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HMRC internal manual

Tax Credits Manual

Stopping Tax Credits - Complex: Issue and Capture TC603U

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 is to be followed by the International Team working stopping tax credits (STC) in year finalisation.

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 Complex In Year Finalisation case, go to Step 2.

If you are dealing with a Complex In Year Finalisation case where the 1SD BF has expired, go to Step 4.

If you are dealing with a case where the IYS17 was disregarded due to Household Breakdown, go to Step 2.

If you are dealing with a returned Complex IYS17, go to Step 11.

If you are dealing with an expired BF where a TC697 has been issued, go to Step 12

If you are dealing with an expired BF where a complex IYS17 has not been returned, go to Step 14.

If you are dealing with a response to a TC664IYF, go to Step 16.

If you are dealing with an expired BF to a TC664IYF, go to Step 15.

Step 2

Check Household Notes for the following message. For how to do this, use TCM1000067.

’***Payments team do not issue – No further entitlement due, DO NOT TRACE’

Note: this indicates no further manual payment will be made against this claim.

If the message is present, go to Step 3.

If the message is not present

Step 3

Check whether you are working the Complex In Year Finalisation case during the BAU renewals period.

Note: in most cases the BAU renewals period runs from 06/04/CY to 31/07/CY.

If you are working the case during the BAU renewals period

Note: Stopping Tax Credits In Year Finalisation is paused during the BAU renewals period. This is to prevent the customer receiving both BAU S17 for PY and an IYS17 for UY at the same time and to avoid confusion.

  • set a clerical BF of the day after 1SD
  • make a note in case papers that if PY debt identified, a TC33 is not to be completed until after UY finalisation
  • take no further action.

If you are working the case outside the BAU renewals period, go to Step 4.

Step 4

Check whether PY has been finalised. For how to do this, use TCM1000547.

If PY has been finalised, go to Step 5.

If PY has not been finalised

  • follow BAU PY Finalisation process
  • make a note of any PY debt identified but do not complete a TC33
  • go to Step 5.

Step 5

Check whether the In-Year Specified Date (IYSD) will expire within the next 35 days from todays date. For how to do this, use TCM1000590.

If the IYSD will expire within 35 days of today’s date

  • extend the IYSD to allow 35 days. For how to do this, use TCM1000579
  • go to Step 6.

If the IYSD will not expire within 35 days of today’s date, go to Step 6.

Step 6

Complete a manual TC603U RR Award Review using Notice Creator.

Enter

  • the date range forming the UY period. For how to do this, use TCM1000610
  • the tax credits entitlement for the UY period. For how to do this, use TCM1000089
  • the amount of tax credits paid during the UY period. For how to do this, use TCM1000289
  • any income figures held on RTI
  • customer employment, child and childcare circumstances
  • print off two copies
  • go to Step 7.

Step 7

Complete a manual TC603 UD in SEES

  • print off two copies of the TC603 UD
  • print a copy of the TC603 UD Notes
  • Go to Step 8.

Step 8

Check whether the claim is a cross border or overseas family supplement case.

If the claim is a cross border or overseas family supplement case

If the claim is not a cross border or overseas family supplement case, go to Step 9.

Step 9

Issue the TC603U RR, TC603 UD and TC603 UD Notes

If the case is not a cross border or overseas family supplement case

  • issue one copy of the manual TC603U RR, TC603 UD and TC603 UD Notes to the customer’s (or appointees’) address by 2nd class post
  • file one copy of the TC603U RR and TC603 UD with the case papers
  • go to Step 10.

If the case is a cross border or overseas family supplement case

  • issue one copy of the manual TC603U RR, TC603 UD,  TC603 UD Notes and the TC828 to the customer’s (or appointees’) address
  • use 2nd class post if the address is in the United Kingdom and 1st class airmail (weighed at International rate) if the address is outside the United Kingdom
  • file one copy of the TC603U RR and TC603 UD with the case papers
  • go to Step 10.

Note: all customers in a polygamous or polyandrous marriage will be required to give information about their benefits and income in order to finalise the PY and renew the CY award. A declaration must be sent with the In Year S17 Notices for each of the customers in a polygamous or polyandrous marriage to give each the opportunity to sign.

Note: all customers must be given a minimum of 35 days in which to return their Award Declaration. If there is less than 35 days between the date of issue and the 1st Specified Date (1SD), you must amend the IYSD on the TC603 UD to allow 35 days.

Step 10

Record the date of issue of the IYS17 Notices and update Household Notes.

  • access function Manage Finalisation and enter the issue date of the IYS17. For how to do this use TCM1000359
  • update Household Notes with the message TC01 from TCM0174020. For how to do this, use TCM1000001
  • set a clerical BF of 35 days
  • store case papers according to local storage arrangements
  • take no further action.

Step 11

Check Household Notes or the clerical BF run to determine whether a form TC828 or duplicate form TC828 has been returned. For how to do this, use TCM1000067.

If a form TC828 has been returned with other member state benefit details, go to Step 12.

If a form TC828 has not been returned, go to Step 12.

If a form TC828 has been returned but indicates the customer is not in receipt of benefits from another member state

If a form TC828 has not been issued, go to Step 12.

Step 12

Access Function Capture In Year S17 Notice. For how to do this, use TCM1000593.

On the ‘Income/Benefits’ screen

  • amend the details in the relevant fields with the details on the Award Declaration provided by the customer

Note: From April 2014 customers must provide ‘actual’ figures for earned income, taxable social security benefits and benefits in kind when making their Award Declaration. We will no longer accept an estimate for these types of income.

Note: Where the ‘Other Household Income’ total is £300 or less, we treat the income as nil. If it is more than £300, we only take the excess into account.

