Consider PY-1 Or Earlier Changes (AG)

To deal with changes to PY-1 or earlier awards, consider steps 1 - 22 below. The guide is presented as follows

Initial action	Steps 1 - 7
Consider action you can take	Steps 8 - 12
Determine if official error has occurred	Steps 13 - 14
Dealing with an underpayment if official error has occurred	Steps 15 - 16
Dealing with changes that cannot be processed	Steps 17 - 19
Consider action required for later years	Step 20
Update Household Notes	Step 21
Action for TALLO	Step 22

Initial action

1	Note: Before you follow this guidance, follow the guidance in Action To Take Before Processing A Claim Or Work Item If you are told to return to this guidance, use Function MAINTAIN HOUSEHOLD NOTES to check whether the change has already been made to all the relevant years or the change has previously been considered If you are dealing with an expired action date or expired BF date, go to step 5 If the change has been made to all the relevant years or the change has previously been considered In Function MAINTAIN HOUSEHOLD NOTES, select the ‘Renewals & Reminders’ category to record the following, as appropriate ‘ NZ01 – Change of circumstances [insert details of change] already considered and/or actioned’ 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 Send any correspondence to storage. Follow the guidance in Preparing And Sending Documents For Storage Take no further action If the change has not already been made to all the relevant years or the change has not previously been considered, in Function MAINTAIN HOUSEHOLD NOTES, check if the case is a Disputed Overpayment relevant to the applicable PY-X award year, a Complaint or an Appeal case If the case is a Disputed Overpayment relevant to the applicable PY-X award year, a Complaint or an Appeal and you are working in the area that deals with the relevant case, go to step 2 If the case is a Disputed Overpayment relevant to the applicable PY-X award year, a Complaint or an Appeal and you are not working in the area that deals with the relevant case If you are dealing with a work list item, use Function MAINTAIN WORKLIST to set an action date of 26/05/2009 If you are not dealing with a work list item, set a clerical BF date of 26/05/2009 Then, whether you are working a work list item or not Complete form TC648 with the claimants details, the relevant changes, make a note of the action date or clerical BF date, whichever is appropriate and, if you are working a work list item the details on the work list Pass the form TC648 and any relevant paperwork to the relevant area that deals with the case Take no further action If the case is not a Disputed Overpayment relevant to the applicable PY-X award year, a Complaint or an Appeal, go to step 2
2	Use Function VIEW S17 DETAILS and go to the Current Position screen for the relevant PY award year to check if the status is finalised If the status is not ‘Finalised Actual’, ‘Auto Renewed’ or ‘Managed Finalised’ and You are working a work list item, use Function MAINTAIN WORKLIST to set an action date of 29/05/2009 You are not working a work list item, set a clerical BF date of 29/05/2009 Then, whether you are working a work list item or not Refer the case to your Technical Advice Line Liaison Officer (TALLO) to identify the problem, if they can’t, for them to refer to the Technical Advice Line (TAL) Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following ‘ NZ02 - Cannot amend S18 decision sent to TAL (Technical Advice Line)’ 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 Go to step 20 If the status is ‘Finalised Actual’, ‘Auto Renewed’ or ‘Managed Finalised’ and You are dealing with an expired action date and you are waiting to establish the full details of the change and / or the year the change relates to, go to step 5 Otherwise Go to step 3
3	Establish what change has been reported using the information provided and the earliest year the change(s) relates to Note: Before deciding which tax year the change relates to you must apply the normal backdating rules If the claimant reports the following change only Amending the CTC and / or WTC nomination and / or frequency of payments Change of address Change of bank details Correcting or changing the claimants name Make the change in CY. Follow the appropriate guidance in Changes Take no further action If the claimant reports any other change, do you have all the details of the change and the years it relates to Yes, go to step 7 No, use Function VIEW HOUSEHOLD NOTES to see if you can find this information If you find the information, go to step 7 If you cannot find the information, go to step 4
