advantageous /disadvantageous changes LHA

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  • #38405
    DARRAN PIKE
    Participant

    Can anyone tell me how they are dealing with the following and if this is the right way to go about it;

    The customer has had one change i.e. baby born but, for us, it needs to be split into both advantageous and disadvantageous parts:
    Technically any income associated with the child should be input from the date of birth and this used to then cause an overpayment but since now that Child Benefit and Maintenance are disregarded that only leaves any increase in Child Tax Credit.

    The applicable amount and LHA rate are advantageous, which if they told you about the birth more than 1 month after it occurred, should only be increased from the date notified.

    Then, if there was an overpayment, you could use underlying entitlement to reduce it…..

    Thanks

    #108232
    nickkeogh
    Participant

    Sounds about right but how long did they take to notify you about the birth? It’s reasonable to allow a fair bit of latitude for the late notification due to general upheaval etc following a new arrival. Following the arrival of things like the super-duper Atlas (empty files notwithstanding) and the “Tell us once” initiative then it’s also reasonable for the customer to think that by telling HMRC for CHB and TC purposes should be enough. Most auditors I’ve come across accept quite a lot of leeway for late reasons in these circs.

    I know that rules are rules and others may favour a more stringent approach to the late notification rules but my personal take on this kind of scenario is to be as favourable to the customer as I possibly can, especially as the regs allow you to.

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