Non-Complex To Complex Change Of Circumstances (AG)

• Include a 19th child in the family

• Include a 3rd adult as the result of a polygamous marriage or polyandrous marriage

• Include income-related Employment and Support Allowance ( ESA) for a tax credits claimant receiving Working Tax Credit ( WTC)
   
• Include work details when a tax credits claimant receiving Child Tax Credit ( CTC) and income-related ESA becomes eligible for WTC
   
• Withdraw the 2nd adult element because one claimant in a childless couple has been given a custodial sentence of more than 12 months

• Select a tax credit type (WTC or CTC)

• Click on the [Payment Details] button. This will take you to the Payment Details screen

• Make a note of the method of payment and the pay frequency on form TC648

Note: This is because once you have applied the change of circumstances, you must make manual payments to the claimant, at the same frequency

• Click on the [Cancel] button to return to the Award Summary screen

Note: Repeat the process if both WTC and CTC are in payment

And then

• If the change of circumstances relates to

• An additional child in the family, go to step 4

• An additional adult in the family, go to step 8
   
• Including income-related ESA for a tax credits claimant receiving WTC, go to step 12
   
• Including work details when a tax credits claimant receiving CTC and income-related ESA becomes eligible for WTC, go to step 12

• Withdrawing the 2nd adult element, go to step 12

• Aged 6 months or older, you must verify his / her details, go to step 5

• Less than 6 months old, set up dummy papers and set a manual BF date to correspond with the date that the child reaches the age of 6 months and go to step 12

Note: In this instance, you can accept the child’s details without verification until he / she reaches the age of 6 months

• The Child Benefit payee’s National Insurance number ( NINO) is the same NINO as one of the tax credit claimants

• The Child Benefit Reference Number corresponds to the details on the tax credits claim

• The name and date of birth of the child on CBOL match the details provided by the claimant

• If you can confirm these details, go to step 12

• If you cannot confirm these details, go to step 6

• Copy the claimant’s surname and NINO onto all parts of the form

And

• Ask the claimant to return it with the birth certificate

Note: This will ensure that the claim can be traced and the birth certificate will be sent to the European Economic Area (EEA) Team

Then

• Go to step 7

• Set a clerical BF for 16 days

And

• Use Function MAINTAIN HOUSEHOLD NOTES to record that you have issued the form and the 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

• If you receive verification of the child’s date of birth by the BF date, go to step 12

• If not, issue a reminder form TC609. Follow the guidance in Manual Reminder Cycle – Post Award and set the clerical BF for a further 14 days

• If you receive verification of the child’s date of birth by the extended BF date, go to step 12

• If not, go to step 20

• Enter the details for the additional adult

• Click on the [Search] button

Once the trace has been run

• Click on the [Clear] button

• If the computer fails to trace the additional adult or a NINO has not been provided for the additional adult, go to step 9

• If the computer manages to trace the additional adult, go to step 11

• Follow the guidance in Residence And Presence In The United Kingdom to check that he / she has satisfied the Residency and Immigration Rules

• If the additional adult does not satisfy the Residency and Immigration Rules, go to step 20

• If the additional adult does satisfy the Residency and Immigration Rules

• Follow the guidance in ‘Verification Failures’ Work List

Note: When following the guidance in ‘Verification Failures’ Work List you will be required to complete a form CA8288 for Specialist Trace Unit (STU). You must highlight the fact that this claim is not a verification failure but a complex case being dealt with by the European Economic Area (EEA) Team

• BF the claim for 5 days to await a reply from STU

And if they advise you that NINO allocation is required

• BF the case for a further 3 weeks

• Subsequently allocated, go to step 11

• Not allocated, go to step 20

• Answers to all the questions on the claim form in respect of the additional adult

• Details of the additional adult’s

• Working hours

• Income

And

• Benefits for the relevant tax year

Note: If the claimant does not consider the new income figures to be representative, he / she may ask to have the Current Year (CY) income taken into account instead. If so, you will need to obtain CY income and benefits for all the adults included in the family

• Who is the main carer for each child in the family (this will ensure that the CTC elements and Childcare elements are paid to the correct claimant)

