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HMRC internal manual

Tax Credits Manual

Stopping tax credits: work lists: Unprocessed In Year S17 (IYS17)

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020
  • you have the correct user roles to follow this guidance
  • you are in the correct MU. Use TCM0322460 for the correct MU number
  • you have access to the Access to DWP Data (ADD) system.
  • You have access to Real Time Information (RTI)

Background

Once all Award Declarations that are due for a household have been captured, the following checks need to be completed in this order

  • a validity check
  • completeness check
  • compatibility check
  • an RTI compatibility check.

Where a case fails one or more of these checks, a work item is created on the ‘Unprocessed In Year S17 worklist’ and processing will not continue until user action has been completed.

This guidance is to be followed for all Invalid, Incomplete, Incompatible and RTI Incompatible cases.

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.

Note: For a complete list and explanation of all In Year S17 worklist reasons, use TCM0370040.

Step 1 {#}

If you are dealing with a case and the worklist reason contains ’FIN’, ‘DUP’ or ‘SUPSE’

  • transfer the work item to the ‘Unprocessed In Year S17 Worked and Cleared MU’. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • take no further action

If you are dealing with a case with a worklist reason of ‘LOGGED’ and the item was created less than 5 days from today’s date

  • take no further action

If you are dealing with a case with a worklist reason of ‘LOGGED’ and the item was created 5 days ago or more from today’s date, go to Step 2.

If you are dealing with a new case with an ‘INVALID’, ‘INCOMPLETE’ or ‘INCOMPATIBLE’ worklist reason, go to Step 2.

If you are dealing with a case with an RTI worklist reason of IYRTIOINCMPT’, ‘IYRTIODISINCMPT’, ‘IYRTIOINCMPTHB’ or ‘IYRTIODISINCMPTHB’

  • make a note to contact the customer to confirm their employed income
  • go to Step 22.

If you are dealing with a case with an RTI worklist reason of IYRTIINCMPT’ or ‘IYRTIDISINCMPT’

  • make a note to contact the customer to confirm their other household income
  • go to Step 22.

If you are dealing with a reply to TC664IYF, go to Step 23.

If you are dealing with an expired TC664IYF BF, go to Step 29.

Step 2

Access Household Notes to check whether a Loss of Benefit Sanction has been applied. For how to do this use TCM1000067. Make a note of the sanction period.

Note: a Loss of Benefit Sanction can be identified by the UB24 Household Note which will show you the period that the sanction has been applied.

Note: Loss of Benefit Sanctions are penalties that are applied where a customer or their partner have been convicted of a benefit fraud offence or accepts an administrative penalty for such an offence.

If there is no Loss of Benefit Sanction, go to Step 3.

If the Loss of Benefit Sanction period ends before the UC start date, go to Step 3.

If the Loss of Benefit Sanction period ends after the UC start date

  • send a MGP1c referral including the TC stop date and the UC start date to the Loss of Benefit Sanction team inbox informing them of the date that the customer claimed Universal Credit (UC)
  • go to Step 3.

Step 3

Check whether the customer has indicated their circumstances are correct on the Award Declaration. For how to do this, use TCM1000621.

If the customer has checked the ‘Yes’ checkbox indicating their circumstances are correct, go to Step 4.

If the customer has not checked either the ‘Yes’ or ‘No’ checkbox

  • Make a note that you will need to select ‘Yes’ in the SOC checkbox upon completing the capture of the Annual Declaration
  • go to Step 4.

If the customer has checked the ‘No’ checkbox indicating their circumstances are not correct and Household Notes does not show that they have provided the required information by phone

  • make a note you will need to contact the customer to confirm their circumstances
  • go to Step 4.

If the customer has checked the ‘No’ checkbox indicating their circumstances are not correct and Household Notes show that they have provided the required information by phone

  • Make a note that you will need to apply the Change of Circumstances prior to completing the capture of the Annual Declaration
  • go to Step 4.

Step 4

Check whether the Non Taxable Social Security Benefit information present on the IYS17 and in ‘Application Correction’ match. For how to do this, use TCM1000571 and TCM1000005.

If Non Taxable Social Security Benefit information is present on the IYS17 but not in ‘Application Correction’, go to Step 5.

If Non Taxable Social Security Benefit information is present in ‘Application Correction’ but not in the IYS17, go to Step 5.

If Non Taxable Social Security Benefit information is present on both IYS17 and in ‘Application Correction’, go to Step 5.

If Non Taxable Social Security Benefit information is not present on either the IYS17 or in ‘Application Correction’, go to Step 6.

