Reply To: Amendment 9 – Oh what fun!


There is now another theory doing the rounds that in many (if not all) cases the IR are not paying tax credit arrears in a lump sum. Instead, they are spreading out the arrears over the year by increasing the normal instalments. This should spark an interesting debate about whether these amounts are in fact arrears. If so, how the hell will be able to identify these sums (which are of course capital not income). Alternatively, lets say that they are not deemed to be arrears because they are just paid with the normal ongoing entitlement – where does that leave the status of the latest guidance? My view is that whether paid in instalments or in one go arrears are arrears. To conclude otherwise would mean that people will lose substantial entitlement to HB/CTB because of errors or delays at the IR. Is it possible for the Tax Credit saga to get any worse?