4	Contact the claimant to obtain the details of the change and the year(s) it relates to. Follow the guidance in Contacting The Claimant If you obtain the information and it relates to a household breakdown, go to step 6 If you obtain the information and it does not relate to a household breakdown, go to step 7 If you do not obtain the information Send form TC664 to the claimant asking for the information Then If you are dealing with a work list item, use Function MAINTAIN WORKLIST to Set an action date of 14 days in the future Transfer the work item to the ‘Establish if a change can be made BF’ MU. See the MU Table for the correct MU number. Make sure you tick the Retained checkbox after entering the action date Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record either or both of the following, as appropriate ‘ NZ03 - TC664 issued for full CoC details. CoC’s not yet dealt with. (Enter clmt’s name) and (State what details are missing). (Include BF date)’ ‘ NZ04 - CoC not yet dealt with. Clmt (insert name) has provided the following details (State the details of change given so far). (Include date notified and the date(s) the change actually occurred if known)’ 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 Take no further action If you are not dealing with a work list item Set a clerical BF date of 14 days in the future Complete form TC648 with the claimant’s details Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record either or both of the following, as appropriate ‘ NZ05 - TC664 issued for full CoC details. CoC’s not yet dealt with. (Enter clmt’s name) and (State what details are missing). (Include BF date)’ ‘ NZ06 - CoC not yet dealt with. Clmt (insert name) has provided the following details (State the details of change given so far). (Include date notified and the date(s) the change actually occurred if known)’ 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 Take no further action
5	Use Function VIEW HOUSEHOLD NOTES to check whether the full details of the change and / or the year the change relates to has been recorded. If the information Has been recorded, go to step 7 Has not been recorded, check if a reminder has been issued If a reminder has not been issued, issue form TC664R to the claimant If you are dealing with a work list item, use Function MAINTAIN WORKLIST to set an action date of 14 days in the future. Make sure you tick the Retained checkbox after entering the action date. Take no further action If you are not dealing with a work list item Set a clerical BF date of 14 days in the future Complete form TC648 with the claimant’s details Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following ‘ NZ07 - TC664R issued. (Include BF date)’ 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 Take no further action If a reminder has been issued and you are dealing with an expired action date where there is more than one change - is one of the change of circumstances relevant to a death Yes, go to step 7 No, go to step 6
6	If the change of circumstances Relates to a Household Breakdown and you have enough information to apply the change to a later year, for example you are considering the PY-2 year and do not have enough information to apply the change, but you do have enough information to apply the change in PY-1, go to step 20 Does not relate to a household breakdown or you do not have enough information to apply the household breakdown to a later year Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following ‘ NZ08 – Change could not be processed no reply to TC664R. (Include details of change)’ 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 Link form TC648 together with any other documents and send them to remote storage. Follow the guidance in Preparing And Sending Documents For Storage If you are dealing with an unprocessed Change Of Circumstances work item, use Function MAINTAIN WORKLIST to delete it Take no further action
7	Is the change either changing a claimant or child's date of birth or is it the death of a claimant or child No and it does not affect CY, go to step 8 No and it does affect CY Apply the change to CY, if this has not already been done. Follow the appropriate guidance in Changes Note: You must consider the normal backdating rules whenever you make a change to CY Then Go to step 8 Yes and you are Amending a child's date of birth for CY Or Amending the date in the Include From Date field in CY Apply the CY change. Follow the appropriate guidance in Changes Note: If the child's date of birth is not in CY, as long as the date in the Include From Date field is in CY you can make the change because the change will not affect any previous year. You can view the date in the Include From Date field by using Function AMEND APPLICATION, choosing the Correction option and selecting 'History Details' on the Child Details screen Take no further action Dealing with a change to the claimant's date of birth Or Dealing with a change to a child's date of birth for PY or earlier Note: You must not make the change If you are not dealing with a work list item, complete an M1 referral form and send it with the attachments to the team detailed on the referral. Take no further action If you are dealing with a work list item, use Function MAINTAIN WORKLIST to transfer the work item to the 'Mismatches IN' MU. See the MU table for the correct MU number. Take no further action Dealing with the death of a claimant or child Complete a form TC648 and send it with any attachments to the Tax Credits Office (This text has been withheld because of exemptions in the Freedom of Information Act 2000) (This text has been withheld because of exemptions in the Freedom of Information Act 2000) If you are dealing with a work list item, use Function MAINTAIN WORKLIST to transfer the work item to the 'DOD INDICATOR IN' MU. See the MU table for the correct MU number Then Go to step 22