Then

• Record all the relevant details on form TC648 and go to step 12

• In the Suspensions Available To Be Set field, select ‘Manual Payment Request’ from the options available

• Click on the [Add] button. This will set the payment suspension

And

• Click on the [OK] button

Note: If there are 2 adults on the computer, the payment suspension must be set for both claimants

• Set an action date of 180 days (the maximum that can be set) on the ‘Suspended Payment’ Work List item, making sure that the Retained checkbox is ticked

And

• Set a manual BF for 180 days as a reminder that you must repeat the action on the ‘Suspended Payment’ Work List

Note: You must repeat this action until the end of the award period

• Use Function VIEW HOUSEHOLD ACCOUNT and enter the details for the claimant receiving direct payments into the Key Entry Data screen. The View Award Period Summary screen will be displayed

• Click on the [Schedule] button. This will display the View Direct Payment Schedule screen

• Make a note of the Issued Date of the most recent direct payment, on form TC648

Note: This will enable you to check from what date the payment suspension is applied. For example

• If a direct payment was issued on the previous day it will have been sent to the claimant

• If a direct payment is due for issue on the next day, the payment suspension will prevent it being issued

• If a payment is due on the date you have applied the suspension, you should check the payment status. If it is ‘still to be paid’ the payment suspension will prevent its issue

• If you have suspended a payment due for issue that day or the next day, you must contact the claimant, following the guidance in Contacting the Claimant and advise them that future payments will be made manually. Advise them when they can expect to receive the next payment

• If both claimants are receiving direct payments, repeat the action in Function VIEW HOUSEHOLD ACCOUNT in respect of the second claimant

• Go to step 15

• Select ‘Household’ from the toolbar menu

• Select ‘Details’ from the options available

And

• Check the Complex Case checkbox to set the manual correspondence and complex case signals

Note: Checking the ‘Complex Case’ checkbox automatically checks the ‘Manual Correspondence’ checkbox. Once the complex case signal has been set it cannot be removed

And then

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

• Received date (the date the change of circumstances was received)

• The source (paper)

• If the notification of the change of circumstances is signed

• The reason for the change of circumstances

And then

• Click on the [OK] button

• 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 17

• 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 17

• 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 17

• Make a note on form TC648 of the amount of the direct payments of WTC and / or CTC made up to date

• Go to step 18

Use the ‘SEES’ Tax Credit Entitlement Calculator (follow the guidance on the ‘SEES’ Menu System Help) and enter

• Details of the current entitlement from the effective date of claim taken from the screen print

• Details of the change of circumstances from the effective date of change

Once the new award has been calculated

• Check if there are any future known changes of circumstance within the award period. For example, a child leaving school. Take this into account when calculating the award

Then

• Take 2 prints of the calculation

• File one print with the casepapers

And

• Pass the other to your supervisor to be used to collate statistics for Revenue Finance (RF) Worthing

And then

• Go to step 19

• Follow the guidance in Payment And Accounting For Complex Cases

Then

• Offset any payments of WTC and / or CTC which have already been paid to the claimant

And

• Begin to make manual payments of WTC and / or CTC to the claimant. Follow the guidance in Manual Payments

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

• If there is a new child aged over 6 months in the family and you cannot verify the details enter

• ‘TCMZ Child (Name) excluded as unable to verify’

And then

• Go to step 23

• If there is a new child aged over 6 months in the family and you can verify the details enter

‘TCMZ Complex case – do not release payment. Transfer worklist item to MU286113’

• The child’s full name

• The date of birth

• Any appropriate notes. For example if the child is disabled or if there is a Connexion date

• The new amount payable including the start and end dates

And then

• Go to step 21

• If there is a new child, less than 6 months old in the family enter

• ‘TCMZ Complex case – do not release payment. Transfer worklist item to MU286113’

• ‘TCMZ Child ( Name) accepted not verified – less than 6 months old’

And then

• Go to step 21

• If there is an additional adult in the family enter

• ‘TCMZ Complex case – do not release payment. Transfer worklist item to MU286113’

• The adult’s full name

• Date of birth

• NINO

• Work details

• Income details

• The new award payable, including start and end dates

• The name of the main carer of any children in the family

And then

• Go to step 21

• If there is an additional adult in the family who cannot be included in the tax credit award enter

