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HMRC internal manual

Tax Credits Manual

Backdating: backdating (all): disability - backdating following award of qualifying disability benefit

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

Do not follow this guidance if dealing with a change of circumstance because the customer has recently informed us of an award of a qualifying disability benefit on an existing claim.

Background

A customer can request their Working Tax Credit (WTC) claim to be backdated more than 31 days where

  • a qualifying disability benefit is awarded
  • the entitlement to tax credits is dependent on a qualifying disability award
  • they claim tax credits within one month of receiving the decision to award a qualifying disability award.

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

  • the customer first qualified for the disability benefit
  • 31 days prior to the date the claim for qualifying disability benefit was made
  • the date the customer first satisfied the conditions of entitlement for the disability element.

Guidance

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian / Data Security Team for advice.

Step 1

If dealing with a new request for backdating due to an award of a qualifying disability benefit, go to Step 2.

If dealing with 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 4.

If dealing with returned correspondence, go to Step 5.

Step 2

Check whether the award is for Working Tax Credit (WTC) only. For how to do this, use TCM1000052.
Note: To be entitled to backdating of more than 31 days the customer’s eligibility for tax credits must have been dependent on receiving a qualifying disability benefit.

If the award is for WTC only

  • check NTC for the customer’s date of birth and the number of hours they work. For how to do this, use TCM1000053
  • go to Step 3.

If the award is for CTC only or both WTC and CTC,  apply backdating up to 31 days, follow the guidance in TCM0022100.

Step 3

Consider whether the customer would have been entitled to WTC without the need to qualify through disability, follow the guidance in TCM0114120.

If the customer would have been entitled to WTC without qualifying through a disability benefit, apply backdating up to 31 days, follow the guidance in TCM0022100.

If the customer would not have been entitled to WTC without qualifying through a disability benefit

  • issue TC1033 to the customer
  • set a BF date for 30 days
  • update Household Notes with message BZ02 from TCM0156040. For how to do this, use TCM1000001.

Step 4

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 5.

If no reply received to enquiry following BF period or the returned correspondence is incomplete

  • update Household Notes with message BZ27 or 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 5

Check the information provided by the customer.

If all the required information has been provided, go to Step 6.

If all the required information has not been provided

  • issue TC1033 to the customer with form TC664 to tell them which information is required
  • update Household Notes with message BZ02 from TCM0156040. For how to do this, use TCM1000001
  • set a BF date for 15 days.

Step 6

Check the information provided by the customer for the date they were notified of the decision to award the qualifying disability benefit.

If the notification date is within 31 days of the customer claiming tax credits, go to Step 7.

If the notification date is more than 31 days of the customer claiming tax credits, apply backdating up to 31 days, follow the guidance in TCM0022100.

Note: For tax credit claims received before 06-04-2012 the effective date for automatically backdating is up to a maximum of 93 days.

Step 7

Using Access to DWP Data (ADD) System to check the information provided by the customer and confirm the award of the benefit and the date it became payable. For how to do this, use TCM1000014.
Note: If you have access to Common Enquiry Service (CES), this can be used as an alternative to ADD, or additionally to check any discrepancies between ADD and the information provided by the customer.

If you confirm on ADD or CES that the award of the benefit and the date it became payable is the same as that provided by the customer, go to Step 9.

If you confirm on ADD that the award of the benefit is the same as that provided by the customer but the date it became payable differs by seven days or less

  • accept the date provided by the customer as being correct
  • go to Step 9.

If you cannot confirm on ADD that the award of the benefit or the date it became payable is the same as that provided by the customer or the date it became payable differs by more than seven days, go to Step 8.

Step 8

Phone DWP to confirm the details of the award of the qualifying disability benefit provided by the customer.

If DWP confirms the customer is in receipt of a qualifying disability benefit

  • make a note of
    • the benefit
    • the start date of the award of the benefit
    • when the customer was notified of the decision
      then
  • go to Step 9.

If DWP does not confirm the customer is in receipt of a qualifying disability benefit, apply backdating up to 31 days, follow the guidance in TCM0022100.

Step 9

Considering the information provided by DWP.

If the date the customer was notified of the decision to award qualifying disability benefit within 31 days of the customer first claiming WTC, go to Step 10.

If the date the customer was notified of the decision to award qualifying disability benefit was not within 31 days of the customer first claiming WTC, apply backdating up to 31 days, follow the guidance in TCM0022100.

Step 10

Note: When amending an effective date that will amend the child responsibility date and one or more children are an exception, refer the case to the Exception Team. 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) .

Consider the new effective date for backdating

If the new effective date requires forward dating, follow the guidance in TCM0022060.

If the new effective date requires backdating, follow the guidance in TCM0022040.

If the new effective date requires backdating and this cannot be done on NTC, follow the guidance in TCM0022320.