Reply To: Late awards of the New Tax Credits


The point you make could also be applied to anyone who claims late and gets automatic backdating to 6 April: they too would be covered by the words “commencement of entitlement to [a tax credit] on 6 April”.

It seems obviously ludicrous that someone could be treated as possessing capital before they have received it.

But I think Reg 68(1A) has to be read in context and it would be quite reasonable in my view to assume that it only applies between 1 and 6 April. To avoid any doubt at all, the new paragraph (1A) could be revoked on 7 April so that any payment of tax credit assessed back to the start of the year on or after 7 April gets dealt with under the normal rules with no retrospective effect.