• ‘Spouse (Name) excluded as not resident (or unable to allocate NINO)’

And then

• Go to step 23

• If you are including income-related ESA for a tax credits claimant receiving WTC enter

• ‘TCMZ Complex Case – do not release payment. Transfer worklist item to MU286113’
   
• The full name of the tax credits claimant
   
• The date income-related ESA started • The new award payable, including start and end dates

And then

• Go to step 21

• If you are including work details when a tax credits claimant receiving CTC and income-related ESA becomes eligible for WTC enter

• ‘TCMZ Complex Case – do not release payment. Transfer worklist item to MU286113’
   
• The full name of the tax credits claimant
   
• The full name and address of the employer
   
• The date employment commenced
   
• The total hours worked
   
• The new award payable, including start and end dates

And then

• Go to step 21

• If one of the claimant’s has been given a custodial sentence of more than 12 months enter

• ‘Complex Case – do not release payment. Transfer worklist item to MU286113’

• ‘Custodial sentence of more then 12 months, commencing on DD/MM/YY (enter date as applicable), manual payments made’

• The new amount payable, including start and end dates

And then

• Go to step 21

• Not declared any benefits on the claim, go to step 23

• Declared any benefits on the claim or ESA is now being included

• Obtain the telephone number for the local Department for Work and Pensions (DWP) / Department for Social Development (DSD) or Jobcentre Plus office as appropriate either from

• The DWP Directory

Or

• The Business Helpdesk through your Helpdesk Liaison Officer (HDLO)

• Contact the appropriate office and tell them

• The claimant(s) names

• NINOs

• That the claim is now ‘complex’

• The new rates of WTC and / or CTC

And

• The start date

• Ask them to update their computer with the following message

‘Complex case, full details not captured on TC computer. Do not enter any details. Contact European Economic Area (EEA) Team via Contact Centre’

Note: Taking the above action will ensure that the correct tax credits amount can be considered where appropriate by DWP / DSD / Jobcentre Plus

• Not required go to step 23

• Required, obtain the correct fax number and complete a tax credits fax sheet with the following details

• Who the fax is to be sent to

• The claimant’s full name and NINO (include all claimants in the family)

• The award start date and the new rates of WTC and / or CTC

• A direct dial telephone number for DWP / DSD / Jobcentre Plus to use for any further contact regarding this claim only

Then

• Send the fax and go to step 23

If you have

• Included an additional child, go to step 24

• Not included an additional child because you have been unable to verify the date of birth, go to step 25

• Included an additional adult as the result of a polygamous marriage or polyandrous marriage, go to step 26

• Not included an additional adult because he / she does not satisfy the Residency and Immigration Rules (or a NINO can not be allocated), go to step 27
   
• Included income-related ESA for a tax credits claimant receiving WTC, go to step 24
   
• Included work details for a tax credits claimant receiving CTC and income-related ESA, go to step 24

• Withdrawn the 2nd adult element because of a custodial sentence of more than 12 months, go to step 28

• An additional child

• Complete a manual award notice selecting the relevant paragraphs to inform the claimant(s) or appointee(s) of the total new award
   
• Send the notice to the claimant(s) or appointee(s) address

• If the child is less than 6 months old go to step 31
   
• If the child is 6 months or older go to step 39

• Income-related ESA for a tax credits claimant receiving WTC

• Complete a manual award notice selecting the relevant paragraphs to inform the claimant(s) or appointee(s) of the total new award
   
• Send the notice to the claimant(s) or appointee(s) address

Then

• Go to step 37

• Work details for a tax credits claimant receiving CTC and income-related ESA

• Complete a manual award notice selecting the relevant paragraphs to inform the claimant(s) or appointee(s) of the total new award
   
• Send the notice to the claimant(s) or appointee(s) address

Then

• Go to step 37

• Complete a blank LFC explaining why the child has not been included in the family

• Send the notice to the claimant(s) or appointee(s) address

• Go to step 38

• Complete 2 copies of the manual award notice selecting the relevant paragraphs to inform the claimant(s) or appointee(s) of the total new award

• If the additional adult has earnings

• Add together the hours and earnings of adults 2 and 3. This is because the form TC602 (MAN) caters for only 2 claimants

