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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Stopping tax credits: work lists (unprocessed): RTI incompatible

Archived 22/07/2016

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020 
  • you follow the guidance in TCM0346560 
  • you 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
  • you are in the correct MU. Use TCM0322460 for the correct MU number
  • you have access to the National Insurance and Pay As You Earn System (NPS)
  • you have access to the Access To DWP (ADD) system.

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 .

If you have issued a TC664 or a TCC50 and the action date has expired, go to .

If you have issued a TC664 or a TCC50 and the customer has replied, go to .

If you are dealing with a telephone call from the customer, go to .

If an enquiry has been returned RLS, go to .

Step 2

If the customer has replied to a TC664 or a TCC50 and has provided all the details you need to complete the renewal, go to .

If you are dealing with a reply to either a TC664 or a TCC50 and all the information has not been received, go to .

Step 3

Check for a new address. Follow the guidance in TCM0184200.

If a new address is found 

  • reissue the TCC50 or the TC664 as appropriate, to the customer
  • take no further action.

If a new address is not found, go to .

Step 4

If you are dealing with an RTI Incompatible worklist reason, go to .

If you are dealing with an RTI Discrepancy Incompatible worklist reason, go to .

If you are dealing with an RTI other Incompatible worklist reason, go to .

If you are dealing with an RTI Other Discrepancy Incompatible worklist reason, go to .

If you are dealing with an RTI Other Incompatible HHBD worklist reason, go to .

If you are dealing with an RTI Other Discrepancy Incompatible HHBD worklist reason, go to .

If you are dealing with a non-RTI Incompatible worklist reason, go to .

Step 5

Use the Access to DWP Data (ADD) system to establish if the customer or their partner were in receipt of any qualifying benefit during the whole of the IY award period (UY). Follow the guidance in the Access to DWP Data System manual. For how to do this, use TCM1000014.

If ADD shows that the customer or their partner was in receipt of a qualifying benefit during the whole of UY, go to .

If ADD shows that the customer or their partner was not in receipt of a qualifying benefit during the whole of UY, go to .

Step 6

Make a note that the customer and their partner, if they have one, have been in receipt of a qualifying benefit for the whole of the UY award period.

Note: Although NTC has obtained an RTI employment figure for the customer, they do not need to provide a figure for the UY award period.

If the RTI Income Incompatibility is the only worklist item, go to .

If there are other worklist items 

  • make a note on a TC648 that you will need to enter a figure of £1 in the customer’s employed earnings field
  • go back to and work each of the remaining incompatibility reasons in order.

Step 7

You will need to clear the RTI Incompatibility worklist item by using £1 as earnings

  • update the customer’s employed earnings figure with £1 and process the Award Declaration. For how to do this, use TCM1000584 
  • select ‘Yes’ to override the RTI Discrepancy Incompatibility error message that will be displayed
  • update Household Notes with the message TI22 from TCM0174020. For how to do this, use TCM1000001 
  • go to .

Step 8

Access RTI Details. For how to do this use, TCM1000571 

  • make a note of the RTI details and signals on a TC648
  • check whether there are other outstanding incompatibilities.

Note: Ensure that you have dealt with any incompatibilities for both customers in a joint household.

  • go to .

Step 9

If the RTI Income Incompatibility is the only worklist item, go to .

If there are other worklist items 

  • make a note on a TC648 that you will need to contact the customer to confirm that you have obtained an employed income figure from their employer
  • go back to and work each of the remaining incompatibility reasons in order.

Step 10

Contact the customer by phone. Follow the guidance in TCM0094080.

If you are able to contact the customer by phone, go to .

  • ask the customer to confirm their income details
  • go to .

If you are not able to contact the customer by phone

  • make a note that you will need to issue a TC664
  • go to .

Step 11

If the customer has provided an earned income figure that is equal to or more than the RTI figure we have obtained

  • make a note to use the income figure declared by the customer
  • go to .

If the customer has provided an earned income figure less than the RTI figure we have obtained and the difference is within the tolerance

  • make a note to use the income figure declared by the customer
  • go to .

If the customer has provided an earned income figure less than the RTI figure we have obtained and the difference is outside the tolerance, go to .

If the customer has not provided an earned income figure

  • advise the customer that you will continue to use the income provided by their employer and make a note to use the RTI earnings figure
  • go to .

