Reply To: Tax Credits and O/P HB

chris harvey

There’s more to this than meets the eye. If the NTC claim is processed and awarded before 7th April should not the claimant notify us so we can amend the claim before an overpayment situation arises. The proformas are a bit like the IS/JSA notifications we get via the RAT, they are a back up in case the claimant forgets to notify us themselves. Overpayments where the claimant has come off IS/JSA and not notified us are always classed as claimant error. Why should tax credits be any different?
However where the IR are buried in NTC claims and do not process them by 7th April a different situation arises. There is no overpayment in these cases because we only include the NTC payment from when it is paid, treating the arrears as capital.
The potential for confusion and misunderstanding that these new credits are creating is huge and I think things will get worse before they get better.