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HMRC internal manual

Tax Credits Manual

HM Revenue & Customs
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Payment - overpayments (F-P): Overpayments - four-week run-on - post-finalisation of payments (Info)

Customers whose working hours drop to fewer than 16 weekly or customers who completely stop work may have their entitlement to Working Tax Credit (WTC) extended for up to four weeks from the date this happens. This is known as the ‘four-week run-on’.

When a four-week run-on payment has been made, you must check the amount calculated by making a new calculation using the previous year (PY) income. You’ll complete this check once the award version has changed to ‘Final Act’. This means that the award has been finalised using actual income.

To complete your check you must

  • compare the original calculated run-on payment against the new calculation
  • issue any underpayment, if applicable
  • record your findings.

Note: If the customer was entitled to the Childcare element of WTC, this will be included in the four-week run-on payment.

Note: Customers cannot receive the four-week run-on if, before 6 April 2007, their working hours dropped to fewer than 16 weekly or if they stopped work.

There is an Action Guide for this subject, select TCM0228100 to access it