Step 5

Access ADD and check whether there is a Non Taxable Social Security Benefit claim for the UY period.

Note: Non Taxable Social Security Benefits include IS, Jobseekers Allowance (Income Based) and Employment Support Allowance (Income Based).

If ADD shows a live Non Taxable Social Security Benefit claim for the whole of the UY period

  • make a note that you will need to update the IYS17 None Taxable Social Security Benefit checkbox if appropriate upon completing the capture of the Annual Declaration
  • go to Step 21.

If ADD does not show a live Non Taxable Social Security Benefit claim for the whole of the UY period

  • make a note that you will need to uncheck the Non Taxable Social Security Benefit checkbox in the IYS17 upon completing the capture of the Annual Declaration
  • go to Step 6.

Step 6

Check whether the IYS17 total household income falls within the income bandings. For how to do this, use TCM1000613.

If the total household income falls within the income bandings, go to Step 14.

If the total household income does not fall within the income bandings, go to Step 7.

Step 7

Check whether Self-Employed details are present in ‘Application Correction’. For how to do this, use TCM1000005.

If ‘Application Correction’ indicates the customer is Self-Employed, go to Step 8.

If ‘Application Correction’ does not indicate the customer is Self-Employed, go to Step 11.

Step 8

Check whether Self-Employed income is included in the IYS17. For how to do this, use TCM1000571.

If the IYS17 includes correctly formatted Self-Employed income, go to Step 9.

If the IYS17 does not include correctly formatted Self Employed income

  • make a note to contact the customer and confirm their Self-Employed income for the UY period
  • go to Step 11.

Step 9

Check whether there is PY Self-Employed income for the customer held in ‘Application Correction’. For how to do this, use TCM1000005.

If PY Self Employed income is present in ‘Application Correction’, go to Step 10.

If PY Self Employed income is not present in ‘Application Correction’, go to Step 11.

Step 10

Check whether the Self-Employed income included in the IYS17 falls within the daily rate income thresholds. For how to do this, use TCM1000610 and TCM1000611.

If the Self-Employed income included in the IYS17 falls within the income threshold, go to Step 11.

If the Self-Employed income included in the IYS17 does not fall within the income threshold

  • make a note to contact the customer and confirm their Self-Employed income for the UY period
  • go to Step 11.

Step 11

Check whether Taxable Social Security Benefit income is present in the IYS17 and ‘Application Correction’ match. For how to do this, use TCM1000005.

If correctly formatted Taxable Social Security Benefit information is present on the IYS17 but not in ‘Application Correction’, go to Step 12.

If correctly formatted Taxable Social Security Benefit information is present in ‘Application Correction’ but not in the IYS17, go to Step 13.

If correctly formatted Taxable Social Security Benefit information is present on both IYS17 and in ‘Application Correction’, go to Step 12.

If correctly formatted Taxable Social Security Benefit information is not present on either the IYS17 or in ‘Application Correction’, go to Step 14.

Step 12

Check whether the Taxable Social Security Benefit income held on the IYS17 is within tolerance of data held on ADD. For how to do this, use TCM1000638.

Note: for a list of Taxable Social Security Benefits, use TCTM04402.

If ADD holds Taxable Social Security Benefit and the IYS17 Taxable Social Security Benefit income is within tolerance, go to Step 14.

If ADD holds Taxable Social Security Benefit and the IYS17 Taxable Social Security Benefit income is not within tolerance

  • make a note to contact the customer and request an explanation as to why the Taxable Social Security Benefit income they have provided differs from data we hold
  • go to Step 14.

If ADD does not hold Taxable Social Security Benefit income for the UY period

  • make a note to update the IYS17 with £0 for Taxable Social Security Benefits upon completing the capture of the Annual Declaration
  • go to Step 14.

Step 13

Check whether there is Taxable Social Security Benefit income for the customer held on ADD for the UY period.

If ADD holds Taxable Social Security Benefit income for the UY period

  • calculate the total Taxable Social Security Benefits paid for the UY period.

Note: for a list of Taxable Social Security Benefits, use TCTM04402.

  • make a note that you will need to update the IYS17 with the total Taxable social Security Benefits paid for the UY period upon completing the capture of the Annual Declaration
  • go to Step 14.

If ADD does not hold Taxable Social Security Benefit income for the UY period

  • make a note to update the IYS17 with £0 for taxable social security benefits upon completing the capture of the Annual Declaration
  • go to Step 14.

