Legislation for Start Dates – Help!

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    Can someone point me in the right direction?

    Looking in the DWP “Guide to the New Tax Credits” it is possible to come up with two methods for deciding when TCs actually go onto the HB claim.

    [b:0731460a8a]Method 1 [/b:0731460a8a](from Key Points to remember section 12) describes payments being set back to the previous Sunday – coming into force on the Monday of the same benefit week.

    [b:0731460a8a]Method 2[/b:0731460a8a] (from Para 305 Section 3) says that it comes into effect from the following Monday.

    Now I know this has been raised before BUT has anyone actually found where either of these two scenarios is covered in a regulation?

    Help from Clairvoyants/faith healers/dowsers accepted (if containing specific reg).


    Peter – you want the manual to reflect the regs AND the regs to make unambiguously clear how an annual (and changeable) award gets taken into account in a weekly benefit? Surely by now you have worked out that this is not currently possible. Good luck!

    Kevin D

    Ok, I’ll take the bait. Or should that be “be” instead of “take”? Especially as I still haven’t got up to speed on tax credits…

    This response is made without having access to all of the SIs for amendment regs. If this has resulted in error(s) below, please feel free to point that out.

    The only regs where I have been able to find specific (relevant) reference to tax credits are:

    HBR 33(2B); HBR 40(9); HBR 68(1A); Sched 4 – para 58, Sched 5 – para 8(f)
    (sticking with HB refs)

    Assuming that I have interpreted the sum of the above regulations correctly, tax credits count as income for HB/CTB purposes with effect from the first day after any period of “[b:61b1fb3f59]of arrears[/b:61b1fb3f59]”.

    “[b:61b1fb3f59]Of arrears[/b:61b1fb3f59]” is counted as capital in accordance with HBR 40(9).

    There does not appear to be any provision within HB/CTB legislation for the date of a change in Tax Credit to take effect from a [u:61b1fb3f59]payment[/u:61b1fb3f59] date. No relevant changes seem to have been made to HBR 68 (with the exception of 7 April awards).

    HBR 33(2B) seems to be clear (?:21:?) that any tax credit should be counted as income over the period it is payable [u:61b1fb3f59]in respect of[/u:61b1fb3f59] (unless it falls under the “of arrears” disregard).

    At great risk to what little credibility I don’t have, an example follows taking into account the above:

    Tax Credit commences with effect from date “a”. Payment is made on date “c” and this includes “of arrears” for dates “a” to “b”. The effective date of Tax Credit, strictly for HB/CTB purposes, is the Monday following date “b”. “b” is the actual date of the change in circumstances – NOT the change in payment.

    The guidance (from hereonin referred to as “The Hindrance”) makes various references to Sundays etc, but this is not supported (as far as I can see) by changes to HB/CTB legislation.

    I’d suggest that any offering(s) in The Hindrance are irrelevant if not supported by legal provision(s). If there are in fact provisions to support The Hindrance, presumably the DWP won’t have any difficulty in offering cross references…..

    Oh well, at least it’s started the ball rolling – or should that be “marbles” + losing?

    Peter: Somewhere in the above, I think there is a kind of response to your original post……*cough*

    Kevin D (going back to the tranquil world of backdates….) :28::21:


    Thanks for that. A brave man indeed.

    I’ll go into the padded room with a printout of your post and some regs.

    I’ll let you know what I think when I come out.

    The balls are rolling, the wild geese are running – its all a bit much for me really.


    Hi Kevin,

    Can you send me your email address. I have a software tool I’d like you to look at. (latest experimental QuickCalc)


    The confusion caused by numerous amendments to individual TC awards and the sometimes inability of IR to provide LA’s with the required info leads me to look to the legislation for advice.

    Whilst I can see that we have legisaltive backup for the April 7th start date the only other legislation I can find is in SI 2002 No 2402.
    This covers issues such as treating arrears as capital and when to disregard for 52 weeks.

    As far as the income from TC’s is concerned it amends reg 33 and says ‘where the claimant receives payment of tax credit or working tax credit in respect of a particular week then the amount to be taken into account .. shall be the actual amount of such payment received’

    Following that piece of legislation would make our lives easier.

    That being so where is the legislative basis for the complicated and contrived methods of calculating weekly income from TC’s set out in the handbook? Is there legislation out there which I have missed?? The commisioners have made it clear that we cannot refer to guidance at appeal and can only rely upon legislation and case law.

    Please help!!


    Looking through the regs it appears that the reg quoted by Melvin was repealed (SI2003/478) before it started. (The hbinfo site doesn’t appear to be updated).

    Don’t ask me for a solution though! :26:


    Sorry that should be SI2003/[b:db82e51b2f]455[/b:db82e51b2f]

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