Annual Renewal tax credits

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  • #19979
    walmslm
    Participant

    On a recent(ish) training course we were advised that for an annual tax credit renewal we should only altered benefit from the Monday following the date the notification letter was issued to the customer at the earliest.

    Is this the procedure people follow?

    Is so what happens in the case where the customer has not yet received their renewed notification letter but the assessor has rung up the tax credit office themselves and been given the weekly instalments for the new year?

    Thanks

    #1700
    cbuck
    Participant

    Hmmm, yes, i must admit that we have been known to follow a similar principle here on the basis that it is unreasonable to take income into account before the customer knows about it. However that is not what the regulations demand. When HBR 32 came in it made clear that tax credit income was to be the amount of instalment received taken into account for the period the payment covers. It doesn’t say anything about it not applying to a period prior to notification.

    As I understand it the TC renewal letters are issued (subject to any HMRC system delays) at the time the new years awards are decided. There should therefore not be much of a difference between the notification and paid dates. Of course the first 4 weekly instalment could well mean going back to a date up to 4 weeks before the date of the letter. Ho hum.

    If the renewal isn’t done until September (not inheard of) you will just carry on using the provisional instalments shown on the previous year’s award notice for as long as they continue to receive them.

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