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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Stopping tax credits: specialist areas: preventing dual provision for 16 to 19-year-olds who claim UC in their own right

Checklist

Before you follow this guidance, make sure

  • you have the correct user roles to follow this guidance.
  • you have followed the guidance in TCM0134420
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Background

With the introduction of Universal Credit (UC) there have been changes in legislation to prevent dual provision for 16 to 19 year olds who claim Universal Credit in their own right and are included as a qualifying young person in a child benefit and tax credit claim.

Note: Child Benefit Office will have already made initial enquiries to establish the earliest date to exclude the child. A referral will be made to TCO providing the information currently available.

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 dealing with a new work item, go to Step 2.

If you are dealing with an expired BF date, go to Step 10.

If you are dealing with a reply to a previous enquiry and all the information has been provided, go to Step 4.

If you are dealing with a reply to a previous enquiry and all the information has not been provided, go to Step 7.

If you are dealing with a returned TALLO query, go to Step 6.

Step 2

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

If the claim is pre-award, go to Step 3.

If the claim is post award, go to Step 5.

Step 3

Check whether there will be any entitlement for the young person when the claim is processed. For how to do this, use TCM1000089.

If there is a period of entitlement between the date of the claim and the responsibility end date, go to Step 4.

If there is no period of entitlement between the date of the claim and the responsibility end date

  • remove the relevant young person from the claim. For how to do this, use TCM1000300
  • update Application Notes with the message TY01 from TCM0174020. For how to do this, use TCM1000028
  • send any correspondence to storage (if applicable). Follow the guidance in TCM0074140.

Step 4

Enter the following details on the ‘Free Format’ screen for the relevant child or young person reason for the change:

  • name
  • date of birth
  • the responsibility end date. For how to do this, use TCM1000036
  • update Application Notes with the message TY01 from TCM0174020. For how to do this, use TCM1000028
  • send any correspondence to storage (if applicable). Follow the guidance in TCM0074140.

Step 5

Check the tax credits computer to establish if the young person is present on a claim. For how to do this, use TCM1000240

If the young person is not present on a claim

  • take no further action.

If the young person is present on a claim, go to Step 6.

Step 6

Check ADD to obtain the UC assessment start date by following the guidance available in the ‘ADD Helpcard’.

If there is no UC payment but there is IS, ESA or JSA, follow the guidance in TCM0034120

If you are unable to obtain the UC assessment start date after following this guidance

  • alert your TALLO
  • take no further action.

If you are able to obtain UC assessment start date after following this guidance, go to Step 7.

Step 7

Check the tax credit computer for a responsibility end date or a Full Time Non Advanced Education (FTNAE) or Approved Training end date for the qualifying young person. For how to do this, use TCM1000245 and TCM1000384

Note: The responsibility end date will need to be used when end dates are also present for FTNAE or Approved Training.

If a responsibility, FTNAE or Approved Training end date is present, go to Step 9.

If a responsibility, FTNAE or Approved Training end date is not present, go to Step 8.

Step 8

Contact the customer for a responsibility end date. For how to do this, use TCM0094080.

Note: You can only discuss the customer’s claim, you can disclose that there is another benefit in payment that is conflicting with their tax credit claim. You cannot disclose which benefit is causing the conflict.

Note: You will need to establish the date the young person left FTNAE, Approved training or the household and make a note of this date.

If you are able to contact the customer and obtain all the missing information

  • inform the customer that we will notify them of any decision we have made
  • make a note of the FTNAE, Approved Training or responsibility end date provided by the customer
  • go to Step 9.

If you are unable to contact the customer and obtain all the missing information

  • complete form TC664 for the missing information. For how to do this, use TCM1000009
  • issue the completed form to the customer
  • set a clerical BF date for 30 days in the future
  • update Application Notes or Household Notes with the message TY02 from TCM0174020. For how to do this, use TCM1000028 or TCM1000001
  • take no further action - await BF expiry or customer response.

Step 9

Compare the earliest date the young person ceases to meet the qualifying young person entitlement conditions against the UC assessment start date minus 1 day.

If the dates are the same, go to Step 11.

If the dates are not the same, go to Step 12.

Step 10

Check whether there are any Household notes where the customer has provided the missing information. For how to do this, use TCM1000067.

If there is a Household note and the missing information has been provided, go to Step 11.

If there is no Household Note containing the missing information, go to Step 12.

Step 11

Check the tax credit computer holds the correct date the young person ceases to meet the qualifying young person entitlement conditions. For how to do this, use TCM1000245 and TCM1000384.

If you need to amend or update the claim the young person is in with an end date

  • follow the guidance in TCM0042260 then return to this step
  • update Household Notes with the message TY01 from TCM0174020. For how to do this, use TCM1000001
  • where the customer has not responded to the TC664
  • send any correspondence to storage (if applicable). Follow the guidance in TCM0074140.

If you do not need to amend or update the claim the young person is in with an end date

  • update Household Notes with the message TY01 from TCM0174020. For how to do this, use TCM1000001
  • where the customer has not responded to the TC664
  • send any correspondence to storage (if applicable). Follow the guidance in TCM0074140.

Step 12

Consider whether you have sufficient evidence to amend the customer’s award.

Note: This could include evidence provided by UC or CBO to show that the young person no longer meets the qualifying young person conditions because they are now receiving UC.

If you have sufficient evidence to amend the customer’s award, go to Step 13.

If you do not have sufficient evidence to amend the customer’s award

  • complete form TC664 for the missing information. For how to do this, use TCM1000009
  • issue the completed form to the customer
  • set a clerical BF date for 30 days in the future
  • update Household Notes with the message TY02 from TCM0174020. For how to do this, use TCM1000001
  • take no further action.

Step 13

Use the Universal Credit Assessment date you obtained from ADD and minus one day. This date will be used to end responsibility for the young person on the claim.

  • follow the guidance in TCM0042260 then return to this step
  • update Household Notes with the message TY01 from TCM0174020. For how to do this, use TCM1000001
  • where the customer has not responded to the TC664
  • send any correspondence to storage (if applicable). Follow the guidance in TCM0074140.
  • take no further action.