Consider action you can take

8	Use Function VIEW HOUSEHOLD NOTES Is there a message in the Retained Notes field showing that a form TC953, TC954 or TC957D has been sent for the tax year affected, for example ‘TC954, 2004/2005, issued on 28-AUG-07’ No, go to step 10 Yes, go to step 9
9	In Function VIEW HOUSEHOLD NOTES, is there a message beginning with ‘NY’ stating the case has been worked and retrospective action is now complete Yes, go to step 10 No and you are working an S18 retrospective case, go to step 10 No and you are not working an S18 retrospective case Set an action date of 30/05/2009 Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record details of the change and that the change is held pending the relevant form TC953, TC954 or TC957D action 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 Take no further action
10	Use the SEES Tax Credits Entitlement Calculator Enter all the changes in the SEES Tax Credits entitlement calculator to calculate an adjusted award for the relevant PY-1 or earlier year Note: You must make sure that you enter the correct income figure and take into account the longer backdating rules for claimants who qualify for the disability or severe disability elements of WTC or CTC Print a copy and retain it with the cases papers Use Function VIEW AWARD and go to the Award Summary screen for the latest award version for the relevant year to compare the entitlement on the computer with the adjusted PY entitlement on the SEES calculation Make a note of whether the entitlement increases, decreases or remains the same Note: if the entitlement has increased or decreased also note the amount Then, if The claimant has not stated they told us about the change when it originally occurred or as part of their Annual Declaration and the entitlement has increased or remains the same, go to step 12 The claimant has stated they told us about the change when it originally occurred or as part of their Annual Declaration and the entitlement Has increased or decreased, go to step 13 Has stayed the same, go to step 11 The claimant has not stated they told us about the change when it originally occurred or as part of their Annual Declaration and the entitlement has decreased Make a note of the overpayment figure on the ‘Consider PY-1 or Earlier changes’ template. This can be obtained from your manager Go to step 19
11	Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following ‘ NZ09 - Error identified PY-X Changes not applied no impact (state full details of change)’ 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 Complete the ‘Consider PY-1 or Earlier changes’ template for the action you have taken. This can be obtained from your manager Send form TC960 to the claimant if they notified you of the change Note: If the change was not notified by the claimant, do not send the form TC960 Note: When completing the form TC960 for auto renewal cases, the issue date of the final decision notice is the date the Annual Declaration was issued. This can be viewed in Function VIEW S17 DETAILS Go to step 20
12	Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following ‘ NZ19 – Official error not apparent PY-X changes not applied (state full details of change) TC960 sent’ 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 Complete the ‘Consider PY-1 or earlier changes’ template for the action you have taken. This can be obtained from your manager Send form TC960 to the claimant Note: If the change was not notified by the claimant, do not send the form TC960 Note: When completing the form TC960 for auto renewal cases, the issue date of the final decision notice is the date the Annual Declaration was issued. This can be viewed in Function VIEW S17 DETAILS Go to step 20

Determine if official error has occurred

Determine whether the Annual Declaration was captured by telephone, Rapid Data Capture (RDC), manual capture or interview. To do this

Use Function VIEW S17 DETAILS
Go to the Current Position screen for the relevant PY-X year
Click on the [Details] button under the Declarations box. You will be taken to the Declarations screen
Check the Capture Method field to see how the Annual Declaration was captured
Obtain the original record of the Annual Declaration and the records of any changes for the relevant year that are recorded in Function VIEW HOUSEHOLD NOTES between the date the Annual Declaration was received and today’s date

