Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
Updated
, see all updates

Changes of circumstances: Backdating Disability and Severe Disability elements of WTC & CTC - Backdating Prior to 6 April 2009

Disability and Severe Disability elements of WTC - Backdating prior to 6 April 2009

The Tax Credits (Claims and Notifications) Regulations 2002, Reg 26 & 26A

If you are dealing with a report of a change of circumstances relating to backdating the disability and severe disability elements of WTC and CTC and notification of that change was received before 6 April 2009, you must follow this guidance.

WTC

The Tax Credits (Claims and Notifications) Regulations 2002, Reg 26

There are two cases where an increase in an award of the disability or severe disability elements of WTC can be backdated for more than 3 months before the date of notifying the change.

Case 1

  • A claim for WTC, including the disability elements, was made but the disability elements were not awarded because the claimant was not in receipt of a qualifying benefit (TCTM02510)
  • The claimant had, at the date of the original WTC claim, made a claim for a qualifying disability benefit that had not been determined
  • The claim for the qualifying benefit was later determined in the claimant’s favour
  • Notice is given of the change ( that the qualifying benefit has been awarded) within 3 months of the decision on the qualifying benefit

In these circumstances, the date of the notification of the change can be backdated to the first date the qualifying benefit was payable, or if later, the date the original claim was made.

Case 2

  • Notification was given on an existing award of WTC, of a change in circumstances that may result in an increase because of entitlement to the disability elements.
  • The disability elements were not awarded because the claimant was not in receipt of a qualifying benefit
  • The claimant had, at the date of the notification of the change in circumstances, made a claim for a qualifying disability benefit that has not been determined
  • The claim for the qualifying benefit was later determined in the claimant’s favour
  • A further notification is given ( that the qualifying benefit has been awarded) within 3 months of the decision on the qualifying benefit

In these circumstances, the date of notification of the change can be backdated to the first date the qualifying benefit was payable, or if later, the date the original notification was made.

CTC

Tax Credits (Claims and Notifications) Regulations 2002, Reg 26A

A claim for the disability element or the disability and severe disability element of Child Tax Credit can be backdated for more than 3 months if all the following conditions are satisfied:

  • a claim for the disability element or the disability and severe disability element of CTC was made, but not awarded because Disability Living Allowance was not in payment in respect of the child.
  • at the date on which the CTC claim was received by an appropriate office, a claim for Disability Living Allowance in respect of the child had been made but had not been determined.
  • the relevant claim for Disability Living Allowance was later determined in the child’s favour and within 3 months of the relevant claim for Disability Living Allowance being determined the claimant, or in the case of a joint claim, one of the claimants notifies the Board.

or

  • Notification was given on an existing award of CTC, of a change in circumstances that may result in an increase because of entitlement to the disability or severe disability element of CTC.
  • the disability elements were not awarded because the claimant was not in receipt of Disability Living Allowance in respect of the child
  • on the date of the notification, a claim for Disability Living Allowance in respect of the child had been made but had not been determined.
  • the relevant claim for Disability Living Allowance was later determined in the child’s favour and within 3 months of the relevant claim for Disability Living Allowance being determined the claimant, or in the case of a joint claim, one of the claimants notifies the Board.

In these circumstances,

the subsequent claim for CTC, including the disability or the disability and severe disability element, can be backdated to the first date that the Disability Living Allowance was payable or,

if later, the date on which the original claim to the CTC disability element or the disability and severe disability element was made/treated as being made (that is, the earliest date of entitlement to that element under the original claim).

For Example:

A claim for DLA for a child was made on 15 April 2003 but not determined before the date a claim for a disability element of CTC for that same child, was made on 17 July 2003. On 19 March 2004 DLA was awarded to the child and backdated to 15 April 2003. TCO are informed of that decision within 3 months of the date of the DLA decision, therefore, the disability element of the CTC award is backdated to the DLA award start date, 15 April 2003.