Complex To Non-Complex Change Of Circumstances (AG)

• Determine if there is any compliance activity on the claim. Follow the guidance in Identifying Compliance Activity

• Is no compliance activity, determine the reason for the change of circumstances, from the following, then go to step 2

• One of the claimants in a polygamous marriage / polyandrous marriage case, has died

• There has been a family break up in a polygamous marriage / polyandrous marriage case

Note: This instruction will apply even if there are more than 2 claimants remaining in the family

• A child or young person in a family of 19 children becomes no longer eligible for Child Tax Credit ( CTC)
   
• Income-related Employment and Support Allowance ( ESA) has ended for a tax credits claimant who is also receiving Working Tax Credit ( WTC)
   
• A tax credits claimant receiving income-related ESA and WTC has become ineligible for WTC
   
• A claimant’s immigration status changes resulting in entitlement to both WTC and CTC

• A claimant (in a childless 2 claimant family), serving a custodial sentence of more than 12 months, has been released from prison

• A change in residency or employment involving movement between Member States of the European Economic Area ( EEA) has resulted in the United Kingdom ( UK) becoming competent to pay CTC at the full rate, without offset

• There are now 18 children or fewer in the family

Note: If there are now 18 children or fewer in the family because one of the children has died, contact Business Helpdesk through your Technical Advice Line Liaison Officer for further guidance before you go to step 3

• The claimant has been released from prison
   
• Income-related ESA has ended for a tax credits claimant who is also receiving WTC
   
• WTC eligibility has ended for a tax credits claimant who is also receiving income-related ESA

Or

• The claimant’s immigration status has changed

• Take a screen print of each screen

And

• Go to step 3

• The UK is now competent to pay family benefits

• Take a screen print of each screen

• Locate the most recent manual calculation screen print from the casepapers held in manual BF

And

• Go to step 4

• One of the claimants in a polygamous / polyandrous marriage, has died

Or

• There has been a family break up in a polygamous / polyandrous marriage

• Go to step 5

• Enter details (taken from the screen prints) of the claimant’s entitlement, from the effective date of the claim. Follow the guidance in the SEES Menu System Help
   
• Include the change of circumstance from the effective date of the change

And

• Take 2 screen prints of the calculation

Then

• Go to step 4

• Inform them that their future payments of tax credits will be made by the computer

And

• Ask for confirmation of up to date bank account details

Follow the guidance in Contacting The Claimant. If

• The claimant provides bank account details, go to step 5

• The claimant does not provide bank account details, follow the guidance in No Account Details, then go to step 5

• Note the ‘Paid up to date’ recorded on the proforma
   
• Do not make any further manual payments to the claimant(s)

If the change of circumstance is

• The death of a claimant in a polygamous marriage / polyandrous marriage case, go to step 6

• A family break up in a polygamous marriage / polyandrous marriage case, go to step 7

• A cross border / family supplement case, go to step 8

• Any other change, go to step 9

• Captured on the computer

• Follow the guidance in Death of A Claimant Referred To Priority 1 Team

And

• Complete a Priority One Change Of Circumstance stencil and send it to the P1 Team by a WAM referral

• Enter the following message in the Additional Information field

‘TCMZ Complex Case – P1 Team only required to notify CBO. European Economic Area Team will take all other action’

Then

• Go to step 21

• Not captured on the computer

• Use Function MAINTAIN HOUSEHOLD NOTES to enter the following message

‘TCMZ Claimant (name) died DD-MM-YY. Household ended’

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

• Follow the guidance in Death of A Claimant Referred To Priority 1 Team

But

• Select ‘Household Breakdown’ from the Household End reasons in the drop down menu in the Household Details screen

Then

• Complete a Priority One Change Of Circumstance stencil and send it to the P1 Team by a WAM referral

• Enter the following message in the Additional Information field

‘TCMZ Complex Case – P1 Team only required to notify CBO. European Economic Area Team will take all other action’

And then

• Go to step 20

Note: Because you have entered details of a family breakdown, an incorrect automated notice will be produced. As the Manual Correspondence signal is set, you will receive this notice from the team working the ‘Manual Correspondence’ Work List and the work

• Follow the guidance in Family Break Up

Then

• Go to step 19

• Make a note of the offset on form TC648

And then

• Go to step 9

• Enter one of the following messages as appropriate to the claim

‘TCMZ Claim no longer complex - less than 19 children’

‘TCMZ Claim no longer complex – ESA (IR) ended for claimant also receiving WTC’

‘TCMZ Claim no longer complex – WTC eligibility ended for claimant receiving ESA (IR)’

‘TCMZ Claim no longer complex – immigration status changed’

‘TCMZ Claim no longer complex – Clt entitled to 2nd adult element from DD-MM-YY’ (enter the date as date of release from prison)
 
‘TCMZ Claim no longer cross border / family supplement case – UK competent’

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 10

• Select the Change of Circumstances option
   
• Go to the Household Details screen
   
• Enter the family end date in the Household End Date field (use the effective date of the change of circumstances as the family end date)
   
• Select ‘Household Breakdown’ from the Household End Reason drop down menu
   
• Click on the [OK] button. You will be taken to the Amend Finish screen

• The date the notification of the change was received
   
• The source of the change (Paper)
   
• If the notification of the change of circumstances is signed
   
• The reason for the change (Change of circumstances)
   
• Click on the [OK] button

Note: The changes you have made in this function will not be applied until you complete the Amend Finish screen and click on the [OK] button

Note: The Received Date field will always default to today’s date. You must enter the date the change of circumstances was notified, not the date the change is actioned. If there is more than one notification date then the earliest notification date must be entered

Note: If there is more than one source of change, you must enter the original source, which started the process. For example, if you are processing a paper correspondence change of circumstances and a worklist item, and the paper correspondence stamp date is earlier