If the Annual Declaration was an auto renewal case

Obtain the records of all the relevant PY-X changes recorded in Function VIEW HOUSEHOLD NOTES

Then

Go to step 14

If the relevant PY-X change was captured by telephone, this indicates that it was captured by Contact Management Application (CMA)

Liaise with your area’s CMA representative to access and read the appropriate telephone call records

Listen to the relevant telephone call or calls to determine if HM Revenue & Customs (HMRC) have made a mistake

Then

Go to step 14

If the relevant PY-X change was captured by RDC, paper or interview

Request the Annual Declaration or correspondence from storage. Follow the guidance in Retrieval Of Casepapers

Then, when you have received the manually captured documents

Go to step 14

Based on the information provided on the relevant Annual Declaration and the change in circumstances received from the claimant, did the claimant tell us about the change when it occurred

Yes and there is an underpayment, go to step 15
Yes and there is an overpayment, go to step 17
No or there is no evidence to support that an error by HMRC has occurred and there is an underpayment, go to step 18
No or there is no evidence to support that an error by HMRC has occurred and there is an overpayment, go to step 19

Dealing with an underpayment if official error has occurred

Would the change result in the disability element or severe disability element for the claimant and / or children being backdated and paid in a period covered by the finalised PY-1 award or earlier

Note: If we have mistakenly removed entitlement to a disability element then this would be an official error. Only refer the case to the Benefits and Credits Technical Team if the claimant qualifies for the additional elements after following the appropriate backdating guidance

Yes, go to step 22 to refer the case to your TALLO who will advise you of the action to take
No, the underpayment has occurred due to an official error. Have you established that the change applies to PY-5 or earlier

Yes, the change applies to PY-5 or earlier, is the change a PY-3 or earlier income change or a PY-2 or earlier childcare change?

Yes, go to step 16

No, apply the change to the relevant year only, as appropriate. Follow the appropriate guidance in Changes

Note: You must apply an end date of 05/04/PYXX for the relevant PY year if entitlement for the change has not already ended

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ11 - OE established PY-X Changes applied (state full details of change)’

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

Complete the ‘Establish if a change can be made’ template for the action you have taken. This can be obtained from your manager

No, the change does not apply to PY-5 or earlier. Does the change include a PY-3 or earlier income change or a PY-2 or earlier childcare change?

Yes, go to step 16

No, apply the change to the relevant year only, as appropriate. Follow the appropriate guidance in Changes

Note: You must apply an end date of 05/04/PYXX for the relevant PY year if entitlement for the change has not already ended

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ11 - OE established PY-X Changes applied (state full details of change)’

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

Complete the ‘Consider PY-1 or Earlier changes’ template for the action you have taken. This can be obtained from your manager

Go to step 20

Complete form TC648 with the following details

The claimant’s details
Using the information from the SEES calculation you did earlier, put a note on the form TC648 stating

‘Please issue a one off manual payment of WTC £XXX.XX, CTC £XXX.XX. For the period XX.XX.XX.PY-X to XX.XX.XX.PY-X. This payment has been calculated off system do not post’

Send the form TC648 to the Manual Payments Team (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Using the information from the SEES calculation you did earlier, complete and send the Manual Award Notice to the claimant
Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ12 – OE established PY-X Changes applied (state full details of change), TC648 referral sent to manual payments for a one off payment of WTC £XXX.XX, CTC £XXX.XX . For the period XX.XX.XX.PY-X to XX.XX.XX.PY-X’

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

Go to step 20

Dealing with changes that cannot be processed

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ13 - HMRC mistake established, PY-X Changes not applied because change results in an overpayment (state full details of change and amount of overpayment)’

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

Complete the ‘Consider PY-1 or Earlier changes’ template for the action you have taken. This can be obtained from your manager
Send form TC960 to the claimant

Note: If the change was not notified by the claimant, do not send the form TC960

Note: When completing form TC960 for auto renewal cases, the issue date of the final decision notice is the date the Annual Declaration was issued. This can be viewed in Function VIEW S17 DETAILS

