Manual Renewal Payments For Complex Cases (AG)

• The amount the claimant / claimants was due for the Previous Year (PY) award and the amount they were paid together with details of any overpayment or underpayment of Child Tax Credit ( CTC) and / or Working Tax Credit ( WTC)

• The amount of CTC / WTC the claimant / claimants is due for the Current Year (CY) award. This will be nil if the claimant has no entitlement

Check that the form TC648 has been completed correctly with the above information

• If the form TC648 has been completed correctly, go to step 2

• If the form TC648 has not been completed correctly, follow the guidance in Manual Renewal For Complex Cases

• If an underpayment has been recorded, go to step 3

Note: Payments of less than £1 must not be made. Any shortfall will be picked up and dealt with by the computer in due course. Treat as if there is no overpayment

• If an overpayment has been recorded, go to step 6

• If there is no underpayment or overpayment, go to step 13

• When the form R92TC has been authorised, go to step 4

Note: A separate form R92TC will be required for each payee if CTC and / or WTC are paid separately

• ‘TCMZ R92TC XXXXXXX (insert serial number) for £XXX.XX issued to CLMT1 / CLMT2 (specify) for U/P for PY'

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

• Then go to step 13

• If the claimant has an award for CY then you can recover any overpayment by cross year recovery, go to step 11

• If the claimant is not entitled to tax credits for CY, recover the overpayment directly from them, go to step 7

Note: The payments they will have received will have been recorded on the Manual Provisional Payments Proforma

• Explain that the case is complex, has no future entitlement and has an overpayment

And

• Inform them that you need guidance on how to action the case

Note: Business Services will then arrange with Accounting and Payment Service (A&PS) how to action the case manually

Take no further action

• Use the calculation sheet you completed whilst following the guidance and compare the untapered and tapered award amounts in the ‘total’ column. If the figures are

• The same, this is a maximum award and the recovery percentage to be applied is 10%

• Not the same, check the CTC elements on the form. If the claimant

• Is receiving family or family / baby element, only, the recovery percentage to be applied is 100%

• Is not receiving family or family / baby element, only, the recovery percentage to be applied is 25%

For all other claimants

• Apply a recovery percentage of 25%

• Add together the amount of provisional payments issued to the claimant

Then

• Record the total on form TC648

Note: If you are already using form TC648 from following the cross year recovery process at step 11, then add this figure to the form

• Child Tax Credit (CTC) from the amount of the CTC award

And / or

• Working Tax Credit (WTC) from the amount of the WTC award

Then

• Note down the calculation and the resulting amount(s) on form TC648

• If you can recover the total amount from the relevant tax credit, go to step 17

• If the amount of the provisional payments is more than the amount due to be paid for that tax credit

• Deduct the amount from any remaining tax credits. This is to make sure that the amount is recovered in year and go to step 17

Or if there are no other tax credits from which to deduct the amount

• Recover the amount from next year’s entitlement, go to step 15

‘TCMZ Provisional PYT made are more than entitlement for XX / XX. Amount still to be recovered is £XX.XX for year XX / XX. O/P to be recovered for XX / XX is £XX.XX’

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 23

Note: This amount will need to be kept in view when calculating next year’s entitlement

• In payment from another member state, go to step 18

• Not in payment and there is an overpayment, go to step 21

• Not in payment and there is no overpayment, go to step 22

Determine whether the claimant’s details are still the same as those decided last year

• If the claimant is stating that the details have now changed, follow the guidance in Deciding Competency

• Where the UK is competent, go to step 19

• Where the OMS is competent, go to step 20

• Calculate the rate of the benefit in payment from the OMS, from the award start date up to 4 weeks from today

• Offset this amount against the amount of CTC due to be paid. This will give a net of CTC still to be paid

Notes:

1. If the OMS benefit amount exceeds the CTC, no CTC will be payable for the period of the offset. CTC will be paid in full from the end of the calculated 4 week period

2. Any WTC will be paid in full from the start date of the tax credits award

Then

• If the claimant has an overpayment, go to step 21

• If the claimant does not have an overpayment, go to step 22

• Contact the Child Benefit (ChB) Office and ask what the weekly amount of ChB is paid to the claimant

Note: Where UK ChB should be in payment but has not been claimed, ask the ChB Office to provide a notional amount of entitlement and use this figure in the offset calculation

• Calculate the number of weeks in the CTC award period and round down to the nearest whole week

• Multiply the number of weeks in the CTC award period by the amount of the weekly UK ChB payment

• Multiply the amount of the equivalent OMS ChB by the number of weeks in the CTC award period

• Deduct the total rate of the OMS Child Allowance (or the comparable benefit in the OMS) for that same period, from the amount of the weekly ChB payment (A). Note down figure A

• Multiply the weekly rate of the equivalent OMS CTC by the number of weeks in the award period

• Deduct the total rate of the equivalent OMS CTC from the CTC amount payable (B). Note down figure B

Note: If there is no equivalent OMS CTC payable to the claimant, note down the full amount of CTC payable to the claimant instead of figure B

• Check figures A and B

• If both figures are negative, no tax credits are payable, take no further action

• If both figures are positive, figure B is due to be paid, go to step 21

Note: The UK ChB will pay the amount in figure A

• If figure A is negative and figure B is positive, add the figures together. If the resulting figure is

• Positive, go to step 21

• Negative, go to step 22

• If figure A is positive and figure B is negative, nothing is due to be paid to the claimant. The UK ChB Office will pay the amount in figure A

• Deduct the percentage amount you are recovering from the remaining amount of tax credits due to be paid to the claimant

Note: Calculate the amount of each tax credit (WTC / CTC) separately

• Make a note on form TC648 of

• The calculation

• The amount of tax credits that you are recovering

And

• The amount of tax credits that are still due to be paid

For example, ‘CTC left to be paid – 25% recovery = what is due to the claimant in the remaining award period’

Note: If the claimant is now not entitled to one of the tax credits in the current year but they have an overpayment for this tax credit in the previous year for that tax credit, you must add this amount to any overpayment on the remaining tax credit

• Use the amounts of tax credit(s) remaining to calculate the payment profile and work out the correct payment amounts in each entitlement period, if appropriate

Note: To help calculate the payment profile, follow the guidance in Worked Example – payment profile for a revised award

• Use the same pay day that was selected for the claimant last year

• Schedule the payments to ensure that they are received by the claimant on the payment due date

• Ensure that any arrears due are calculated immediately and pay them with the first payment. If the payment is not due (4 week pay cycle), only the arrears must be paid

Note: For polygamous marriages / polyandrous marriages if there is more than one main carer of the children, work out the entitlement for each partner in the claim

• The amount of the entitlement of WTC for CY

• The amount of the entitlement of CTC for CY

• The amount of any underpayment issued to the claimant for PY

• The amount of the overpayment for PY

• The amount of the overpayment being recovered, in year

• The amount of any overpayment that has carried forward

Note: Include any overpayment for CY separately where the provisional payments paid are more than the award amount

And if

• A future change of circumstances has been provided, pass the new award amounts for each tax credit with details of any under / over payments

Or where

• Another member state was involved, provide details of the original amount of CTC before the offset, as well as the amount of CTC actually paid