Reply To: HELP!!!!


Generally, my view is that in calculating tax credits we need to forget (momentarily!) that we are HB/CTB officers. The fact that we are from a HB/CTB background probably makes it more difficult for us to accept than would be the case for people picking this up for the first time.
We are in danger of spending too much time in trying to fit square pegs into round holes! Sadly, we can no longer apportion income into neatly rounded figures that we have become accustomed to.
The facts are that the systems are different. Admittedly, trying to explain to a customer is going to be very difficult but unfortunately this is what we have been given.

Is anyone certain as to whether or not this example is a part-year award or an award with an in-year change of circumstances?

If this is indeed a part-year award, you cannot calculate it as there are no insructions (as per Para 1302).
Assuming the latter n.b. in-year change, you would proceed as per the instructions.

(a) HB/CTB effective date for child is the Monday after the 19th birthday i.e. with effect from 22/12/2003

(b) HB/CTB effective date for NTC is the Monday after the change of circumstances (COC). Remember that the COC is not the event which led to the change – it is the COC relating to the payment dates. In the case of 4 weekly payments, the COC is the day after the final payment (09/12/03) i.e. effective from 15/12/2003.
£1403.52 divided by 247 days (6/4-8/12) = £39.76.

It may not sit comfortably but that is it!

Remember that there is no such thing as a weekly or monthly tax credit award – payments are merely a method of achieving an annual lump sum.