TCM0078440 | Claims - work lists (VFs - 1 to 12): Verification Failures work list - Rule 5 - Child in current NTC award (pre-award)

From HM Revenue & Customs · Tax Credits Manual

Checklist

Before you follow this guidance make sure

you follow the guidance in TCM0138020
you have the correct user roles to follow this guidance.
you are in the correct MU. Use TCM0322460 for the correct MU number.

Reasons not to follow this guidance

You do not need to follow this guidance if

the work list item is on a post award claim
the work list item is not a Rule 5 verification failure.

Background

This guidance must be followed when there is a Rule 5 ‘Child in a current award’ verification failure work list item on a pre-award claim.

Note: From 6 April 2017, customers will only get the Family Element of Child Tax Credit where they are responsible for a child or children born before that date.

Note: The individual child element of Child Tax Credit will no longer be awarded for third and subsequent children or qualifying young persons in a household, born on or after 6 April 2017, unless it meets the exception criteria.

Guidance

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.

Note: If you are dealing with a claim where the customer states they are claiming for a child/young person who is an exception contact the Exception Team

Step 1

If you are dealing with a new Rule 5 ‘Verification Failure’ work list item on a pre-award claim, go to Step 2.

If you are dealing with an expired action date

check whether you can continue to process the work item. Follow the guidance in TCM0138020
then, if you can continue to process the work item
go to Step 12.

If you are dealing with a returned form TC656, TC656A or TC664

check whether you can continue to process the work item. Follow the guidance in TCM0138020
then, if you can continue to process the work item
go to Step 14.

If you are dealing with a returned form TC655

check whether you can continue to process the work item. Follow the guidance in TCM0138020
then, if you can continue to process the work item
go to Step 14.

If you are dealing with a reply from Technical Advice Line (TAL) about the main responsibility for a child or young person

check whether you can continue to process the work item. Follow the guidance in TCM0138020
then, if you can continue to process the work item
go to Step 20.

If you have been passed the case back from the Level 2 User or your manager, go to Step 24.

Step 2

Access function ‘Manage Verification Failures’ to make a note on the BF cover sheet of the existing customer’s

name
NINO. For how to do this, use TCM1000250.

If you are able to note down the details of the existing customer, go to Step 4.

If you are unable to note down the details of the existing customer because the investigate screen is blank, go to Step 3.

If you are unable to note down the details of the existing customer because the ‘Investigate’ button is greyed out

transfer the case to the BF MU. For how to do this, use TCM1000023
update Household Notes with the message HC01 from TCM0160020. For how to do this, use TCM1000001
set the appropriate action date. For how to do this, use TCM1000008
take no further action

Step 3

Try to find the existing customer using all available systems.

If you can find the customer, go to Step 4.

If you cannot find the customer, pass the case to your Technical Advice Line Liaison Officer (TALLO).

Step 4

In function ‘Manage Verification Failures’, make a note on the BF cover sheet of the failed customer’s

name
NINO
child/ren’s name and date/s of birth

then

go to Step 5.

Step 5

Access function ‘View Application’ to make a note on the BF cover sheet of the existing customer’s

name
NINO
child/ren’s name and date/s of birth

then

go to Step 6.

Step 6

Note: Where it is clear there is no overlap or the customer is included in another claim, the verification failure can be resolved without making any enquiries.

Check whether you can continue to process the work item. Follow the guidance inTCM0138020 (link is external) , then, if you can continue to process the work item

Compare the existing customer’s address and the failed customer’s address.

If the addresses are different, you can not be sure it is the same child or young person, go to Step 7.

If the addresses are the same, then it is the same child or young person, go to Step 8.

Step 7

Compare the child reference numbers for the child or young person for both households as they are shown on the Child Benefit claim. For how to do

access Child Benefit Service desktop icon
enter the customer's NINO in the upper navigation bar and select 'search'
check the customer's name and address in the top left corner on the screen to ensure you select the correct customer details
check child summary or details of the relevant child's reference number.

If the child reference numbers are the same, then it is the same child or young person, go to Step 8.

If you are unable to trace the child’s reference number on the Child Benefit claim for either customer or both customers, you can not be sure it is the same child or young person, go to Step 9.

If the child reference numbers are not the same, then it is not the same child or young person, go to Step 27.

