Reply To: Tax credits hurt my head


I am making some assumptions here:

[b:f503cdf04d]Assumption 1.[/b:f503cdf04d] You have had this person on HB since april 03, and that you had a previous Tax Credit award notice detailing their entitlement from April to Dec.

[b:f503cdf04d]Assumption 2. [/b:f503cdf04d] Their level of award from April to Dec was higher than the CTC award mentioned in the latest award letter.

If this is correct then it seems to me that this claimant has had their entitlement to TCs reduced due to an overpayment in the earlier part of the year.

What I suggest you do is:

Draw a line under their entitlement at Dec 2003. Any assessment for TCs from April to Dec would still be correct, as they actually received the tax credits income during that period.

For the period from Dec to April 04, they have a revised entitlement to TCs of £716.91. (£7235.87 for year minus £6518.96 already paid)

Weekly award for HB = £716.91 div by 126 days = £5.69 per day / £39.83 pw.

Don’t get involved in the TC overpayment issue. The Inland Revenue have already sorted that out by reducing the award for the rest of the year.

All you need to do is work on the basis of the most recent TC award notice.