Reply To: Tax credits

chris harvey

I think Andy is on the right lines but things will be a trifle more complicated. Amendment 7 to the guide gave us lots of complex rules when calculating the amount of credit to be taken into account, but only dealt with awards made at the start of the year for a complete year. We are promised further guidance for claims made after the start of the year and I anticipate this guidance will be very mind boggling and confusing. I have tried to guess what advice me might be given in Sunita’s case but there are so many permutations. Imagine these scenarios – payment is made 4 weekly in arrears and according to the guide the cycle date is 23rd June. The payment made on the 10th June may be up to the previous cycle date of 26th May so the payment is all arrears. The income in this scenario may not be counted until the Monday after 23rd June as this is the date the next payment is actually made. However different rules would apply if the payment made on 10th June covered up to that date in which case most of it would be arrears but some of it may be ordinary (non arrears) credit. The next payment on 23rd June would be for a part amount of 2 weeks to bring the payments in line with the payment cycle. Different rules would apply if the claimant gets WTC paid fortnightly or WTC paid through an employer. The more I think about this, the more I feel a headache coming on! Tricia have a read of the new section 13 that was issued last week, you will definately doubt your own name after trying to absorb that lot!!