Manual Calculation Of A WTC / CTC Claim Requiring Backdating To An Earlier Date (AG)

• Yes, follow the guidance in Amend Effective Date
   
• No, go to step 2

• If there is no Compliance activity, or Compliance do not require the claim, has a Complex Case signal displayed?

• Yes

• Use Function VIEW HOUSEHOLD NOTES to check which Complex Case Team to transfer the work to

• Send the backdating request to the relevant team

• Take no further action

• No

• Go to step 3

• Make a note of this date on the Calculation Sheet ( CS2)
   
• Take a copy of the SEES Calculation stencil ( SEES 1). This stencil will enable you to enter and calculate the correct entitlement using the SEES Tax Credits Entitlement Calculator
   
• Use Function VIEW AWARD
   
• Go the Select Award screen
   
• Click on the latest award version of the household and tax year award period you are calculating backdating for, to highlight it
   
• Click on the [OK] button. You will be taken to the Award Summary screen
   
• Click on the [View Calculation] button. You will be taken to the View Calculation screen
   
• Click on the [View Elements] button. You will be taken to the View Elements screen
   
• Establish the earliest entitlement start date from the Ent Per Start column and enter this date on the SEES 1 in the ‘Elements awarded at Actual Entitlement start date’ box and on the CS2 in the ‘Actual Entitlement start date’ box
   
• Complete the 'Tax Year Period' box and the claimant’s name and NINO(s) on the SEES 1
   
• Enter details of all of the elements awarded from the Element column in the ‘Elements awarded at Actual Entitlement start date’ box on the SEES 1
   
• Check and enter how many elements are paid for each of the following on the SEES 1

• Child

• Young Person

• Disabled Child

• Severe Disability Child / Young Person

• 50 + / 50+ (30 hour)

• If a childcare element is payable, click on the [View Childcare] button and enter the weekly costs on the SEES 1

Then

• Go to step 4

• Follow the guidance in Entitlement and the information on a summary desk aid on element eligibility for awarded claims to help you. The desk aid is available on the Tax Credits Roadmap on the Intranet. Access the Roadmap, select ‘SEES’ and then select ‘CGL Desk aid for Tax Credits System Eligibility Rules’

Using the information you have already recorded on the SEES 1, confirm

• Whether the claimant's circumstances and the elements payable on their actual entitlement date were the same as their new entitlement start date

And

• Whether the claimant’s circumstances have varied in the period between the new entitlement start date and the actual entitlement date

Then

• Enter details of the dates of any change and the elements applicable at these dates in the 'Elements Awarded CoC' boxes on the SEES 1

Once you have obtained the necessary information to make the calculation

• Go to step 5

Note: If the period you are backdating entitlement to crosses tax years, you must complete a separate CS2 for each tax year

For example

Actual entitlement start date is 04/09/2004

New entitlement start date is 04/06/2003

Calculation 1 = 04/06/2003 to 05/04/2004

Calculation 2 = 06/04/2004 to 03/09/2004

• Enter the claimant’s NINO in the Key Entry Data screen
   
• Click on the [OK] button
   
• Click on the latest claim version of the household and tax year you are calculating backdating for, to highlight it
   
• Click on the [OK] button and then go to the Income screen
   
• Enter the total PY income for the household, for the tax year period which is being calculated in the 'Latest Total PY Income' box on the SEES 1
   
• If CY income is present and is not all at status [S], enter this income in the 'Latest Total CY Income' box on the SEES 1

Note: Enter this income amount as well as the PY income amount, not instead of it

• Go to the Payment screen and check the Payment Nomination and Frequency field to establish which claimant has been nominated to receive CTC and / or WTC
   
• Enter details of who has been nominated to receive the CTC and / or WTC on the CS2
   
• Click on the [VH] button on the toolbar menu. You will be taken to the View Application History screen
   
• Click on the [Ch] button on the toolbar menu, You will be taken to the Children screen
   
• On form TC648 make a note of the date of birth and the date of responsibility of any children included on the claim
   
• Select 'History' on the toolbar menu
   
• Select 'Responsibility' from the options available
   
• On the form TC648, make a note of the date in the Include From field that corresponds to the responsibility of any children included on the claim

Then

• Go to step 6

• Select the year from the drop down menu

Note: Separate calculations must be made for each tax year

• Click on the [Enter details of elements awarded] button
   
• Using the details entered on the SEES 1

• Enter the correct entitlement start date in the Effective Date Of Claim / CoC’s field

Note: You cannot use an entitlement start date that falls within a period when the claimant was part of a different household. Use the date the current household began as the entitlement start date and continue with your calculation

• Complete the Latest Total PY income and, if applicable the Latest Total CY Income field(s)

• Enter details of the elements the claimant is entitled to

• Where the claimant has had any change of circumstances during the period which affected the entitlement, click on the [Add CoC's] button and enter the effective date of the change and amend the entries to reflect the changes

• Use the Child Dates Ready Reckoner to enter the dates of any children included on the claim. This will calculate the dates of changes to child(ren) details. For example, no longer qualifying for Baby Element or Childcare Element

• Repeat for any further dated change

Note: If the period of entitlement for the off system calculation does not run to the end of the tax year 05/04/XX, enter a change of circumstances and remove the entitlement elements using the end date of the actual entitlement start date

For example

Actual entitlement start date is 04/09/2004

New entitlement start date is 04/06/2003

Calculation period 1 = 04/06/2003 to 05/04/2004

Calculation period 2 = 06/04/2004 to 03/09/2004

When making calculation period 2, you would need to enter a change of circumstances using a start date of 04/09/2004, the first day of no entitlement