Step 12

Check if the customer can give us a satisfactory explanation as to why their income details are different from the figures supplied by their employer.

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

  • make a note to use the income figure declared by the customer and the reason for the difference
  • go to .

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

  • advise the customer that you will continue to use the income provided by their employer and make a note of this
  • go to .

Step 13

Check if the earned income figure(s) is over the National Minimum Wage (NMW) limits. For how to do this, use TCM0346480 and also the NMW calculator held in the Customer Advisor Guide.

If the employment income for the customer is equal to or above the NMW, go to .

If the employment income for the customer is below the NMW

  • make a note on a TC648 that you will need to issue a TCC50 querying the hours worked
  • go to .

Step 14

Access RTI Details. For how to do this use, TCM1000571 

  • make a note of the RTI details and signals on a TC648
  • check whether there are other outstanding incompatibilities.

Note: Ensure that you have dealt with any incompatibilities for both customers in a joint household.

  • go to .

Step 15

If the RTI Other Income Incompatibility is the only worklist item, go to .

If there are other worklist items 

  • make a note on a TC648 that you will need to contact the customer to confirm that you have obtained an other income figure from their occupational pension provider
  • go back to and work each of the remaining incompatibility reasons in order.

Step 16

Contact the customer by phone. Follow the guidance in TCM0094080.

If you are able to contact the customer by phone, go to .

If you are not able to contact the customer by phone

  • make a note that you will need to issue a TCC50
  • go to .

Step 17

Ask the customer to confirm that the Other Income details they have provided on their Award Declaration are correct

If the customer’s Other income figure is equal to or more than the RTI figure we have obtained

  • make a note to use the income figure declared by the customer
  • go to .

If the customer’s Other income figure is less than the RTI figure we have obtained and the difference is within the tolerance

  • make a note to use the income figure declared by the customer
  • go to .

If the customer’s Other income figure is less than the RTI figure we have obtained and the difference is outside the tolerance 

  • advise the customer that you will continue to use the income provided by their employer and make a note of this
  • go to .

If the customer has not provided an Other income figure

  • advise the customer that you will continue to use the other income provided by their employer and make a note to use the RTI earnings figure
  • go to .

Step 18

Check if the customer can give us a satisfactory explanation as to why their Other income details are different from the figures supplied by their pension provider.

Note: This could be because the customer pays into a pension scheme, or 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

  • make a note to use the Other Income figure declared by the customer and the reason for the difference
  • go to .

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

  • advise the customer that you will continue to use the Other Income provided by their pension provider and make a note of this
  • go to .

Step 19

Use the Access to DWP Data (ADD) system to establish if the customer or their partner were in receipt of any qualifying benefit during the whole of the previous year (PY). Follow the guidance in the Access to DWP Data System manual. For how to do this, use TCM1000014.

If ADD shows that the customer or their partner was in receipt of a qualifying benefit during the whole of PY, go to .

If ADD shows that the customer or their partner was not in receipt of a qualifying benefit during the whole of PY, go to .

Step 20

Make a note that the customer and their partner, if they have one, have been in receipt of a qualifying benefit for the whole of the UY award period.

Note: As the customer has been in receipt of a Qualifying Benefit for the whole of the UY award period, they do not need to provide any income details.

If the Qualifying Benefit Incompatibility is the only worklist item, go to .

If there are other worklist items 

  • make a note on a TC648 that you will need to enter a figure of £1 in the customer’s employed earnings field
  • go to and work each of the remaining incompatibility reasons in order.

Step 21

You will need to clear the RTI Incompatibility worklist item by using £1 as earnings

  • update the customer’s employed earnings figure with £1 and process the Award Declaration. For how to do this, use TCM1000584 
  • select Yes to override the RTI Discrepancy Incompatibility error message that will be displayed
  • update Household Notes with the message TI22 from TCM0174020. For how to do this, use TCM1000001 
  • go to .

Step 22

If there are self-employed details on NTC but no self-employed income details

  • make a note that you will need to contact the customer asking them to confirm their self-employed income details. If you are unable to contact the customer by telephone, you will need to issue a TC664 to the customer to obtain this information
  • go to .

If there are employment details on NTC but no employment income

  • make a note that you will need to contact the customer asking them to confirm their earnings details. If you are unable to contact the customer by telephone, you will need to issue a TC664 to the customer to obtain this information
  • go to .

