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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to complete a Manual Payment Calculation Sheet on a post award Subject To Immigration Control (STIC) complex case

Version 1.0

Changes to previous version - new guidance.

Step 1

Calculate and schedule the manual payments

Step 2

Enter the following information in ‘Section 1 - Claimant details’ of the ‘Calculation sheet’

  • name and NINO of customer 1 and 2 in the respective fields
  • check the tax credits computer for the person elected to receive the WTC and select ‘Yes’ or ‘No’ from the dropdown list for the ‘Nominated recipient’
  • select WTC for the ‘Nominated credit’
  • go to .

Step 3

Complete ‘Section 2 - Establish Entitlement Period’ of the ‘Calculation sheet’ as follows

  • follow the guidance at step 13 of TCM0284385 to calculate the entitlement to WTC, less second adult element, using the SEES Tax Credits Entitlement Calculator
  • the ‘Award Start Date’ will always be 06/04/2010 or later as the earliest effective date of this change is 06/04/2010
  • the ‘Award End Date’ will be the last date of the tax year which you are paying manually or earlier if the award ends before this date
  • in the ‘Entitlement Periods’ table enter details of all the entitlement periods and the respective WTC award amounts (less second adult element) shown on the SEES Tax Credits Entitlement Calculator. Check that the totals shown on the ‘Entitlement Periods’ table and SEES Tax Credits Entitlement Calculator match
  • go to .

Step 4

Complete ‘Section 3 - Payments - Entitlement to next HH pay day’ of the ‘Calculation sheet’ as follows

  • follow the guidance at step 8 and step 9 of TCM0220080 to determine the household pay day and the date of the next household pay day and enter this information in the ‘Household pay day’ and the ‘Date of Next HH pay day’ fields, respectively

Note: When determining the next household pay day, use the actual pay frequency shown on the tax credits computer even though you may be making manual payments four-weekly.

  • follow the guidance at step 10 of TCM0220080 and calculate using the SEES Tax Credits Entitlement Calculator the amount of WTC that the customer is entitled to, less the second adult element, up to the next household pay day and enter this amount in the ‘WTC’ field
  • follow the guidance at steps 11 to 13 of TCM0220080 to determine if any adjustments to the award need to be made and select the appropriate ‘Category of Award’ from the dropdown list

Note: If the claim you’re working already has a recovery on it, you’ll need to continue recovering at the appropriate rate until the end of the award period or until the overpayment has been fully recovered.

Note: If there’s still an outstanding amount to recover at the end of the current tax year, you must continue to recover the remainder from the following tax year.

  • go to .

Step 5

Complete ‘Section 3 - Payments - System Payments up to (today’s date)’ of the ‘Calculation sheet’ as follows

  • follow the guidance at step 14 and step 15 of TCM0220080 and record any WTC system payments that the customer has already received

Note: In the ‘WTC paid direct’ field, enter only the amount of WTC (less second adult element) that should have been paid (figure E on the ‘STIC calculation sheet’). Otherwise, you will end up offsetting an amount equivalent to the second adult element which may be remitted anyway.

Note: If any amount of the second adult element already paid or any other WTC amount is to be recovered this should be done as either an in-year or cross-year or direct recovery at the appropriate recovery rate and not as an offset.

  • go to .

Step 6

Complete ‘Section 3 - Still to be paid up to (next HH pay day)’ of the ‘Calculation sheet’ as follows

  • leave this field blank because no more system payments will be made in this period due to the payment suspension being set
  • go to .

Step 7

Complete ‘Section 3 - Manual Payments issued so far’ of the ‘Calculation sheet’ as follows

  • follow the guidance at step 16 and step 17 of TCM0220080 and record any WTC manual payments that the customer has already received

Note: In the ‘WTC paid direct’ field, enter only the amount of WTC (less second adult element) that should have been paid (figure E on the ‘STIC calculation sheet’). Otherwise, you will end up offsetting an amount equivalent to the second adult element which may be remitted anyway.

  • go to .

Step 8

Complete ‘Section 3 - still to be paid after (next HH pay day)’ of the ‘Calculation sheet’ as follows

  • leave this field blank because no more system payments will be made in this period due to the payment suspension being set
  • go to .

Step 9

Check the amount next to ‘WTC’ under ‘Balance to Pay’ at ‘Section 4 - Calculation of arrears’

If the amount is negative, this indicates that the customer has received their full WTC entitlement and no further payments are due

  • print off a copy of the completed ‘Manual Payment Calculation Sheet’ and retain it in the casepapers
  • take no further action.

If the amount is positive, this indicates that the customer is entitled to further manual payments of WTC

  • print off a copy of the completed ‘Manual Payment Calculation Sheet’ and retain it in the case papers
  • go to .

Step 10

Complete the ‘Schedule of Payments’ sheet as follows

  • enter the name and NINO of both customers in the respective fields
  • enter WTC in the ‘Nominated credit’ field for both customers
  • select ‘Suspended payments’ from the options in the ‘Reason for issue’ field
  • follow the guidance at step 20 of TCM0220080 to complete the remainder of the ‘Schedule of Payments’ sheet
  • go to .

Step 11

Calculate the amount of the first or only WTC manual payment as follows

  • add the amount of any arrears and the amount of any rounding payment recorded at ‘Section 4 - Calculation of arrears’ of the ‘Calculation sheet’
  • open the ‘Schedule of Payments’ sheet
  • enter the total amount of arrears and rounding payment in the first row under the ‘WTC’ column
  • go to .

Step 12

Check your manual payment calculations are correct. Compare and check that the following figures all match

  • ‘totals’ on the ‘Schedule of Payments’ sheet
  • sum of arrears plus balance to pay
  • figure G on the ‘STIC calculation sheet’.

If all the figures match, print off a copy of the completed ‘Schedule of Payments’ sheet and retain it in the case papers.

If the figures don’t match, re-check your calculations.