Young person cam chats - Backdating tax credits

The exception for carers is for those ‘entitled to carer’s allowance’ (CA) so includes an underlying entitlement.

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HMRC holds details of working hours as declared on the tax credit claim form, and wrote to couples working less than 24 hours, advising them that they would no longer be entitled to WTC.

The letter included details of the exception for incapacitated partners and asked claimants to contact HMRC if this applies to them.

However, childcare costs must be notified as HMRC will not know who qualifies under the new rule.

The HB/CTB rules have not been amended so additional tax credits will count as income, without any extra earnings disregard.

– two or more periods separated by less than 12 weeks that may be linked together; – periods on statutory sick pay before qualifying for contributory ESA; – periods on IB or SDA prior to conversion to contributory ESA; – payment pending an appeal; – entitled to a work-related activity or support component in HB/CTB; – would be entitled to a work-related activity or support component but for the other member being treated as not having limited capability for work (ie, failed to return questionnaire or attend medical); – main phase ESA.

One advantageous change from 6 April 2012, is that couples with children where the non-working partner is entitled to CA can now qualify for the childcare element for the first time.One person in the couple may work at least 24 hours and they qualify.Or the couple may work at least 24 hours between them, as long as one is working at least 16 hours a week.By contrast however, from April 2013, the disregard on an increase in income will be further reduced from £10,000 to £5,000.Tax credits were introduced partly to replace a ‘children’s tax credit’ which was an addition to the personal tax allowance for people with children.There is no qualifying benefit rule to allow extended backdating following an award of CA.

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