of page

Step 9

On the ‘View In Year Section 17 - Current Position’ screen

  • select ‘Signals’. The ‘View In Year Section 17 - Current Signals’ screen will display
  • check whether any signals have been set.

If any of the following signals have been set

  • ‘Appeal’, make a note and go to Step 18
  • ‘Refer to SCO’, ‘Claim Under Enquiry’ or ‘Inhibited’, go to Step 11
  • ‘Complex Case’, go to Step 14
  • ‘Applicant 1 Deceased’ or ‘Applicant 2 Deceased’, go to Step 15
  • ‘Household End’ for a joint claim, go to Step 16
  • ‘Household End’ for a single claim and the reason was system terminated, go to Step 17
  • any other reason, go to Step 18
  • ‘RLS’ (Returned Letter Service), follow the guidance in TCM0184200
  • ‘UY Terminated’,

If a signal has not been set, go to Step 10.

Top of page

Step 10

Check Household Notes for any messages relating to the signals below. For how to do this, use TCM1000067.

If there are any messages about the following signals and it is clear the action is ongoing

Note: If there are messages relating to more than one signal, go to the relevant steps in turn for each signal.

  • ‘Under Appeal’

 

  • make a note that the case is under appeal

 

  • go to Step 18.
  • ‘Refer to SCO’, ‘Claim Under Enquiry’ or ‘Inhibited’, go to Step 11.
  • ‘Complex Case’, go to Step 14.
  • ‘Applicant 1 Deceased’ or ‘Applicant 2 Deceased’, go to Step 15.
  • ‘Household End’ for a joint claim, go to Step 16.
  • ‘Household End’ for a single claim and any other reason, go to Step 18.
  • ‘RLS’, follow the guidance in TCM0184200.

If there are any messages about the signals and it is clear the action has been completed, the action is not relevant or the action is not ongoing

For example: There may be a ‘Complex Case’ signal set but Household Notes state that it is not a genuine complex case.

If there are not any messages relating to the signals, go to Step 18.

Top of page

Step 11

Check whether the ‘Finalisation Inhibited’ signal has been set, and the reason why. For how to do this, use TCM1000578.

If the ‘Finalisation Inhibited’ signal has been set with a reason of ‘Compliance’, go to Step 12.

If the ‘Finalisation Inhibited’ signal was set with a reason of ‘SCO’, go to Step 13.

If the ‘Finalisation Inhibited’ signal has been set with a reason of ‘TCO’, follow the guidance in TCM0270080.

If the ‘Finalisation Inhibited’ signal has not been set or it has been set for any other reason, go to Step 19.

Top of page

Step 12

Contact the designated Compliance Officer to establish if you can continue with your action.

If the designated Compliance Officer tells you to continue with your action, go back to Step 9 to consider any other signals.

If the designated Compliance Officer tells you not to continue with your action

  • ask the Compliance Officer for a specific action date
  • set the action date
  • update Household Notes with the message TI13
  • transfer the work item to the ‘Compliance -In Year Finalisation Related’ MU
  • bf any correspondence
  • no further action.

Top of page

Step 13

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the CIO tells you to continue with your action, go back to Step 9 to consider any other signals.

If the CIO tells you not to continue with your action

  • ask the CIO for a specific action date
  • set the action date
  • update Household Notes with the message TI11
  • transfer the work item to the ‘Compliance -In Year Finalisation Related’ MU
  • bf any correspondence you may have
  • no further action.

Top of page

Step 14

Check Household Notes to determine if the case is a genuine Complex Case. For how to do this, use TCM1000067.

If the case is not a genuine Complex Case, go to Step 15.

If the case is a genuine Complex Case

  • transfer the work list item to the ‘International Renewals IN’. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
    or
  • send any correspondence to the International Team or Model Office
    then, in either instance
  • update Household Notes with the message TI16
  • no further action.

Top of page

Step 15

If you are dealing with a work list item

  • transfer the work list item to the appropriate MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household Notes with the message
  • no further action.

If you are dealing with correspondence

  • send the correspondence to the Priority 1 Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • update Household Notes with the message TI17
  • no further action.

Top of page

Step 16

Check on the tax credits computer the reason the household has ended. For how to do this, use TCM1000013.

If the household was ended due to ‘Household Breakdown’ and you are dealing with a joint claim

  • make a note of the date the household was ended
  • follow the guidance in TCM0258080
  • if you are told to return to this guidance, go to Step 17

If there is any other reason for the household ending, go to Step 17

If there is no message relating to a household breakdown, go to Step 18.

Top of page

Step 17

Check on the tax credits computer for the reason the household ended. For how to do this, use TCM1000013.

If the household ended because of ‘System termination’, go to Step 18.

If the household ended because of ‘Household Breakdown’ and you are dealing with a joint claim

  • make a note of the date the household ended
  • follow the guidance in TCM0258080
  • if you are told to return to this guidance, go to Step 19

If there is any other reason for the household ending, go to Step 19.

Top of page

Step 18

Check Household Notes for the following message ‘20XX/20XX Award finalised ‘off system’ on information held, [some other information may be recorded here]. Claim will still show as Unfinalised on system’. For how to do this use, TCM1000067.

If the message has been recorded

Note: If the message has been recorded, the claim will still show as ‘Unfinalised’ on the ‘View In Year Section 17 - Current Position’ screen in function ‘View In Year S17 Details’.

  • check the status of the In Year Finalisation. For how to do this, use TCM1000594.
  • go to Step 19.

If the message has not been recorded

  • check and make a note of any other relevant In Year Finalisation messages in Household Notes as these may impact on your work item. For how to do this, use TCM1000067

Note: If there is a note that states the renewal was ‘Finalised in Error’, treat the claim as finalised.

  • check if the UY status is ‘Terminated’. For how to do this, use TCM1000153
  • go to Step 19.

Top of page

Step 19

If you are capturing an In Year Declaration, go to Step 20

If the status of the In Year Finalisation is ‘Refer to Declaration’, go to Step 20

If the status of UY-1 is ‘Finalised’, UY isn’t ’Terminated’ or there is not any UY entitlement

  • check whether you can make the change. Follow the guidance in TCM0042260
  • if you can make the change, go to Step 20.

Top of page

Step 20

If you were instructed to follow this guidance from another piece of guidance and the status is ‘UY not terminated’

  • follow the guidance in TCM0262080
  • return to the guidance you were previously following.

If you were instructed to follow this guidance from another piece of guidance and the status of the In Year Finalisation is anything else, go to Step 21

If you have not been instructed to follow this guidance from another piece of guidance, using your work list item reason notes at Step 1, consider the information in TCM0270240.

Top of page

Step 21

If you are dealing with correspondence, send the correspondence to storage. Follow the guidance in TCM0074140.

If you are dealing with a work list item

  • refer the claim to your TALLO
  • transfer the work list item to the ‘Worked and Cleared’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023.