TCM0022320 - Backdating: backdating (all): manual calculation - backdating

Checklist

Before you follow this guidance make sure

  • you have the correct user roles to follow this guidance
  • you have access to the Access To DWP (ADD) system.

Reasons not to follow this guidance

You do not need to follow this guidance for cases where you can backdate the claim using the function amend effective date.

Background

This guidance is to be used on all claims that you cannot backdate on the tax credits computer using the function amend effective date.

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.

Note: If you are dealing with a claim where an exception marker has been applied to any of the children/young persons included in the claim or the customer is reporting a change relating to an exception contact the Exception Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) . (This content has been withheld because of exemptions in the Freedom of Information Act 2000) For how to check if the exception marker has been applied, use TCM1000314.

Step 1

If you are dealing with a new backdating request

Check the claim and household notes to establish the following information.

  • income details
  • start and end dates for all elements
  • change of circumstances that have happened
  • start and end dates of previous claims. For how to do this, use TCM1000249 and TCM1000427
  • go to Step 2.

If you are dealing with a reply to an enquiry, go to Step 6.

If you are dealing with an expired BF

  • check Household Notes to determine if the customer has phoned the Tax Credits Helpline with the information. For how to do this, use TCM1000067
  • go to Step 5.

Step 2

Check NTC for an IS, JSA (IB)/ESA (IR) or PC marker on the claim. For how to do this, use TCM1000198.

If an IS, JSA (IB)/ESA (IR) or PC marker is shown on the claim

Check ADD to confirm the customer or partner is in receipt of any of the following benefits during the backdating period

  • Income Support
  • Jobseekers Allowance (Income Based)
  • State Pension Credit
  • Income related employment and support allowance
  • Disability Living Allowance
  • Personal Independence Payment
    Note: From 08/04/13 Personal Independence Payment (PIP) will be introduced as a replacement for DLA for customers of working age (16-64 years of age). PIP will be made of two elements consisting of daily living and mobility and two levels of rates which are standard or enhanced. Customers under 16 and over 65 years old will remain on DLA.
    Note: For tax credit purposes, the Highest Rate Care Component of DLA is the same as the Enhanced daily living component of PIP, and will allow the customer to qualify for the Severe Disability element, so long as the other qualifying conditions are met. There is also an Enhanced mobility component of PIP, but this does not allow the customer to qualify for the extra element.
    Note: For tax credit purposes, the current low and middle rates of DLA (whether care or mobility) will be either standard daily living or standard mobility component of PIP, and will allow the customer to qualify for the Disability element so long as the other qualifying conditions are met.
  • go to Step 3.

If an IS, JSA (IB)/ESA (IR) or PC marker is not shown on the claim, go to Step 3.

Step 3

Consider the information you have gathered and the information provided on the letter or WAM.

If the customer has provided enough information to deal with their request, go to Step 7.

If the customer has not provided enough information to deal with their request, go to Step 4.

Step 4

Contact the customer by phone to ask them for the missing information. Follow the guidance in TCM0094080.

If you are able to contact the customer by phone and they are able to provide the missing information, go to Step 5.

If you are unable to contact the customer by phone or they are unable to provide the missing information

  • issue TC664 to the customer
  • update Household Notes with the message BZ26 from TCM0156040. For how to do this, use TCM1000001
  • set a BF date of 30 days.

Step 5

If the customer has replied to your enquiries by phoning the Tax Credits Helpline and the information is noted in Household Notes, go to Step 6.

If no reply received to enquiry following BF period

  • update Household Notes with message BZ27 from TCM0156040. For how to do this, use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037
  • take no further action.

Step 6

Check the information provided by the customer.

If all the required information has been provided, go to Step 7.

If all the required information has not been provided

  • update Household Notes with message BZ28 from TCM0156040. For how to do this, use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037
  • take no further action.

Step 7

Using the information you have, determine the amount the customer is entitled for the backdating period using the SEES Tax Credits Entitlement Calculator. For how to do this, use TCM1000089.

Note: New claims can be backdated to the date that the customer and partner in joint claims first became eligible for tax credits. From 06-04-2012 this may be up to a maximum of 31 days. For claims received before 06-04-2012 this may be up to a maximum of 93 days.

Note: When including a child responsibility date and one or more children are an exception you will need to refer the case to the Exception Team. Please ensure the child/children are exceptions before you transfer the case to the Exception Team (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

If the award is above the minimum amount that Tax Credits would pay

  • complete the manual payment form on SEES
  • send the referral to the manual payment team by email (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • issue the TC835, TC835A, or TC1206 to the customer
  • complete a manual award notice for any claim where the automated award notice doesn’t cover the backdated period. For how to do this, use TCM1000538
  • update Household Notes with the appropriate message BZ10 from TCM0156040. For how to do this, use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

If the award is below the minimum amount that Tax Credits would pay

  • issue TC835DM to the customer
  • update Household Notes with the appropriate message BZ22 from TCM0156040. For how to do this, use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037.