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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Backdating: backdating (all): disability - backdating requests (Info)

Note: Before making any changes to a claim, you must follow the guidance in TCM0042260. This is to confirm if your changes can be made or if the claim needs to be sent to a specialist team.

Note: A change of circumstances received before 06-04-2012 can be automatically backdated up to a maximum of three months. A change of circumstances received on or after 06-04-2012 can be automatically backdated up to a maximum of one month.

A change of circumstances or a correction can be backdated up to a maximum of one month except in the following circumstances

  • where the change of circumstances or correction results in a reduced or ceased award
  • where a customer states that a disability or severe disability element of Child Tax Credit (CTC) should be included in an awarded tax credits claim on the basis of a claim made to a qualifying disability benefit which has now been decided. To qualify for this element being backdated by more than one month, the customer must notify Tax Credit Office (TCO) within one month from the date the disability decision was made. For details of qualifying disability benefits, follow the guidance in TCM0122040.

Backdating of disabled element requested on an awarded tax credits claim

The disability element can be backdated by more than one month only where the customer notifies the disability decision within one month from the date the disability decision was made. If notification of the disability decision is made within one month, the disability element can be backdated to the latest of the following dates

  • the date the qualifying disability benefit became payable
  • one month prior to the date the qualifying benefit was claimed

or

  • the date the customer became entitled to tax credits.

Follow the relevant Changes guidance.

Note: The date the customer became entitled to tax credits could be

  • in the case of a Working Tax Credit (WTC) claim, the date they started to work at least 16 hours a week and met the remaining tests to qualify for the disability element. For details, follow the guidance in TCM0122040.

or

  • in the case of a WTC claim, where the disability element is being added for the customer, or a CTC claim, where the disability element is being added for a child, the date the claim was made or treated as made.

Example 1

  • Claim to qualifying disability benefit made 09-03-2012.
  • Tax credits claim received and awarded 20-04-2012. The entitlement start date is 20-04-2012.
  • Claim to qualifying disability benefit awarded 03-09-2012,
  • Customer notifies us of qualifying disability benefit decision on 28-09-2012,
  • Disability element can be included from 20-04-2012 and a restriction should not be applied,

Example 2

  • Claim to qualifying disability benefit made 12-01-2012.
  • Tax credits claim received and awarded 16-02-2012.
  • Claim to qualifying disability benefit awarded 11-06-2012.
  • Customer notifies us of qualifying disability benefit decision on 28-09-2012.
  • Disability element should be included from 28-08-2012.

Backdating requested on a WTC claim

A customer can qualify for 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

For details of qualifying disability benefits, follow the guidance in TCM0122040.

If a qualifying disability benefit is awarded, then a WTC claim can be backdated to the date

  • the customer first qualified for the disability benefit
  • 31 days prior to the date the customer made a claim for the qualifying benefit, if that was later

or

  • the date the customer first satisfied the conditions of entitlement for the disability element, if that was later.

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 the decision to award the disability benefit was made. 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 the decision to award the disability benefit was made.

There is an Action Guide for this subject, select TCM0022200 to access it