SolvedTCM1000202 | How to update previous year income details
From HM Revenue & Customs · Tax Credits Manual
Step 1
On the ‘Function Menu’
select ‘Application’ on the toolbar
select ‘Correction’ from the options available. You will be taken to the ‘Key Entry Data’ screen
enter the customer’s NINO
select the relevant checkbox
select ‘OK’.
If you are taken to the ‘Select Household’ screen
select the relevant claim
select ‘OK’. You will be taken to the ‘Applicant Details’ screen
go to Step 2.
If you are taken to the ‘Select Application’ screen
select the relevant claim
select ‘OK’. You will be taken to the ‘Applicant Details’ screen
go to Step 2.
If the message ‘Details must be recorded in the Capture Application Function. Do you wish to proceed?’ displays
select ‘Yes’. You will be taken to the ‘Applicant Details’ screen
go to Step 3.
If you are taken straight to the ‘Applicant Details’ screen, go to Step 2.
Step 2
On the ‘Applicant Details’ screen
select either ‘Inc1’ if you are updating the previous year (PY) income for customer 1 or ‘Inc2’ where you are updating the PY income for customer 2 on the toolbar. You will be taken to the ‘Income - Applicant 1’ or ‘Income - Applicant 2’ screen
Note: Where you are updating the PY income for both customers, repeat this step to update the PY income for the other customer as well.enter the income details for the appropriate tax year in the ‘Earnings’ field.
Note: Where you are correcting an income amount which was captured in error, for example entered in the ‘Self Employed Profits’ field instead of the ‘Earnings’ field, delete the amount that was entered in error and leave the field blank. Do not replace the figure with ‘£0.00’. You must then enter the correct amount in the correct field, selecting the appropriate status.
Note: Some employers include expenses and benefits on the employee’s P60. The value of these benefits is not included in ‘Earnings’ but in ‘Benefits in Kind’. Customers may need to make further enquiries with their employers to establish the corect earnings figure, and enquire whether their emplyer includes BIK in the payroll.
Note: Real Time Information (RTI) was introduced from April 2014. Income type ‘R’ denotes income has been recorded from RTI. Where you enter or change the amount so that it is different to the RTI amount held, the income status will automatically change to ‘A’. Where there are no RTI earnings amounts held and you enter an income, the status will automatically be set to ‘A’. You will not be allowed to change the income.
If the income provided is estimated income
select ‘E’ from the drop down menu
select ‘OK’. You will be taken to the ‘Amend Finish’ screen
Note: If the ‘OK’ button is not available, make the changes on the ‘Income’ screen and then go to another screen and select ‘OK’ on that screen.do not complete the ‘Amend Finish’ screen at this point, just return to the guidance you were previously following.
If the income provided is actual income
select ‘A’ from the drop down menu
select ‘OK’. You will be taken to the ‘Amend Finish’ screen
Note: If the ‘OK’ button is not available, make the changes on the ‘Income’ screen and then go to another screen and select ‘OK’ on that screen.do not complete the ‘Amend Finish’ screen at this point, just return to the guidance you were previously following.
Step 3
On the ‘Applicant Details’ screen
select either ‘Inc1’ if you are updating the PY income for customer 1 or ‘Inc2’ if you are updating the PY income for customer 2 on the toolbar. You will be taken to the ‘Income - Applicant 1’ or ‘Income - Applicant 2’ screen
Note: Where you are updating the PY income for both customers, repeat this step to update the PY income for the other customer as well.enter the new income in the relevant field in the ‘Income Details’ box
select ‘E’ if you have been provided with estimated income or ‘A’ if you have been provided with actual income in the relevant checkbox next to the updated income
select ‘Continue’
do not select ‘Process’, ‘Store’, or ‘OK’ at this point, just return to the guidance you were previously following.