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    Has anyone had something similar to this, and how did you treat their income?!! :

    Award letter sent to claimant on 31st March 2004, revising WTC award for 6.4.03 to 5.4.04

    Amount due: £289.42
    Paid: £3569.26
    Amount overpaid £3279.84

    Fair enough, however, the letter goes on to say that from 29.3.04 WTC would be paid by the employer at a rate of £9.97 per day!

    The assessor has contacted the IR to find out if these payments stopped after 5.4.04 and they have been told that:

    “Rang the IR and they confirmed that as from the 06.04.2004-their wtc changed again

    Their annual award is £288.35
    Weekly amount is £69.79
    Daily award is £9.97

    The daily award changed to £1.15 for the period 02.05.2004-12.05.2004 although the annual award stayed the same.

    The daily award changed again to £9.90 wef 12.05.2004 and this is the same for the remaining financial year.”

    So this person is being paid £69.79 per week for the rest of the financial year on a total yearly entitlement of £288.35! So not only have they been overpaid over £3000 for last year, they will by next April have been overpaid a similar amount for this year!!

    My questions are 1) Why?!?! and 2) how should we treat the income – if we assess per guidance, we will be using a figure of just over £5 per week which is nothing like they are actually receiving!!!

    I think its another argument for just taking the weekly amount paid as the amount in the HB/CTB assessment…..

    😕 😕 😕 😕 😕 😕 😕


    Does the award notice refer to “amount you owe us to be collected from future years” (or similar)?

    I’ve seen quite a few of these. The basic idea is that it would cause hardship to recover the whole amount within one year. The alternative is to credit the award with a rebate from the recovered overpayment. Where this is the case they label it as above.

    In these cases I’ve been adding that rebated amount into the award and then calculating for HB. After all – they are actally GETTING the dosh.

    I’m currently seeking calrification on this point. I’ll post more if I discover anything.


    There is no reference to anything like this on the award letter. I don’t think its a case of causing them hardship – quite the opposite it seems…!! I have referred this case to the Adelphi and they have in turn referred it to the Inland Revenue – I’ll keep you posted!!!


    I’ve finally had a reply from the Adelphi about this:

    “I have finally been told that it can take about 46 days for a payment of tax credits paid through the employer to be stopped. Even though the claimant is no longer entitled to tax credits the payment through the employer continues until the paperwork is completed. Therefore, you have to take the amount paid as income until the claimant proves that it has ceased. In these cases, as it is only for a short period, you can use the daily amount to work out the weekly income or ask to see the wage slip which should confirm the amount paid whichcan then be used to work out the weekly income. ”

    Is it just me or is this advocating using the actual payments of Tax Credit received as income in the assessment of HB/CTB?!?!?!


    Scenarios that I have encountered recently include:

    1) employer continuing to pay WTC despite numerous letters from the IR requesting that payment should stop.

    2) IR insisting that payments being made via employer but claimant states not receiving any payments and pay slips confirm this

    Guidance manual does not give any idea what action to take in these instances.

    Is it any wonder that LA’s are ignoring DWP advice and making their own decision


    😕 I am glad that our counterparts in GB are finding tax credits confusing. They are no easier in Northern Ireland!

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