Once all the relevant entries have been made

• Click on the [Calc] button

• If the amount is below the de minimus amount, go to step 10

For example

Backdating period is 03/04/05 - 30/06/05

03/04/05 - 05/04/05 (2 days due) for tax year 04/05 calculated at £24.00

06/04/05 - 30/06/05 due for tax year 05/06 calculated at £450.00

Payment due for the 04/05 award will not be paid due to this being below the de minimus amount

• If the amount is above the de minimus amount, go to step 7

• The total number of days in the entitlement period
   
• The total amount of CTC calculated due (A)
   
• The total amount of WTC calculated due (B)
   
• The total amount of tax credits calculated (C)
   
• Click on Print, select 'Yes' for Elements Awarded and View Calculation
   
• Click on Print Page(s)

Then

• Use Function VIEW HOUSEHOLD NOTES
   
• Enter the claimant’s NINO in the Key Entry Data screen
   
• Click on the [OK] button
   
• Check the entries to see whether a cashcheque has already been issued due to an off system calculation for backdating

• If a cashcheque has already been issued, reduce the total amount of tax credits owed, by the amount that has already been paid for. Enter the total cashcheques paid on the CS2 in column (D)

• If no cashcheque has been issued. Enter Nil on the CS2

Are you calculating backdating for a refugee?

• No, go to step 9

• Yes, go to step 8

• Enter the amount of NASS or Asylum Support Payments at step E on the CS2

• After 14 June 2007 IS / JSA will not offset any NASS or Asylum Support payments so these will need to be deducted from the overall tax credit amount owed that has been calculated

Then

• Go to step 9

• Go to the Select Award screen where there will be a list of barcode reference numbers

• Enter the barcode reference number for Version 1 of the relevant award you are calculating arrears for onto the CS2

Note: There may be several Version 1s displayed, you should pick the one related to the award period you are looking at. If there is only 1 version, there will be no barcode reference number available because you will not be taken to the Select Award screen. In this case, enter the following, ‘Only 1 version in View Award barcode not available’ on the CS2

• Enter the following on the CS2

• The actual entitlement start date that you have already entered on the SEES 1

• The new entitlement start date that you have established as the date the claimant should have been entitled from

• Repeat each step for each tax year period you are calculating arrears for

Then

• Go to step 10

• Follow the guidance in Healthy Start Vouchers

• If there is entitlement to Healthy Start vouchers

• Complete the Manual Voucher – BDP Request stencil and pass this to your team leader
   
• If the amount due if below the de minimus amount, go to step 12

Otherwise

• Go to step 1 1

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

• If there is no entitlement to Healthy Start vouchers, go to step 1 1

• Double click on the appropriate Shortcut icon on your Desktop. This will bring up the Front Sheet that needs completing
   
• Complete all boxes on the form. If only a single claimant household, then claimant 2 details should be left blank
   
• If you are entering another record, click on the Add Record tab. This will save the record you have just entered and clear the form for you to enter another record

When you have finished entering all the details

• Click on the Exit Database tab. This will save the record you have just entered and take you out of the database

Then

• Go to step 12

Notes:

1. A separate database entry will need to be made for each tax year you have calculated

2. Three databases exist, one is for cases which fall into the general backdating category, one for claims which have been made through the DWP / DSD Fast Track route, the other for refugees

‘TCMZ CTC or WTC or CTC/WTC (enter as appropriate) backdated to DD/MM/YY on DD/MM/YY’

• Then, enter the appropriate reason, for example

‘TCMZ Clmt 1/Clmt 2 (enter as appropriate and enter claimant’s Name) requested backdating to date end of IS/JSA/ESA entitlement DD/MM/YY’

‘TCMZ Refugee Referral To PFA, Claimant (enter Name & NINO)’

• Then, include the detail of the calculations made. For example, if a calculation of the amount of tax credits due has been completed, select the ‘Payments’ category and enter the following, as appropriate

‘TCMZ MAN PYT of backdated arrears of CTC £xx.xx paid to (enter nominated claimant’s name and NINO) for the period __/__/__ to __/__/__ by on DD/MM/YY’

‘TCMZ MAN PYT of backdated arrears of WTC £xx.xx paid to (enter nominated claimant’s name and NINO) for the period __/__/__ to __/__/__ by on DD/MM/YY’

‘TCMZ No backdating arrears paid as NASS payments exceed tax credit entitlement’

TCMZ No backdating arrears paid as amount due is below the de minimus amount’

Notes:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Note: You will need to make separate entries if you have calculated entitlement across more than one tax year

Then

• Go to step 13

Then

• Go to step 1 4

• TC835 explains that we can backdate but not to the requested date as already had maximum of 3 months backdating-amounts owing can also be completed
   
• TC835A explains the decision made to backdate and amounts owing to customer

Where appropriate, issue letter TC835DM to the claimant to advise them they are not entitled to a manual payment for PY when the total award entitlement due falls below the de minimus amount. Go to step 1 5

• Are you calculating backdating for a refugee?

• No

• Take no further action

• Yes

• Only issue the TC835 or the TC835DM if the claimant has specifically requested backdating
   

• Go to step 1 5

Note: Repeat this step if more than one letter TC835 needs to be completed due to the calculation of arrears across tax years or different CTC / WTC recipients

'TCMZ TC835DM sent to claimant on DD/MM/YYYY by (enter PI number) on DD/MM/YYYY'

Note:

You must follow the guidance in How To Correctly Complete Application And Household Notes when you record the note

And also

Follow the guidance in Maintain Household Notes

Then

• Go to step 16