Step 14

Check whether Employed details are present in ‘Application Correction’. For how to do this, use TCM1000005.

Note: there may be scenarios where a 4 week run on has been applied in PY which makes the customer appear as employed in UY. In these scenarios you must treat the customer as not being employed.

If ‘Application Correction’ indicates the customer is employed, go to Step 15.

If ‘Application Correction’ indicates the customer is not employed, go to Step 19.

Step 15

Check whether Employed income is included in the IYS17. For how to do this, use TCM1000571.

If the IYS17 includes correctly formatted Employed income, go to Step 16.

If the IYS17 does not include correctly formatted Employed income, go to Step 18.

Step 16

Check whether there is Employed income for the customer held on RTI for the UY period.

If RTI holds employed income for the customer for the UY period, go to Step 17.

If RTI does not hold employed income for the customer for the UY period, go to Step 19.

Step 17

Check whether the IYS17 employed income is within RTI tolerances. For how to do this, use TCM1000612.

Note: for a list of allowable deductions to income, follow the guidance in TCM0322175.

If the IYS17 employed income is within RTI tolerances, go to Step 19.

If the IYS17 employed income is not within RTI tolerances

  • make a note to contact the customer and request an explanation as to why the employed income they have provided differs from RTI
  • go to Step 19.

Step 18

Check whether there is Employed income for the customer held on RTI for the UY period. For how to do this, use TCM1000505.

If RTI holds employed income for the customer for the UY period

  • make a note to update the IYS17 with RTI employed income upon completing the capture of the Annual Declaration
  • go to Step 19.

If RTI does not hold employed income for the customer for the UY period

  • make a note to contact the customer and request employed income for the UY period
  • go to Step 19.

Step 19

Check whether there is Other household income for the customer held on RTI for the UY period. For how to do this, use TCM1000505.

Note: for a list of ‘Other’ household Income types, see TCM0120020.

If RTI holds Other household income for the customer for the UY period, go to Step 20.

If RTI does not hold Other household income for the customer for the UY period, go to Step 21.

Step 20

Check whether Other household income is present and within tolerance of the RTI data.

If Other household income is present on the IYS17 and within tolerance, go to Step 21.

If Other household income is present on the IYS17 and is outside of tolerance

  • make a note to contact the customer and request an explanation as to why the Other household income they have provided differs from RTI.
  • go to Step 21.

If Other Household Income is not present on the IYS17

  • make a note to update the IYS17 with RTI Other household income upon completing the capture of the Annual Declaration
  • go to Step 21.

Step 21

Check any notes you have made to establish whether you need to contact the customer

If you need to contact the customer, go to Step 22.

If you do not need to contact the customer

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note to update the IYS17 if required
  • update Household notes with the message TU01* *from TCM0174020. For how to do this, use TCM1000001
  • go to Step 31.

Step 22

Contact the customer by telephone to confirm all required information. For how to do this follow the guidance in TCM0094080.

Note: for a list of allowable deductions to income, follow the guidance in TCM0322175.

Note: where you are dealing with a new claim with an RTI worklist reason you may wish to check Household Notes to determine whether the reason for the RTI discrepancy has been recorded by the helpline.

If you were able to contact the customer

  • make a note that you will need to update the IYS17 with the details the customer has supplied upon completing the capture of the Annual Declaration
  • go to Step 23.

If you were unable to contact the customer, or were unable to obtain all required information from the customer

Note: Any updates should be made only after you have received a reply to the TC664IYF or upon BF expiry.

  • complete and send TC664IYF requesting details of all earnings/benefit figures. For how to do this, use TCM1000124

Note: Select the extra question paragraph and input the following question to cover any possible discrepancy that the customer will need to explain,

“Your employer/pension provider (delete as appropriate)* has told us your employed/pension income figure was £XXXX for the period 06/04/YYYY to DD/MM/YYYY. *(UY period)

You have told us that your employed/pension income figure was £XXXX for the period 06/04/YYYY to DD/MM/YYYY. (UY period)

We need you to tell us why there is a difference between these two income figures and provide your final payslip issued prior to DD/MM/YYYY or bank statement covering the period 06/04/YYYY to DD/MM/YYYY (UY period) to support your income figure..

To help you work out the reason for the difference between the income provided by you and your employer / pension provider, some of the most common reasons are because:

  • you paid into a pension scheme
  • you deducted maternity pay or adoption pay
  • you deducted paternity pay

For more information about deductions that you can make from your income for tax credits purposes, please visit

If we do not hear from you we may process your award using the information we hold.