Step 8

To help with the discussions with the customers

check and make a note on the BF cover sheet of all the child/ren’s responsibility start date/s and whether there are any end dates for both customers. For how to do this, use TCM1000245
check and make a note of the effective date of the failed claim. For how to do this, use TCM1000218
check and make a note of the date the failed claim was received. For how to do this, use TCM1000246
then
phone each customer in turn to confirm the responsibility start dates and/or responsibility end dates for the child or young person and make a note on the form TC648 of their answers. Follow the guidance in TCM0094080.
Note: You should make a minimum of two attempts to phone the customer and also use the information on form TC656 to advise the customers about how they might determine the respective responsibility start or end dates.

If the failed customer tells you they included the child or young person in error, go to Step 18.

If during your phone conversations it is established that responsibility for the child or young person ended in the existing customer’s household before it began in the failed customer’s household, go to Step 18.

If you are unable to get the existing customer to agree their responsibility for the child or young person ended before the failed customer’s responsibility started, go to Step 9.

If you are unable to contact either customer or both customers by phone, go to Step 9.

Step 9

Consider if it is appropriate to set the inhibit finalisation marker on any unfinalised award (s) for the existing customer.

If the annual declaration has already been actioned and you cannot inhibit finalisation, go to Step 11.

If the annual declaration has not been actioned,

check the first specified date (1SD) for the existing customer. For how to this, use TCM1000002
go to Step 10.

Step 10

If there is more than 8 weeks between today’s date and 1SD, you do not need to inhibit finalisation, go to Step 11.

If there is less than 8 weeks between today’s date and 1SD,

set the inhibit marker on any unfinalised award (s) for the existing customer using the reason ‘Annual Declaration Review’, for how to this, use TCM1000173
go to Step 11.

Step 11

Send the following forms to obtain more information

complete form TC656 for the existing customer
complete form TC656a for the failed customer
enclose a return envelope with each set of forms
send the completed forms to the customers
complete a BF cover sheet and write the child/ren’s name/s, their date/s of birth and responsibility start dates in the information space on the form to allow the two claims to be linked together when the forms are received back or the action dates have expired
update Application Notes with the message HC43 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000028
update Household Notes with the message HC42 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
transfer the case to the BF MU. For how to do this, use TCM1000023
set an action date of 30 days in the future. For how to do this, use TCM1000008
take no further action.

Step 12

Check Application Notes and Household Notes to determine the reason why the action date was created. For how to do this, use TCM1000021 (Application Notes) and TCM1000067 (Household Notes).

If the reason for the action date is because forms TC656, TC656a, or TC664 have been issued but not returned, go to Step 13.

If the reason for the action date is because forms TC655 have been issued but not returned, go to Step 17.

Step 13

Note: A customer must be given a minimum of 30 days to respond to our enquiries before we can take any final action.

If the 30-day action date has expired and there has not been a complete reply from either customer, go to Step 18.

If the 30-day action date has expired and there has been a complete reply from the existing customer but not from the failed customer, go to Step 18.

If the 30-day action date has expired and there has been a complete reply from the failed customer but not from the existing customer, go to Step 18.

Step 14

If you are dealing with a returned form and no decision has been made, go to Step 15.

If you are dealing with a returned form which agrees with a decision that has already been made because of an expired BF date

update Household Notes with the message HC61 from TCM0160020. For how to do this, use TCM1000001
go to Step 28.

If you are dealing with a returned form which disagrees with a decision that has already been made because of an expired BF date

update Household Notes with the message HC72 from TCM0160020. For how to do this, use TCM1000001
redirect to mandatory reconsideration team
take no further action.

If you are dealing with a returned form and a decision has already been made after contacting the customer, go to Step 28.

Step 15

Consider the information you have received from the existing and failed customers and decide whether or not you are sure it is the same child or young person in both households.

If you have received a reply from only one customer

update Application Notes with the message HC45 from TCM0160020 in the failed customer’s claim, if you received a reply from that customer. For how to do this, use TCM1000028
update Household Notes with the message HC45 from TCM0160020 in the existing customer’s claim, if you received a reply from that customer. For how to do this, use TCM1000001
wait until a reply is received from the other customer or the action date has expired, whichever is sooner
take no further action.

If you have now received a reply from both customers and you are not sure that it is the same child or young person in both households, go to Step 16.

If you have now received a reply from both customers and you are sure it is the same child or young person in both households, go to Step 18.

Step 16

You need to be satisfied that the child or young person in the existing and failed households is the same person. To help you do this

complete form TC655 for both customers’ households using ‘Tab’ to enter the child’s or young person’s name and complete the ‘Official use’ boxes
enclose a return envelope with each form
send the completed forms to the customers
update the BF cover sheet you used earlier in the process for each customer
update Application Notes with the message HC46 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000028
update Household Notes with the message HC46 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
set an action date for 30 days in the future. For how to do this, use TCM1000008
take no further action.

