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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to calculate responsibility end and start dates when the failed customer is given responsibility for the child or young person

Step 1

There are two different scenarios, ensure you follow the correct one.

If the existing and failed customers have made an agreed election date, go to .

If the existing and failed customers have not made an agreed election date, go to .

Step 2

In this scenario

  • the date responsibility for the child or young person will end in the existing claim is the day before both customers elected that the failed customer became responsible for the child or young person
  • the date responsibility for the child or young person begins in the failed customer’s claim will be the later of

    • the child’s or young person’s date of birth
    • 31 days prior to the date the child or young person was removed or excluded from the failed claim

    or

    • the day after the existing customer stopped being responsible for the child or young person.

    Note: The only exception to this is when responsibility for the child or young person in the existing claim ends during a previous tax year that has been finalised. In this case, responsibility will start and end in the current tax year on 06-04-YYYY.

Step 3

If the existing and failed customers have not made an agreed election date and there is no ongoing ‘shared care’ for the child or young

In this scenario

  • the date responsibility for the child or young person will end in the existing claim is the day before the failed customer became responsible for the child or young person
  • the date responsibility for the child or young person begins in the failed customer’s claim will be the later of

    • the child’s or young person’s date of birth

    or

    • 31 days prior to the date the child or young person was removed or excluded from the failed claim.

    Note: The only exception to this is when responsibility for the child or young person in the existing claim ends during a previous tax year that has been finalised. In this case, responsibility will start and end in the current tax year on 06-04-YYYY.

Note: ‘Shared care’ is where it has been shown that the child or young person ‘normally lives with’ both customers irrespective of the hour/day ratio. Backdating is not applicable in these cases.

If the existing and failed customers have not made an agreed election date and there is ongoing ‘shared care’ for the child or young person 

  • the date responsibility for the child or young person will end, in the existing claim, is the day before the failed customer made the claim
  • the date responsibility for the child or young person begins, in the failed customer’s claim, is the date the failed customer made the claim

Note: Where there are competing claims for CTC, if the child or young person normally lives with both the existing and failed customers, irrespective of the hour/day ratio there is ongoing ‘shared care’ for that child or young person. We cannot backdate child responsibility decisions when there is ongoing shared care.