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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Backdating: backdating (all): disability - backdating eligibility (Info)

A customer can qualify for Working Tax Credit (WTC) due to their disability where

  • they work at least 16 hours a week

and

  • they have a mental or physical disability which puts them at a disadvantage in getting a job

and

  • they satisfy the qualifying benefits test

If there was no qualifying disability benefit in payment on or before the claim for WTC was made and no qualifying children were included on the claim, the claim for WTC will have been rejected. For details of qualifying disability benefits, follow the guidance in TCM0122040.

Where the qualifying disability benefit is subsequently awarded, then a new WTC claim can be backdated to the latest of the following dates

  • the date the qualifying benefit became payable

or

  • 31 days prior to the date the claim for the qualifying disability benefit was made

or

  • the first date the customer would have been entitled to Working Tax Credit (WTC), if they met the qualifying benefits test for the disability element.

Note: New WTC claims recorded as received before 06-04-2012 can be backdated 93 days prior to the date the claim for the qualifying disability benefit was made, if that was later than the date the qualifying benefit became payable.

Example 1

  • Claim to qualifying disability benefit made 13-02-2012.
  • Customer starts remunerative work 05-09-2011.
  • Claim to qualifying disability benefit awarded on 11-06-2012. Entitlement given from 17-10-2011.
  • Customer makes a new claim to WTC on 20-06-2012.
  • Backdating the new claim should be restricted to 13-01-2012, 31 days prior to the date the qualifying benefit was claimed.

Example 2

  • Claim to qualifying disability benefit made 02-02-2012.
  • Customer starts remunerative work 12-03-2012.
  • Claim to qualifying disability benefit awarded on 26-04-2012. Entitlement given from 02-02-2012.
  • Customer makes a new claim for WTC on 03-08-2012.
  • As the claim has not been received within 31 days of the decision being made, the claim can not be backdated to the date the qualifying benefit became payable. The new claim should be backdated 31 days from the date it is received, if qualifying conditions are still satisfied at the earlier date.

Note: To qualify for backdating in respect of a WTC claim received before 06-04-2012, the customer must make the claim for WTC within 93 days of the date they were notified of the decision to award the qualifying disability benefit. To qualify for backdating in respect of a WTC claim received on or after 06-04-2012, the customer must make the claim for WTC within 31 days of the date they were notified of the decision to award the qualifying disability benefit.