Step 17

Note: A customer must be given a minimum of 30 days to respond to our enquiries before we can take any final action.

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

If the 30-day action date has expired and there is a genuine reason for one of the customers not replying

complete a form TC655 for the customer who has a genuine reason for not sending you the documents you requested
enclose a return envelope with the form
send the completed form to the customer
update the BF cover sheet you used earlier in the process for each customer
update Application Notes with the message HC46 from TCM0160020 on the failed customer’s claim, if you have issued the form to them. For how to do this, use TCM1000028
update Household Notes with the message HC46 from TCM0160020 on the existing customer’s claim, if you have issued the form to them. For how to do this, use TCM1000001
set an action date for a further 30 days in the future or some other appropriate period depending on the circumstances. For how to do this, use TCM1000008
take no further action.

If the 30-day action date has expired, there is no genuine reason for not replying and no document has been received from either customer, go to Step 18.

If the 30-day action date has expired, there is no genuine reason for not replying and a document has been received from the existing customer but not from the failed customer, go to Step 18.

If the 30-day action date has expired, there is no genuine reason for not replying and a document has been received from the failed customer but not from the existing customer, go to Step 18.

Step 18

Note: For further information about responsibility for a child or young person, use TCM0114060.

Complete in all cases a record of decision made on main responsibility form

Note: You do not need to complete a Record of Decision if both customers have made an election or agree responsibility start and end dates with no overlap.

Consider the evidence provided and make a fair and reasonable decision about which customer has main responsibility for the child or young person.

Note: If you are dealing with a case where the child lives abroad, transfer the case to the International MU 298466.

If you are able to decide who has main responsibility for the child or young person, go to Step 20.

If you are unable to decide who has main responsibility for the child or young person, go to Step 19.

Step 19

Note: You must consider making further enquiries to obtain additional information from the customers to help you make a decision about which customer has main responsibility for the child or young person.

After considering all the information available, if you decide that the child or young person’s care is so equally balanced between both customers that neither has main responsibility

consult your TALLO (who may refer the case to TAL) for advice on how to decide which customer has main responsibility for the child or young person
then, when you receive the advice from TAL
go to Step 20.

Step 20

Only one customer can have main responsibility for the child or young person.

If you decide that main responsibility for the child or young person is with the failed customer, go to Step 21.

If you decide that main responsibility for the child or young person is with the existing customer, go to Step 23.

If you decide that neither customer is responsible for the child or young person, go to Step 24.

Step 21

Note: Where there are competing claims for CTC, if the child or young person normally lives with both the existing and failed customers, irrespective of the hour/day ratio there is ongoing ‘shared care’ for that child or young person. We can not backdate child responsibility decisions when there is ongoing shared care.

Note: Where it has been established that a child or young person has moved from one household to another - that is, the child is no longer ‘normally living with’ the original customer and is now ‘normally living with’ the new customer, this is a change of circumstances. Backdating can occur in these cases.

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

If you have evidence that the child or young person has moved from one household and will now permanently and solely live with the other household

calculate the date that responsibility for the child or young person will begin on the failed customer’s claim and end on the existing customer’s claim, For how to so this, use TCM1000083
make a note of the dates on the BF cover sheet.
go to Step 22.

If there is ongoing shared care because the child or young person normally lives with both the existing and failed customer

calculate the date that responsibility for the child or young person will begin on the failed customer’s claim and end on the existing customer’s claim, For how to so this, use TCM1000095
make a note of the dates on the BF cover sheet
go to Step 22.

If the customer has made an election or agreed the responsibility start and end dates, go to Step 25.

Step 22

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

Make sure you are able to make the changes. Follow the guidance in TCM0042260, then, if you can make the changes

using the dates you have calculated, exclude the child or young person from the existing customer’s claim. For how to do this, use TCM1000171
complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this, use TCM1000173
update Household Notes with the message HC49 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
using the date you have calculated, change the ‘responsibility start’ date for the child or young person on the failed customer’s claim. For how to do this, use TCM1000244
update Application Notes with the message HC50 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000300
go to Step 25.

Step 23

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

Make sure you are able to make the changes. Follow the guidance in TCM0042260, then, if you can make the changes

remove the child or young person from the failed customer’s claim and update Application Notes with the message HC48 from TCM0160020. For how to do this, use TCM1000300
remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this, use TCM1000173
update Household Notes with the message HC50 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
go to Step 25.

