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HMRC internal manual

Tax Credits Technical Manual

Entitlement: CTC entitlement: Late notification that a Qualifying Young person met the qualifying conditions from 1 September

The Child Tax Credit Regulations 2002, Regulation 4

Where HMRC are notified that a qualifying young person continued in full time non advanced education from 1 September following their 16th birthday, the young person element should be included in the award effective from 1 September.

This isn’t a change of circumstances as described in TCTM05000, nor is it a backdating matter and so it isn’t limited to the backdating provisions that actual change of circumstances are, as shown in TCTM0530.

This shouldn’t be confused with a young person who is returning to full time non advanced education after a break. Where they are returning to full time non advanced education after having a break from it, these will be treated as a normal change of circumstance described in TCTM05000.

The following examples will show the different times that HMRC is notified of the young person continuing in full time education and how the element should be included.

Example 1

Kate turns 16 on 30 June 2015 and continues to meet the qualifying young person conditions until the following 31 August 2015. From the 1 September 2015 CTC is no longer paid for Kate, but her mother does not realise payments ceased until the following February 2016 when she informs the Call Centre that Kate continued in full-time non-advanced education. As Kate continued to meet the qualifying young person conditions, that CTC element should be included in the award from 1 September 2015.

Example 2

Kate turns 16 on 30 June 2015 and continues to meet the qualifying young person conditions until the following 31 August 2015. From the 1 September 2015 CTC is no longer paid for Kate, but her mother does not realise payments ceased until she is completing her s17. She states that her circumstances are not correct because Kate remained in full-time non advanced education. As Kate continued to meet the qualifying young person conditions, that CTC element should be included in the award from 1 September 2015.

Example 3

Kate turns 16 on 30 June 2015 and continues to meet the qualifying young person conditions until the following 31 August 2015. From the 1 September 2015 CTC is no longer paid for Kate, but her mother does not realise payments ceased. She has already completed her s17 and received her finalised s18 decision on entitlement on 15 May 2016. Her Mother makes a further s17 declaration or statement on 15 July 2016, stating Kate remained in full time non advanced education. Because she has made a further s17 declaration prior to 1SD and because Kate continued to meet the qualifying young person conditions, HMRC should make a further s18(1) decision and include the young person CTC element from 1 September 2015.

Example 4

Kate turns 16 on 30 June 2015 and continues to meet the qualifying young person conditions until the following 31 August 2015. From the 1 September 2015 CTC is no longer paid for Kate, but her mother does not realise payments ceased. She has already completed her s17 and received her finalised s18 decision on entitlement on 29 July 2016. Her Mother requests a Mandatory Reconsideration on 15 August 2016, stating that Kate had remained in full time non advanced education. Because the s17 indicated all the circumstances were correct, HMRC made the s18(1) decision accordingly, but the reason for the MR states that Kate continued to meet the qualifying young person conditions. Because of this, CTC entitlement should have continued, and therefore HMRC should remake the s18(1) decision and include the young person element from 1 September 2015.

 

Please note that this guidance is to follow only:

• During CY where it is established that the YP continued in FTNAE from the 1 September. S16 is the appropriate power to use here when applying retrospective CTC entitlement to 1 September.

• In the year after this, where, ahead of, or during the making of the s18 entitlement decision, it is established that the young person continued in FTNAE from the 1 September in the previous year.

• By MR Officers handling a MR in response to any of the above two decisions. Providing of course that the MR is, or can be treated as made, on time.

 

The following example is where HMRC has been notified late that the child continued in FTNAE and met the qualifying young person conditions, but we cannot include the child from 1 September.

 

Kate turns 16 on 30 June 2015 and continues to meet the qualifying young person conditions until the following 31 August 2015. From the 1 September 2015 CTC is no longer paid for Kate, but her mother does not realise payments ceased. She has already completed her s17 and received her finalised s18 entitlement decision on 29 July 2016. Her Mother informs HMRC on the 15 October 2016 that Kate had remained in full time non advanced education. Because the s17 indicated all the circumstances were correct, HMRC made the s18(1) decision accordingly and no Mandatory Reconsideration was requested stating that Kate continued to meet the qualifying young person conditions. Therefore HMRC can only include the CTC from the 6 April 2016.