If there are income details on NTC but no employment details

  • make a note that you will need to contact the customer asking them to confirm their employed or self-employed details on NTC. If you are unable to contact the customer by telephone, you will need to issue a TC664 to the customer to obtain this information
  • go to .

Step 23

Contact the customer by phone. Follow the guidance in TCM0094080.

If you are able to contact the customer by phone, go to .

If you are not able to contact the customer by phone

  • make a note that you will need to write to the customer to obtain the details you require
  • go to .

Step 24

Ask the customer to confirm their correct employed or self-employed status and income based on the notes you have made.

If you have contacted the customer to and confirmed that their job details need including on NTC

  • make a note of the customer’s amended details
  • go to .

If you have contacted the customer and confirmed that their job details need removing from NTC

  • make a note of the customer’s amended details
  • go to .

If the customer confirms that their details are correct, go to .

If the customer does not confirm their details, go to .

Step 25

Check NTC to see if RTI data was used on the award declaration, for how to do this, use TCM1000060.

If you issued a TC664 or a TCC50 to query the customer’s details and RTI data was used on the declaration, go to .

If you issued a TC664 or a TCC50 to query the customer’s details and RTI data was not used on the award declaration, go to .

If you issued a TCC50 only to query the customer’s hours worked, go to .

Step 26

Check the TC664/TCC50/Household Notes to establish the income that the customer has provided for us against the RTI figures that you have already noted.

Note: You must repeat this step if you have also asked for information from a partner.

Note: If you have sent the TC664 and have asked about any missing employment income as well as any other income discrepancies, you must deal with each question separately within this step.

If the customer has provided an earned income figure / amended income figure / other income figure / amended other income figure that is equal to or more than the RTI figure we have obtained

  • make a note to use the income figure declared by the customer
  • go to .

If the customer has provided an earned income figure / amended income figure / other income figure / amended other income figure less than the RTI figure and the difference is within the tolerance

  • make a note to use the income figure declared by the customer
  • go to .

If the customer has provided an earned income figure/ amended income figure / other income figure / amended other income figure less than the RTI figure and the difference is more than the tolerance

  • go to .

If the customer has not provided an earned income figure / amended income figure / other income figure / amended other income figure

  • advise the customer that you will continue to use the earned income provided by their employer and make a note of this
  • go to .

Step 27

Check if the customer can give us a satisfactory explanation as to why their income details are different from the figures supplied by their employer or 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

  • make a note to use the income figure declared by the customer and the reason for the difference
  • go to .

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

  • advise the customer that you will continue to use the income provided by their employer or pension provider and make a note of this
  • go to .

Step 28

Check if the earned income figure(s) is over the National Minimum Wage (NMW) limits. For how to do this, use TCM0346480 and also the NMW calculator held in the Customer Advisor Guide.

If the employment income for the customer is equal to or above the NMW and there are no other enquiries, go to .

If the employment income for the customer is below the NMW

  • make a note on a TC648 that you will need to issue a TCC50 querying the hours worked
  • go to .

If you are dealing with an RTI Oth Incmpt, RTI Oth Dis Incmpt, RTI Oth Incmpt HB or RTI Oth Dis Incmpt HB only, go to .

Step 29

Check if the customer has provided any information to our enquiries and whether this information has been recorded in Household Notes. For how to do this, use TCM1000067 

If the information is recorded in Household Notes and you dealing with an RTI incompatibility, go back to  

If the information is recorded in Household Notes and you dealing with a non-RTI incompatibility, go to  

If the information is recorded in Household Notes and you have issued a TCC50 querying the hours worked only, go to  

If there is no information recorded in Household Notes and you have issued a TCC50 querying the hours worked only

  • calculate the new hours that reflect the customers earnings. Use the NMW table in the Customer Advisor Guide Toolkit
  • update ‘Change of Circumstances’ with the new hours only, do not amend income. For how to do this, follow the guidance in TCM1000364 
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032 

Note: In a joint claim, ensure that both customers details are updated.

  • update Household Notes with the message TI23 
  • go to .