• Complete a blank LFC

• Explain that the hours and earnings of two of the adults have been added together (if appropriate)

And

• Ask the additional adult to sign and return one of the copies of the award notice

• Send the notices and LFC to the claimant(s) or appointee(s) address

• Set a clerical BF date for 16 days in the future

And then

• Go to step 33

• Complete a manual award notice and select the relevant paragraphs to inform the claimant(s) or appointee(s) of the award

• Complete a blank LFC and explain why the adult is excluded from the family

• Send the notice and LFC to the claimant(s) or appointee(s) address

• Go to step 38

• Complete a manual award notice, select the relevant paragraphs to inform the claimant(s) or appointee(s) of the new total award

• Complete a blank LFC

• Explain that the second adult element is not payable when a custodial sentence of more than 12 months is being served

And

• Ask the claimant or appointee to advise the Tax Credit Office (TCO) when the claimant is released

• Send the notice and LFC to the claimant(s) or appointee(s) address

Go to step 37

• Use CBOL to verify the child’s details

• If you can verify the details, use Function MAINTAIN HOUSEHOLD NOTES and add a record of the details and go to step 37

• If you cannot verify the details, go to step 30

• Copy the claimant’s surname and NINO onto all parts of the form

And

• Ask the claimant to return it with the birth certificate

Note: This will ensure that the claim can be traced and the birth certificate will be sent to the European Economic Area (EEA) Team

Then

• Set a clerical BF date for 16 days in the future and go to step 31

• Is received within the BF date period, go to step 37

• Is not received within the BF date period

• Send a reminder form TC609, following the guidance in Manual Reminder Cycle – Post Award

And

• Re-set the clerical BF date for a further 14 days in the future

• Is received by the end of the extended BF date period, go to step 37

• Is not received by the end of the extended BF date period

• Use Function MAINTAIN HOUSEHOLD NOTES and enter a message that the child’s date of birth can not be verified

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

And

• Go to step 39

• Is returned and signed by the additional adult, within the BF date period, go to step 37

• Is not returned signed by the additional adult, within the BF period

• Send a reminder form TC609

And

• Re-set the clerical BF date for a further 14 days in the future

• Do not make any further manual payments of CTC or WTC

• Use Function MAINTAIN HOUSEHOLD NOTES and enter the following message

‘TCMZ Manual payments have ceased - claimant has failed to sign award notice’

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 35

Re-set the clerical BF for a further 30 days in the future. If the award notice is

• Returned within this period

• Restart manual payments

And

• Use Function MAINTAIN HOUSEHOLD NOTES to add the following message

‘TCMZ Award notice returned – manual payments resumed’

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 37

• Is not returned, go to step 36

• Use Function AMEND APPLICATION

• Click on the [Application] button

Then

• Click on [Change of Circumstances] button. This will display the Key Entry Data screen

• Enter the claimant’s details

And

• Click the [OK] button. The ‘Signals’ screen will be displayed

• Click the [OK] button again

• Click on the [Household] button

And

• Click on the [Details] button. The Household Details screen will be displayed

• Enter the ‘Household End Date’. This will be the date you received the change of circumstances, or the date the third adult joined the family (if known)

This will terminate the award

• Once the award has been terminated

• Issue a manual notice to the claimant(s) or appointee(s) to explain why the award has been terminated

• Use Function MAINTAIN HOUSEHOLD NOTES and enter the following message

‘TCMZ Spouse (Name) excluded - unable to obtain signature. H/H ended (DD/MM/YY)’

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

And

• Go to step 39

• Process the manual payments each week / 4 weeks (according to the payment profile)

• Send all documentation to storage. Follow the guidance in Preparing And Sending Documents For Storage

Note: The claim will remain non-complex, as there will still be only 18 children in the family (or 2 adults)

• You have terminated the family because the additional adult has failed to sign the award notice, continue to hold any case papers as it will be necessary to finalise the award manually

• A child, less than 6 months old, is accepted without verifying the date of birth and subsequently can not be verified on reaching 6 months, contact Business Helpdesk through your Helpdesk Liaison Officer (HDLO) for guidance

Note: These claims are no longer complex