Note: If there are RTI figures available, these will have been input already onto NTC. If these figures are then replaced by new figures, the status will automatically revert to ‘A’.

  • select ‘Continue’
  • go to Step 13.

Step 13

Check whether the customer has indicated their circumstances are correct on the Award Declaration.

If the customer has indicated that their circumstances are correct on the Award Declaration

  • select the ‘SOC - Yes’ checkbox
  • select ‘Yes’ in the ‘Signature’ checkbox

Note: If the customer has not signed the Award Declaration, you treat it as signed.

  • enter the date the Award Declaration was received in the ‘Received Date’ field
  • select ‘OK’. You will be taken to the ‘Declaration’ screen
  • select ‘Paper’ or ‘Telephone’, as appropriate in the ‘Change Source’ field
  • select ‘Process’ . The claim will be stored
  • update Household Notes with the message TC04 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 17.

If the customer has indicated that their circumstances are not correct on the Award Declaration

  • select the ‘SOC - No’ checkbox
  • select ‘Yes’ in the ‘Signature’ checkbox

Note: If the customer has not signed the Award Declaration, you treat it as signed.

  • enter the date the Award Declaration was received in the ‘Received Date’ field
  • select ‘OK’. You will be taken to the ‘Declaration’ screen
  • select ‘Paper’ or ‘Telephone’, as appropriate in the ‘Change Source’ field
  • select ‘Process’ . The claim will be stored
  • update Household Notes with the message TC04 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 14.

If the customer has not selected either box on the Award Declaration to confirm their circumstances were correct

  • select the ‘SOC - Yes’ checkbox
  • select ‘Yes’ in the ‘Signature’ checkbox

Note: If the customer has not signed the Award Declaration, you treat it as signed.

  • enter the date the Award Declaration was received in the ‘Received Date’ field
  • select ‘OK’. You will be taken to the ‘Declaration’ screen
  • select ‘Paper’ or ‘Telephone’, as appropriate in the ‘Change Source’ field
  • select ‘Process’ . The claim will be stored
  • update Household Notes with the message TC04 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 17.

Step 14

Access the claim through Unfinalised In Year S17 worklist. For how to do this use TCM1000004.

You must attempt to contact the customer by telephone to confirm the Change of Circumstances. For how to do this, use TCM0094080.

If you were able to contact the customer by telephone and were able to confirm the details of the Change of Circumstances

  • apply the Change of Circumstances
  • update Household Notes with the message TC05 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 16.

If you were able to contact the customer by phone but were unable to confirm the details of the Change of Circumstances

  • issue a form TC664IYF to confirm the details of the Change of Circumstances
  • set a BF of 30 days on NTC. For how to do this, use TCM1000008
  • extend the IYSD by 30 days. For how to do this, use TCM1000579
  • update Household Notes with the message TC06 from TCM0174020. For how to do this, use TCM1000001
  • take no further action.

If you were unable to contact the customer by phone

  • issue a form TC664IYF to confirm the details of the Change of Circumstances
  • set a BF of 30 days on NTC. For how to do this, use TCM1000008
  • extend the IYSD by 30 days. For how to do this, use TCM1000579
  • update Household Notes with the message TC06 from TCM0174020. For how to do this, use TCM1000001
  • take no further action.

Step 15

Check Household Notes to determine whether the customer has supplied the required information, for how to do this, use TCM1000001.

If the required information is present in Household Notes, go to Step 16.

If the required information is not present in Household Notes

  • access function Capture In Year S17 Notices. For how to do this, use TCM1000593
  • change SOC box entry from ‘No’ to ‘Yes’
  • update Household Notes with the message TC09 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 17.

Step 16

Apply the Change of Circumstances supplied by the customer and check whether entitlement has now ceased prior to the tax credit stop date. For how to do this, use TCM1000546 and TCM1000615.

If the Change of Circumstances ceases entitlement prior to the tax credit stop 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 TC07 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 1.

If the Change of Circumstances does not cease entitlement prior to the tax credit stop date

  • access function Capture In Year S17 Notices. For how to do this, use TCM1000593
  • change SOC box entry from ‘N’ to ‘Y’
  • update Household Notes with the message TC11 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 17.

If the customer has confirmed that their circumstances are correct

  • access function Capture In Year S17 Notices. For how to do this, use TCM1000593
  • change SOC box entry from ‘N’ to ‘Y’
  • update Household Notes with the message TC10 from TCM0174020. For how to do this, use TCM1000001
  • go to Step 17.

Step 17

Check Household Notes or the clerical BF run to determine whether a form TC828, a duplicate form TC828 has been issued. For how to do this, use TCM1000067.

If a form TC828 or a TC697 has been issued, go to Step 18.

If a form TC828or a TC697 has not been issued, follow the guidance in TCM0380014.

Step 18 {#}

Check Household Notes or the clerical BF run to determine whether a form TC828 or a TC697 has been returned. For how to do this, use TCM1000067.

If a form TC828 has been returned, follow the guidance in TCM0380014.

If a form TC828 has not been returned

  • calculate the earliest date the child referred to in the TC828 can be excluded from. For how to do this use TCM1000045
  • enter a responsibility end date for the child referred to in the TC828. For how to do this, use TCM1000171
  • update Household Notes with the message TC08 from TCM0174020. For how to do this, use TCM1000001
  • follow the guidance in TCM0380014.

If a form TC697 has been issued

  • calculate the earliest date the child referred to in the TC828 can be excluded from. For how to do this use TCM1000045
  • enter a responsibility end date for the child referred to in the TC828. For how to do this, use TCM1000171
  • update Household Notes with the message TC08 from TCM0174020. For how to do this, use TCM1000001
  • follow the guidance in TCM0380014.