Go to step 20

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ14 - OE not established PY-X change not applied (state full details of change and amount of underpayment)’

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

Complete the ‘Consider PY-1 or Earlier changes’ template for the action you have taken. This can be obtained from your manager
Send form TC960 to the claimant

Note: If the change was not notified by the claimant, do not send the form TC960

Note: When completing form TC960 for auto renewal cases, the issue date of the final decision notice is the date the Annual Declaration was issued. This can be viewed in Function VIEW S17 DETAILS

Go to step 20

Based on the SEES calculation you did earlier, has PY entitlement decreased by more than £100.00

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)NZ15 – PY-X change not applicable (state full details of change)’

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

Complete the ‘Consider PY-1 or Earlier changes’ template for the action you have taken and record the overpayment figure. This can be obtained from your manager

Send form TC960 to the claimant

Note: If the change was not notified by the claimant, do not send the form TC960

Note: When completing form TC960 for auto renewal cases, the issue date of the final decision notice is the date the Annual Declaration was issued. This can be viewed in Function VIEW S17 DETAILS

Go to step 20

Make a note of the overpayment figure on the ‘Consider PY-1 or earlier changes’ template. This can be obtained from your manager

Use Function VIEW HOUSEHOLD NOTES to establish if the Priority 1 CoC Team are currently working the enquiry

If the team are working the enquiry and you are not dealing with a work list item

Send any correspondence to the Priority 1 CoC Team (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Waterview Park
Washington
Tyne and Wear
NE38 8QG

Go to step 21

If the team are working the enquiry and you are dealing with a work list item, use Function MAINTAIN WORKLIST to transfer the work item to the ‘DOD INDICATOR IN’ MU. See the MU Table for the correct MU number. And then go to step 21

If the team are not working the enquiry, use Function MAINTAIN WORKLIST to set an action date of 02/07/2009 and then go to step 20

Consider action required for later years

If you are working the

PY-1 year, does the change also affect PY

Yes, follow the guidance in Establish If A Change Can Be Made

No

Send any correspondence to storage. Follow the guidance in Preparing And Sending Documents For Storage

If the work item is an unprocessed change of circumstances, use Function MAINTAIN WORKLIST to delete it

If the work item is anything else and has not been cleared, use Function MAINTAIN WORKLIST to set an action date of 01/06/2009

Transfer the work item to the ‘BF’ MU. See your manager for the correct MU number

Refer the case to your TALLO for them to refer to TAL

Take no further action

PY-2 or earlier year, does the change affect any later years

Yes, go back to step 8 to process the next year

No

Send any correspondence to storage. Follow the guidance in Preparing And Sending Documents For Storage

If the work item is an unprocessed change of circumstances, use Function MAINTAIN WORKLIST to delete it

If the work item is anything else and has not been cleared, use Function MAINTAIN WORKLIST to set an action date of 01/06/2009

Transfer the work item to the ‘BF’ MU. See your manager for the correct MU number

Refer the case to your TALLO for them to refer to TAL

Take no further action

Update Household Notes

If you have confirmed that the change is a date of death or a date of birth

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ17 - Change not applied. DOD/DOB (delete as appropriate) referred to the P1 CoC’s Team’

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

Take no further action

Action for TALLO

Send an email (This text has been withheld because of exemptions in the Freedom of Information Act 2000) Give the email the title ‘Establish If A Change Can Be Made’

Enter the following details on the email

Effective date of the tax credits claim

Decision on the tax credits award

Which disability benefit has been claimed or awarded

Which date the disability benefit was claimed or awarded

Who the disability benefit is for

The date the claimant originally notified HMRC that the disability benefit had been claimed

The date the claimant notified HMRC that the disability benefit had been awarded

Then

Complete form TC648 with the claimant’s details
Put a note on form TC648 stating

‘Cannot amend S18 decision refer to B&C Team’

Set a clerical BF date of 25/04/2009
Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘Renewals & Reminders’ category to record the following

‘ NZ18 - Cannot amend S18 decision refer to B&C Team’
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

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