If there is no information recorded in Household Notes and you have issued a TC664 or TCC50 clarifying income details and any hours worked for an RTI incompatibility

  • make a note that you need to use the original RTI information that you originally noted
  • calculate the new hours that reflect the customers earnings. Use the NMW table in the Customer Advisor Guide Toolkit
  • update ‘Change of Circumstances’ with the new hours only, do not amend income. For how to do this, follow the guidance in TCM1000364 
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032 

Note: In a joint claim, ensure that both customers details are updated.

  • update Household Notes with the message TI23 
  • go to .

If there is no information recorded in Household Notes and you have issued a TC664 or TCC50 clarifying income details and any hours worked for a non-RTI incompatibility, go to .

Step 30

Verify the customer’s identity. For how to do this, use TCM0094120.

If the customer is calling in response to a TC664/TCC50 regarding an RTI incompatibility, go back to .

If the customer is calling in response to a TC664/TCC50 regarding a non-RTI incompatibility, go back to .

If the customer is calling in response to a TCC50 sent to query the hours worked only, go to .

Step 31

Consider the explanation given by the customer around the hours worked.

If the customer explains the difference around the hours worked and you accept the explanation, go to .

If the customer explains the difference around the hours worked and you do not accept the explanation

  • calculate the new hours that reflect the customers earnings. Use the NMW table in the Customer Advisor Guide Toolkit
  • update ‘Correction’ with the new hours. For how to do this, follow the guidance in TCM1000364 
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032 

Note: In a joint claim, ensure that both customers details are updated.

  • update Household Notes with the message TI24 
  • go to .

Step 32

Before you make any changes ensure you have considered each Incompatible reason (consider each customer in a joint claim) and make all the changes together.

If the customer has confirmed that their employment details need ending

  • update ‘Amend Application’ with the employment end date that the customer has provided. Where you need to amend any dates to make the records correct, follow the guidance in TCM0048100 or if you need to delete any details, follow the guidance in TCM0042160 
  • go to .

If the customer has confirmed that their employment details need adding

  • update ‘Amend Application’ with the employment details that you have obtained from the customer. Where you need to amend any dates to make the records correct, follow the guidance in TCM0048100 or if you need to delete any details, follow the guidance in TCM0042160 
  • go to .

If the customer has confirmed that their employment details are correct

Note: The customer has confirmed that their employment details are correct. You will therefore need to re-enter their income against their correct employment details.

  • update the Award Declaration with the correct details obtained or provided by the customer. For how to do this, use TCM1000605 
  • process the Award Declaration. For how to do this, use TCM1000600 

Note: If you make any changes to the customer’s income details that cause any RTI incompatibility warning messages to display, you will need to resolve the RTI incompatibilities before you can process the Award Declaration.

  • update Household Notes with the message TI25 
  • go to .

If the customer has not confirmed their employment details

Note: As the customer has failed to confirm their employment details, you will need to remove them from the customer’s award.

  • remove their employment details from their award from 06/04/UY. For how to do this, use TCM0042160 
  • go to .

Step 33

The customer has either confirmed that their employment details shown on our computer are incorrect or has not been able to provide their correct employment details. You will therefore need to remove the income details for the income type shown on NTC

If the date is before IYSD

  • amend the customer’s income details. For how to do this use TCM1000605.
  • process the Award Declaration. For how to do this, use TCM1000600.
  • update Household Notes with the message TI25 
  • go to .

If the date is after IYSD

  • amend the customer’s income details using function ‘Maintain In Year Finalisation’. For how to do this use TCM1000605.
  • process the Award Declaration. For how to do this, use TCM1000600.
  • update Household Notes with the message TI25  
  • go to .

Step 34

Check if the earned income figure(s) is over the National Minimum Wage (NMW) limits. For how to do this, use TCM0262080 and also the NMW calculator held in the Customer Advisor Guide.

If the employment income for the customer is equal to or above the NMW, go to  

If the employment income for the customer is below the NMW

  • make a note on a TC648 that you will need to issue a TCC50 querying the hours worked
  • go to .

Step 35

From the notes you have made, decide which letter you need to issue.