• If the message ‘S18 Refinalisation Rules – Potential inappropriate refinalisation for CCYY–CCYY. If you have the authority to refinalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays

• The changes you are making will re-finalise the claim, follow the guidance in Establish If A Change Can Be Made before making any changes

Then, if you can make the change

• Click on the [OK] button on the message
   
• Go to step 12

• If the message ‘S18 Refinalisation Rules – Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays

• You will not be able to make the change because the PY actual income is required, follow the guidance in Establish If A Change Can Be Made before making any changes

Then, if you can make the change

• Click on the [OK] button on the message
   
• Go to step 12

• If the message ‘S18 Refinalisation Rules – You do not have the authority to refinalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays

• The changes you are making will refinalise the claim
   
• Click on the [Cancel] button. You will be taken to the Amend Application Details screen
   
• Click on the [Cancel] button
   
• When the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, click on the [Yes] button
   
• Pass the case to a Level 2 User or your manager. For more information on Level 1 and Level 2 users, see Level 1 and Level 2 User Roles
   
• Take no further action

• If none of the above messages display, go to step 12

• Enter the claim details from the screen prints you took at step 2

Note: Remember to capture the change of circumstances, if appropriate. For example, omit the correct child’s details if a child has left the family

• Enter the bank details you obtained from the claimant at step 4

• If you were unable to obtain bank details from the claimant leave the Bank Details field blank

• In the Summary Information screen

• Enter the Effective Date as one day after the family end date you have entered on the Household Details screen. in the complex claim

• Enter the Received Date as 2 days after the family end date you have entered on the Household Details screen, in the complex claim

Note: This will prevent automatic backdating of the claim which would result in an overpayment

• Click on the [Store] button to prevent the claim from being processed

Then

• Go to step 13

• Select the Change of Circumstances option and go to the Free Format screen
   
• Enter the following message in the Free Format screen

‘TCMZ Claim no longer complex but requires manual correspondence until renewal completed’

Click the [OK] button

And

• Go to step 14

• Go to the Summary Information screen
   
• Enter the following message in the Application Notes field

‘TCMZ Claim no longer complex but renewal must be done manually – pass all correspondence to the European Economic Area Team [MU286113] as appropriate). Do not remove manual correspondence signal’

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 Application Notes

• Click on the [OK] button

And then

• Click on the [Proceed] button and go to step 15

• Select ‘Household’ from the toolbar menu
   
• Select ‘Details’ from the options available

And

• Tick the Manual Correspondence checkbox to set the Manual Correspondence signal

Note: Do not tick the Complex Case checkbox

Then

• Click on the [OK] button. You will be taken to the Amend Finish screen

• The date the notification of the change was received
   
• The source of the change (Paper)
   
• If the notification of the change of circumstances is signed
   
• The reason for the change (Change of circumstances)

Then

• Click on the [OK] button

Notes:

1. The changes you have made in this function will not be applied until you complete the Amend Finish screen and click on the [OK] button

2. The Received Date field will always default to today’s date. You must enter the date the change of circumstances was notified, not the date the change is actioned. If there is more than one notification date then the earliest notification date must be entered

3. If there is more than one source of change, you must enter the original source, which started the process. For example, if you are processing a paper correspondence change of circumstances and a worklist item, and the paper correspondence stamp date is earlier

• Select ‘Change of Circumstances’ from the options available

Then

• Select ‘Applicant 1’ from the toolbar menu
   
• Select ‘View’ from the options available
   
• Select ‘Apply Free Format’. You will be taken to the Free Format screen
   
• Click on the [Applied] button. You will be taken back to the Applicant 1 screen
   
• Click on the [OK] button

And

• Go to step 18

• Select ‘Unprocessed Change Of Circumstances’ Work List from the drop down menu for the Work List type field
   
• Select the office or unit you want from the drop down list for the Management Unit field, if the one you want is not already displayed in this field. The screen will be redisplayed with the entries currently on the Work List
   
• Click on the work item you want to work to highlight it
   
• Click on the [Delete] button. The work item will be deleted

Then

• Go to step 19

• If you are dealing with a family break up in a polygamous marriage / polyandrous marriage

• Issue the notice relating to the family break up manually

Then

• Go to step 20

• If you are dealing with any other change of circumstances

• File the notice relating to the claim you have ended in the casepapers. Do not issue it to the claimant

You will also receive an automated award notice for the ‘new’ claim you have captured at step 12. Details on this notice will be incorrect because they will not reflect entitlement for the full tax credit year

• Extract details from the manual calculation print to include in a manual award notice so that the claimant is notified of the correct revised entitlement for the whole tax year

• If the claim was a cross border / family supplement case

• Notify the claimant how much has been deducted from the award of CTC because of family benefits paid by the other Member State ( OMS)

• Send the notices by

• 2nd class mail for claimants living in the UK

• 1st class airmail (weighed at international rate) for claimants living outside the UK, including Crown servants with British Forces Post Office (BFPO) addresses

Then

• Go to step 20

• Select ‘Manual Correspondence’ Work List from the drop down menu for the Work List type field
   
• Select the office or unit you want from the drop down list for the Management Unit field, if the one you want is not already displayed in this field. The screen will be redisplayed with the entries currently on the Work List
   
• Click on the work item you want to work to highlight it

• Click on the [Delete] button. The work item will be deleted

Then

• Go to step 21

• Continue to hold the casepapers relating to the complex case until you have finalised the claim manually at year end

Note: This is because the computer does not hold the correct information for the claimant(s) for the whole tax year and automated notices will be wrong

If you have captured a ‘new’ claim

• Continue to issue all correspondence manually until you have completed manual finalisation

Note: The Manual Correspondence signal must not be lifted until manual finalisation is completed