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HMRC internal manual

Tax Credits Technical Manual

Claims and Notification: Claim Effective Date and Backdating

The Tax Credits (Claims and Notifications) Regulations 2002, Reg 7

In certain circumstances a claim for a tax credits may be treated as having been made on an earlier date to that when it is received in an appropriate office. This is known as backdating.

The date the claim is backdated to is known as the claim effective date.

Both WTC and CTC components can be backdated a maximum of 31 days.

Note: Prior to 6 April 2012, backdating of new claims was 3 months.  From 6 April 2012, this was amended to a maximum of 31 days.

 

  • These limits cannot be extended except in the circumstances detailed in TCTM06104.
  • Automatic backdating can occur in certain circumstances, which are explained in TCTM06104.

Otherwise the claimant would have to provide the details of when they became entitled to tax credits, in order to obtain the backdating for up to 31 days.

Backdating automatically occurs apart from in the following circumstances:

  • The claimant or either claimant(s) are receiving Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, or Pension Credit
  • The claimant or either claimant(s) are only claiming Working tax Credit and haven’t received Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support allowance, or Pension Credit in the last 31 days.
  • The claimant or either claimant(s) are claiming both Working Tax Credit and Child Tax Credit, and have come off Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support allowance, or Pension Credit in the last 31 days.

 

Where backdating doesn’t automatically apply, the claimant will need to request backdating to a specific date up to a maximum of 31 days.

If the claimant becomes responsible for a child the claim will be backdated to the date responsibility started. If responsibility started more than 31 days before the date of claim the CTC will be backdated 31 days.

Otherwise the CTC will be backdated to the birth of a child. If the child was born more than 31 days before the date of claim the CTC will be backdated 31 days.

Note: They can inform HM Revenue & Customs (HMRC) of these details at any time up to the point that their award for the year is finalised, they would not have to put all this information on the claim itself. In effect, so long as they make a claim, which HMRC accepts, then the backdating can be triggered at any point once HMRC receives the necessary information in order to backdate.