If you need to issue a TC664 only

  • issue the letter TC664 for missing income details from SEES

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 that your employed / pension income figure was £XXXX. If the figure you have provided above is less than the figure your employer / pension provider has told us, please tell us the reason why this is different and send us your final payslip or P60. If we do not hear from you we will amend your award with the information we hold. For more information about deductions that you can make from your income for tax credits purposes, please go to ’

  • update Household Notes with the message TI26 
  • transfer the ‘Unprocessed IYS17’ worklist item to the ‘Unprocessed IYS17 Incompatible BF’ MU. Use TCM0322460 for the correct MU number
  • set an action date for 30 days in the future. For how to do this, use TCM1000008 
  • take no further action.

If you need to issue a TC664 and a TCC50

  • issue a TC664 only. Ensure that all the questions asked are based on the notes you have made. Include the TCC50 questions on the TC664
  • update Household Notes with the message TI26 
  • transfer the ‘Unprocessed IYS17’ worklist item to the ‘Unprocessed IYS17 Incompatible BF’ MU. Use TCM0322460 for the correct MU number
  • set an action date for 30 days in the future. For how to do this, use TCM1000008 
  • take no further action.

If you need to issue a TCC50 only

  • issue a TCC50 only. Ensure that all the questions asked are based on the notes you have made
  • update Household Notes with the message TI26 
  • transfer the ‘Unprocessed IYS17’ worklist item to the ‘Unprocessed IYS17 Incompatible BF’ MU. Use TCM0322460 for the correct MU number
  • set an action date for 30 days in the future. For how to do this, use TCM1000008 
  • take no further action.

Step 36

Update the Award Declaration. For how to do this, use TCM1000600 

If the customer has stated that their earned income or other income is zero and you have confirmed that this is correct

  • from the notes you have made, update and process the Award Declaration. For how to do this, use TCM1000600 and TCM1000584 

Note: In these circumstances only, in order to clear the incompatibility worklist item, you will need to enter the figure of £1 in the customers earnings or Other income field.

  • select ‘No’ to override any RTI Discrepancy or RTI Other Discrepancy error messages that may display
  • update Household Notes with the message TI27  
  • go to .

If any other circumstances apply

  • from the notes you have made, update and process the Award Declaration. For how to do this, use TCM1000600 and TCM1000584 
  • select ‘No’ to override any RTI Discrepancy or RTI Other Discrepancy error messages that may display
  • update Household Notes with the message TI28 
  • issue a TC2001 from SEES. For how to do this, use TCM1000124 

Note: You must only issue the TC2001 if the customer has responded to our enquiries. If you have had no response, there is no need to issue this letter.

  • go to .

Step 37

Check if the work item is still visible on the ‘Unprocessed IYS17’ worklist. For how to do this, use TCM1000155.

If the work item is no longer visible on the ‘Unprocessed IYS17’ worklist

  • send the correspondence to storage. Follow the guidance inTCM0074140 
  • take no further action.

If the work item is still visible on the ‘Unprocessed IYS17’ worklist with the ‘RTI Incompatibility’ reason, go to .

If the work item is still visible on the ‘Unprocessed IYS17’ worklist with any other reason than ‘RTI Incompatibility’

  • transfer the worklist item to the relevant MU for that work task. Use TCM0322460 for the correct MU number
  • send the correspondence to storage. Follow guidance in TCM0074140 
  • take no further action.

Step 38

If the claim is finalised

  • transfer the worklist item to the ‘Unprocessed IYS17 phase 2 worked and cleared’ MU. Use TCM0322460 for the correct MU number
  • send the correspondence to storage. Follow the guidance in TCM0074140 
  • take no further action.

If the claim is not finalised

  • refer the case to your TALLO to establish why the claim has not finalised

Note: If your TALLO can establish the reason why the claim has not finalised, make the amendments as necessary to process the declaration.

  • take no further action.

Step 39

Check if the earned income figure (s) is over the National Minimum Wage (NMW) limits. For how to do this, use TCM0262080 and also the NMW calculator held in the Customer Advisor Guide.

If the employment income for the customer is equal to or above the NMW and there are no other enquiries, go back to .

If the employment income for the customer is below the NMW

  • calculate the new hours that reflect the customers earnings. Use the NMW table in the Customer Advisor Guide Toolkit
  • update ‘Change of Circumstances’ with the new hours only, do not amend income. For how to do this, follow the guidance in TCM1000364 
  • complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032 

Note: In a joint claim, ensure that both customers details are updated.

  • update Household Notes with the message TI29 from TCM0174020. For how to do this, use TCM1000001 
  • go to .