Step 24

Note: In some instances the earliest date you can exclude the child or young person from an award is 6 April in the current year rather than the day they were added to that award.

Make sure you are able to make the changes. Follow the guidance in TCM0042260, then, if you can make the changes

remove the child or young person from the failed customer’s claim and update Application Notes with the message HC48 from TCM0160020. For how to do this, use TCM1000300
check the date the failed claim was received and make a note of it. For how to do this, use TCM1000246
exclude the child from the existing claim using an exclusion date which is the day before the failed claim was received or the date the existing customer stopped being responsible for the child if that is earlier. For how to do this, use TCM1000171
complete the ‘Amend Finish’ screen. For how to do this, use TCM1000032
remove the inhibit finalisation marker, if applicable, on any unfinalised award(s) for the existing customer. For how to do this, use TCM1000173
update Household Notes with the message HC49 from TCM0160020 on the existing customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
go to Step 25.

Step 25

Complete and send form TC1027 to the customer or customers who you decided do not have main responsibility for the child or young person.

Note: You do not need to send a form TC1027 to either customer if you have decided that both customers have made an election or agree with responsibility start and end dates with no overlap.

If the child or young person was removed from the failed claim and excluded from the existing claim

update Application Notes with the message HC52 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000028
update Household Notes with the message HC52 from TCM0160020 on the existing customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
complete and send form TC1027 to the customer or customers who you decided do not have main responsibility for the child or young person
manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
go to Step 28.

If the child or young person was removed from the failed claim only

update Application Notes with the message HC52 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000028
complete and send form TC1027 to the customer or customers who you decided do not have main responsibility for the child or young person
go to Step 26.

If the child or young person was excluded from the existing claim only

update Household Notes with the message HC52 from TCM0160020 on the existing customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
complete and send form TC1027 to the customer or customers who you decided do not have main responsibility for the child or young person
go to Step 26.

If both customers have made an election or agree with the responsibility start and end dates with no overlap in responsibility and the decision is in favour of the failed customer

update Household Notes with the message HC49 from TCM0160020 on the existing customer’s claim and HC50 on the failed customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
end responsibility for the child or young person on the existing customer’s claim on the elected date and input the responsibility start date for the child or young person on the failed customer’s claim on the day after the elected date
do not send form TC1027 to the failed customer as a new award notice will be issued
manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
go to Step 28.

If both customers have made an election or agree with the responsibility start and end dates with no overlap in responsibility and the decision is in favour of the existing customer

update Application Notes with the message HC48 from TCM0160020 on the failed customer’s claim and HC50 on the existing customer’s claim. For how to do this, use TCM1000001
delete the child from the failed claim and make no change to the existing claim
do not send form TC1027 to the failed customer as a new award notice will be issued
manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
go to Step 28.

Step 26

Complete and send form TC1062 to the existing customer if you have decided they have main responsibility for the child or young person.

Note: You do not need to send a form TC1062 to either customer if you have decided that neither of them has main responsibility for the child or young person or if you have decided that both customers have made an election or agree with responsibility start and end dates with no overlap.

If you decided the failed customer had main responsibility for the child or young person

manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
go to Step 28.

If you decided the existing customer had main responsibility for the child or young person

send a duplicate award notice to the customer to provide them with new appeal rights. Follow the guidance in TCM0184140
update Household Notes with the message HC53 from TCM0160020 on the existing customer’s claim. For how to do this, use TCM1000001
manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
go to Step 28.

If both customers have made an election or agree with the responsibility start and end dates with no overlap in responsibility

update Household Notes or Application Notes with the message HC50 from TCM0160020 on the existing or failed customer’s claim depending on whom you have given responsibility to. For how to do this, use TCM1000001
update Application Notes with the message HC50 from TCM0160020 on the failed customer’s claim. Make sure you retain the message. For how to do this, use TCM1000001
manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247
do not send form TC1062 as a new award notice will be issued
go to Step 28.

Step 27

Manually change the status of the Rule 5 verification failure. For how to do this, use TCM1000247.

update Application Notes with the message HC54 from TCM0160020 on the failed customer’s claim. For how to do this, use TCM1000028
go to Step 28.

Step 28

Prepare and send the documents to storage

place the completed ‘Record of decision made on main responsibility’ form with the casepapers for both customers, if applicable.
place any correspondence in the relevant casepapers for each customer
send the two sets of casepapers to storage in separate wallets. Follow the guidance in TCM0074140.