Reply To: Tax Credits – predicted changes


My current understanding is that any Child Tax Credit award would change when a child becomes one yr old (because the extra baby amount would end). This would be a mid-year change in the award. Similarly, if a child becomes 19yrs old they cannot possibly be a dependant child anymore so therefore this would be a mid-year change too. But when a child becomes 16 there would only be a change to the CTC award mid-year if the child was not in full-time non-advanced education. Because many 16yr olds will still be at school or college up to A-Level standard this means that the CTC award will be unaffected. I think this is why so many proforma 2’s have no mid-year change on them. As far as Working Tax Credit goes I haven’t seen a single case yet where the award changes mid year because children reach a certain age (maybe there won’t be any?).

Lesley – you need to add the “one off” amount to the figure in the 1st revised payment box to get the total CTC being paid for the first period. Divide this total by the number of days from 6 April 2003 to the date in the Date of Change box. Multiply this by 7 to get the weekly to take into account for the first period. For the 2nd period take the figure in the 2nd revised payment box and divide it by the number of days left in the year (i.e. 366 minus number of days in first period). Multiply this by 7 and this will give you the weekly amount for the 2nd period. Take a look at Case Study E in the manual to get a better idea.