Toolkit

Reference materials: Tax credits 'Inside track'

Claims and processing

Appointees: Representatives asked for clarification about the role of appointees. As distinct from authorised agents and intermediaries, appointees are given a legal right to act and will actually make a claim on behalf of someone who is unable to do so themselves (and cannot sign their own declarations, etc). This also means that all payments and correspondence will normally be made to the appointee. If a customer understands the Declaration on the claim form and can sign it themselves (even if they need help in translating the questions and content into another language), then they should do so and the appointee process is not appropriate for them. More details can be found in the HMRC guidance on appointees.

[TCCG, response 28 July 2009]

Withdrawing from the tax credit system: Representatives queried whether it is possible to withdraw from the tax credit system. HMRC stated that legislatively, it is only possible to withdraw from an ongoing tax credits claim before a decision has been made on the claim. For renewals, the 'window' would be the period before HMRC make a decision on the renewal claim.

HMRC currently operate a clerical process where claimants can request to withdraw from the tax credits system. Work is ongoing to create a 'window' where the tax credits computer can deal automatically with requests to withdraw from the tax credits system. It is hoped to complete the work by April 2010 but much of the detail is still to be finalised.
HMRC's intention is that if claimants request to withdraw from the tax credits system before any provisional payments are made, HMRC not make provisional payments. In the normal renewal period, they finalise the previous year’s claim but not renew the claim for the current year. This will mean that the claimant has witthdrawn from the tax credits system.
If the claimant requests to withdraw from the tax credits system after provisional payments have been made but before a decision has been made to renew their claim, they will have to pay back the provisional payments they have received. However, HMRC should advise that they could renew their claim and continue to receive payments and then request to withdraw in the next 'window' before provisional payments are made, if they still wish to do so for any reason.
[Victoria Todd, LITRG, response 13 July 2009]

National insurance numbers: Representatives asked HMRC for more information about the changes made by regulations (SI 2009/697) regarding National Insurance numbers. HMRC confirmed that a local Jobcentre Plus office will still carry out evidence of identity interviews, and (where the individual can prove their identity), DWP will tell HMRC and they will then process the claim using a Temporary Reference Number. HMRC states that this full process still needs to be followed so that they do not pay tax credits to someone who cannot prove who they are. It does not mean that a claim can be processed straight away ahead of any interview and without a NINO or a Temporary Number. Any delay in this process (arranging interview dates, etc) would lead to a delay in the payment of tax credits.

[Victoria Todd, LITRG, response 8 April 2009]

Delays in processing child benefit/child tax credit claims: Representatives queried the delays in some CB and CTC cases where the TCO have told advisers that there has been a recent change in processes and HMRC now have to make contact with another EU country to confirm details. HMRC have provided the following as a list of those cases where they need to liaise with the authorities of another country:

Customers arriving in the UK from another EEA member state:
Claim received, customer employed and children still resident abroad with a third party;
Claim received, customer employed, children still resident abroad with other parent;
Claim received, customer not employed but partner employed under legislation of other member state (OMS), children living in UK;
Claim received and there is an overlap of family benefit entitlement involving the UK and the OMS;
Claim received, customer or partner is receiving a contributory benefit from the OMS;
Claim received and there is entitlement to family benefits from the UK and more than one OMS;
Any of the above where reimbursement of family benefits paid by the OMS can be repaid from arrears of UK child benefit;
Any of the above where there is entitlement to family benefit from the UK and the OMS, but the OMS are competent to pay full rate benefit and the UK must consider paying the difference (known as a supplement).
Customer departing from UK:
Customer has been posted abroad within EEA and is continuing to be insured under the UK social security scheme (i.e. liable for Class 1 or Class 2 contributions), partner employed under legislation of OMS;
Customer leaves UK and requires ‘letter of cessation’ so family benefits can be paid by OMS;
Customer leaves the UK and there is an overlap of child benefit entitlement involving the UK and the OMS;
Family leave UK for EEA member state, customer in receipt of a UK contributory benefit partner employed;
Family leave UK for EEA member state, customer in receipt of a UK contributory benefit
Following the death of one or both parents a claim is received from the person looking after the children, who are living in another EEA member state;
Any of the above where the OMS is the competent authority to pay family benefits and the UK requires reimbursement;
Any of the above where the UK is competent to pay a supplement only.
Other enquiries:
Recovery of an overpayment of family benefit incurred in the OMS from current entitlement to UK child benefit;
Any ad-hoc enquiries that may be needed to decide on entitlement under the EC regulations;
Enquiries to confirm the educational establishment being attended by the children living abroad;
Letters/E model forms received from the OMS where they have instigated enquiries.
Please also note that where a customer has left the UK and moved to another member state which is paying them family benefits, if they have incurred a recoverable overpayment of UK family benefits, HMRC can contact the OMS to ask them to recover from any family benefits payable by them.
[Victoria Todd, LITRG, response 24 March 2009]

Pre award delays: Representatives have raised a number of cases where awards are delayed up to several months. Some of these cases have occurred because a case has been sent to compliance due to a verification failure. HMRC responded that compliance aim to carry out such checks within 10 weeks. Representatives raised the issue again at the November TCCG and gave examples of how this was affecting claimants by forcing them out of work when they could not pay childcare for such a long period or in some cases getting into debt and defaulting on rent.

HMRC have assured representatives that compliance activity would be carried out as quickly as possible. There are special procedures in place that should alert Compliance Officers to any cases that have come via the fast track from Job Centre Plus. This means these cases will be risk assessed immediately. Pre award compliance checks on all cases will continue under normal timescales if deemed necessary.
[Victoria Todd, LITRG, response at TCCG 16 October 2008]

Fast Track claims: Representatives asked what claimants who have had their tax credit claim fast tracked by JC+ should do if no payments received within 7-10 days. HMRC stated that in such instances, claimants should contact the tax credits Helpline. It is standard practice for TCO to monitor all fast track claims daily and pursue any further information needed by telephone (where possible) until the claims have been processed. Where a customer calls the Helpline, the operator will take any required information from them, if possible, in order to process the claim. Although it is preferable for customers to contact the Tax Credits Helpline in such instances, if a customer does return to the JobCentre Plus office, advisers there also have an existing escalation route contact to TCO if needed.

[Jane Hayball, LGA, response 20 May 2008]

Lost claims: Representatives queried what happens when a claim is lost and has been sent by registered post. HMRC confirmed that it is possible in such cases to make an off system backdated payment under processes for 'establishing the date of an earlier claim'. More information is available in the tax credits manual.

[Victoria Todd, LITRG, response 16 August 2007]

DWP fast track portal: TCCG confirmed at the July consultation group meeting that the DWP portal had closed and that DWP staff had reverted to using paper based methods of passing on information. The portal will be closed indefinitely.

[Victoria Todd, LITRG, response 20 May 2007]