  • set an action date for 30 days in the future. For how to do this, use TCM1000008
  • transfer the work item to the ‘Unprocessed IYS17 BF’ MU. Use TCM0322460 for the correct MU number. For how to do this, use TCM1000023
  • update Household notes with the message TU02* *from TCM0174020. For how to do this, use TCM1000001
  • take no further action.

Step 23

Check your notes to determine the reason for customer contact.

If you contacted the customer due to a blank income field, go to Step 24.

If you contacted the customer because the IYS17 employed income or other income amount is outside the RTI threshold, go to Step 25.

If you contacted the customer due to an incorrectly formatted income field, go to Step 26.

If you contacted the customer to confirm their circumstances, go to Step 27.

Step 24

Check the information provided.

If the customer has provided a replacement income figure

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income figure in ‘Capture In Year Details’ upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU19 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

If the customer has not provided a replacement income figure

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income field with RTI data where available, otherwise enter £0, upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU12 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

Step 25

Check whether the customer has given us a satisfactory explanation as to why their income/other income details are different from the figures supplied by their employer/pension provider.

Note: This could be because the customer pays into a pension scheme, or they have deducted maternity, adoption or paternity pay. They may also have made gift aid contributions. This is not a complete list. Follow the guidance in TCM0322175 for a list of allowable deductions from income.

If you are satisfied with the explanation the customer has provided

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income/other income figure on the IYS17 with the customer supplied figure upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU11 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

If you are not satisfied with the explanation the customer has provided

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income/other income figure on the IYS17 with the RTI figure upon completing the capture of the Annual Declaration
  • issue a TC2001 from SEES. For how to do this, use TCM1000124
  • update Household Notes with the message TU05 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

Step 26

You will need to make a note of the correct income figure that the customer has supplied and which income type this relates to. 

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income figure in ‘Capture In Year Details’ upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU17 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

Step 27

Apply the change of circumstances supplied by the customer and check whether entitlement has now ceased prior to the household end date. For how to do this, use TCM1000089

Note: Entitlement may have ended depending on what the change in circumstances relates to.  For example the customer may be reporting a household breakdown, which is earlier than the date reported on the UC Stop Notice, or a child may have left the household before the date reported on the UC Stop Notice.

If the change of circumstances ceases entitlement prior to the household end date

  • disregard the IYS17. For how to do this, use TCM1000464
  • mark the IYS17 as not Served. For how to do this, use TCM1000103
  • update Household Notes with the message TU13 from TCM0174020. For how to do this, use TCM1000001
  • take no further action

If the change of circumstances does not cease entitlement prior to the household end date

  • make a note you will need to change SOC box entry from ‘N’ to ‘Y’ upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU38 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

If the customer has confirmed that their circumstances are correct

  • make a note you will need to change SOC box entry from ‘N’ to ‘Y’ upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU39 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 28.

Step 28

Check your notes to determine whether you contacted the customer for another reason

If you contacted the customer for another reason, go back to Step 23.

If you did not contact the customer for another reason, go to Step 31.

Step 29

Check your notes to determine the reason for customer contact.

If you contacted the customer due to a blank income field

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income field with RTI data where available, otherwise enter £0, upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU31 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 30.

If you contacted the customer because the IYS17 employed income or other income amount is outside the RTI threshold

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to update the income/other income figure on the IYS17 with the RTI figure upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU10 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 30.

If you contacted the customer due to an incorrectly formatted income field

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to remove the unacceptable income figure in ‘Capture In Year Details’ upon completing the capture of the Annual Declaration
  • make a note you will need to update the income field with RTI data where available, otherwise enter £0, upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU18 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 30.

If you contacted the customer to confirm their circumstances

  • set the IYSD to tomorrows date. For how to do this, use TCM1000579
  • make a note you will need to change SOC box entry from ‘N’ to ‘Y’ upon completing the capture of the Annual Declaration
  • update Household Notes with the message TU42 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 30.

Step 30

Check your notes to determine whether you contacted the customer for another reason

If you contacted the customer for another reason, go back to Step 29.

If you did not contact the customer for another reason, go to Step 31.

Step 31

Process the declaration.

Note: You will need to check whether you need to make any changes to the information held, that you have identified at any of the previous steps.

Note: where the IYS17 does not contain any income details you will need to enter £0 in the ‘other household income’ field before processing. For how to do this, use TCM1000600.

  • process the declaration. For how to do this, use TCM1000584
  • select ‘No’ to any RTI error messages that appear and ‘Yes’ to any non-RTI error messages
  • take no further action