Change to Tax Credit Payments??

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  • #19988
    daveyboy
    Participant

    At present our understanding is that Tax Credits are paid weekly or four-weekly. All in arrears up to and including the day they are paid.

    Lovely – easy to understand and everyone happy with that so obviously it couldnt last. 8)

    We have received a few awards recently with some odd payment details…

    Example – New Tax Credits claim dated 17/9/07. backdated 3 months. Lump sum arrears payment on Wednesday 19/9/07, first normal weekly payment also Wednesday 19/9/07, following payment Monday 24/9/07 with ongoing payments every following Monday…

    This didnt seem right as surely the first weekly payment should be on 24/9/07…So a phone call to HMRC later and info gained that weekly payment on 19/9/07 covered period 17/9/07-23/9/07, and the payment on 24/9/07 covered 24/9/07-30/9/07…ie. in advance. 🙄

    Has anyone come accross this before? Is there a circular I have missed? Any ideas?

    Thanks!!

    #1715
    Andy Thurman
    Keymaster

    imho….

    [quote:6dac8baff0]So a phone call to HMRC later and info gained that weekly payment on 19/9/07 covered period 17/9/07-23/9/07, and the payment on 24/9/07 covered 24/9/07-30/9/07…ie. in advance. [/quote:6dac8baff0]

    I’m shocked that you got any info of that kind from HMRC – as I’ve understood it, the tax credit payments are merely instalments of an annual award (rather than covering specific dates).

    It is only in the HB/CTB regs that we get the instruction to treat payments in the way that we do (wkly/4wkly in arrears).

    So, in the example given, ignore the lump sum, payment on 24/9 effective from same date (covers 18/9-24/9) & your call re payment on 17th – treat as regular payment wef 17/9 or deem as arrears & ignore.

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