Recalculating weekly income from Tax Credits

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    In the financial year 2003/04, which was a leap year, we were dividing tax credit annual awards by 366 days then multiplying by 7 days to get the weekly income from TCs.
    As part of our year end process I am thinking of getting our IT system to take all weekly TC figures, divide them by 7, multiply by 366 (to get back to the annual figure) and then divide by 365 to get the new weekly TC figure from April 2004.
    I am of the opinion that unless we do this, claimants getting TC will be overpaid because there income will be less than it actually is.
    Is anyone else thinking of doing this?

    Huw Jones

    Simon, following your previous message on the issue of Tax Credit awards from April 2004 and what provisional payments are going to be made i rang the Inland Revenue.

    They confirmed that from April any CTC or WTC award to which an in-year overpayment recovery has been applied, will revert back to the last notified award.

    This will result in increases of instalments – where recovery is being made – and re-instatement of awards where instalments stopped entirely because of the overpayment. (I assume, of course that the CTC or WTC will only be re-instated where there is a continuing entitlement to it).

    I was also informed that any provisional payments made form April will have the annual up-rating applied to them – so it is impossible to know what the likley award of TC is going to be in ANY case after April.

    In light of the above I e-mailed DWP who advised me as follows (I Quote)

    “I cannot advise you on what will happen in April 2004. Regulations are currently being laid regarding the treatment of Tax CRedit as income when an overpayment fro the previous tax year is recovered from an award in the following tax year. A circular will be issued as soon as we have the details.”

    How are other Authorities going to handle this? Any advice will be welcome. 😕


    [quote:3b0c02fc19=”Huw Jones”]They confirmed that from April any CTC or WTC award to which an in-year overpayment recovery has been applied, will revert back to the last notified award.[/quote:3b0c02fc19]


    This is presumably where the overpayment was able to be entirely recovered during the period of the current award. Any outstanding overpayment would need to be offset against the new award. Wouldn’t it?

    Also – curious to know who you rang at the Inland Revenue?

    If you have a contact number or email for someone at InRev who can answer questions like that I’d be interested to hear from you. I’ve got a couple of questions about next year’s NTCs which I’d like to find an answer to before I rewrite the pdated quickcalcs.

    Either that – or you could ask ’em for me.

    I was just curious to know what was happening to the list of 4-week-payment-cycle-dates which was published last year. [Annex A Section 13 NTC guide]

    i.e. will they just continue to chug away every 4 weeks – 1st new pay date 26th April
    or will the cycle be reset so that the first date is 28th April again
    or do the fixed cycle dates not exist at all (as has been suggested)

    *Sigh* – I should get out more

    Huw Jones


    – yes, the question I posed was in relation to an overpayment that was to be recovered within this financial year. I must admit that I did not broach the subject of overpayments being carried forward in to the next fiancial year.

    The call was made to the helpline (so no specific contact), but the same query was made on two seperate occasions with the same reply on each occasion.

    I’m afraid that I haven’t heard anything re the 4 weekly cycle – although there was mention that the cycles we had were wrong anyway!


    Thank you to both Huw and Peter for your posts. If anyone is interested they were responding to my post on the attached thread

    Would anyone like to respond to my initial question on THIS thread! Thanks!


    Oops! Sorry to hijack your thread Simon.

    Bad manners for the new millennium.

    Now – if anyone can help with ignition problems on a Fiat Tipo I’d be very grateful….

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