Tax Credits from April 2004 – new awards

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    Has anyone actually seen a new award yet?

    I have not heard of anyone yet who has either declared that their Tax Credit payments have begun again (not paid at end of last year because previously overpaid), or have had their new award. Is this nationwide? Have any Tax Credit renewals been processed yet? I hope we aren’t going to get a huge number all at once so tell me some have begun to “trickle through”.

    Julian Hobson

    See para 5 of A16/2004 – prepare for a deluge in May ?


    I’ve not seen a new award yet either but the helpine is good at informing me of the ‘ongoing award’ ie the amounts they are due to receive from 06/04/04 onwards.

    Claimants have been told to expect award notification from May/June so the only way to check any awards is to phone the revenue…surely additional calls they could do without.

    Maybe it will be smoother next year? 😆

    Huw Jones

    I understood that claimants were not going to receive notifiaction of provisional TC payments.

    lHowever have received a notice today purporting to be from 06.04.2004 to 05.04.2005 and including a predictable change in August ’04.

    Rang the ‘helpline’ for breakdown of the award only to be told that this was a provisional assessment and that Benefit Assessment staff are not to be given this information – because we are not to take provisional payments into account.

    I was told to use that last assessment letter issued to the claimant during 2003/04.

    have also seen a TC notification purporting to be a ‘summary’ of the award made for the period 06.04.2003 to 05.04.2004. I could not tie this back to the awards actually made in the previous year so rang the ‘helpline’. I was infoormed that this ‘summary’ statement was in actual fact a revision of the award made prior to April.

    Doeas anybody have any idea what is going on?


    I have seen a couple of ‘provisional awards’ that appear to be where the customer has had a change in income/circumstances in recent months. The award notices also give details of the payments for 2005/6??!! Does anyone know why they are doing this?
    I have a query on the award notice for this year though if anyone can help.
    The awards for both WTC and CTC have changed from the last award provided by the customer, for the calculation of HB/CTB.
    They have both reduced.
    The provisional award notice, dated 19.4.04 shows the new amounts for 6.4.04 to 5.4.05.
    There is an amount already paid and the first revised payment date is 21.4.04 (weekly paid CTC). I queried with DWP whether the change for HB/CTB should be from 12.4.04 (Monday after the 6.4.04 – beneficial change notified within 1 month) or from 26.4.04 (Monday after revised payment date) and was informed that it should be from 12.4.04.
    This disagrees with the Tax Credit guidance provided unless the provisional awards are different??????


    We have been told by the Inland Revenue that they are not issuing award notices where provisional payments are being made!!

    Is it correct to ignore any provisional payments made, continue to use the 2003/04 award rate and only recalculate when finalisation/renewal takes place? I assume it is only at this stage that we will know the actual award and any under or overpayments are calculated correctly?

    I think this is what A20/2004 is saying!


    The award notice above is definitely ‘provisional,’ it states this on the first page. It has been sent to the customer, the payments have been amended, how can I ignore it?????


    I have spoken to DWP this morning and they have confirmed that provisional payments should not be ignored. Whether we find out from claimant or IR we must action them. She did’nt know 100% whether award notices were being issued for them or not but they obviously are!

    I agree that according to the guidance received from DWP that the effective date of your change should be the Monday following the date of the final payment at the old rate i.e. 26/04/04.

    Sounds like they’re changing the rules again!


    As a Tax Credit claimant myself, I am pleased to say that I have received my new award letter for 2004 – 2005. The layout is a bit different, the awards are actually on page 4 now instead of page 3 and it does seem a bit easier to understand….!

    Have not seen any award letters from claimants yet though!

    Maybe I’m just lucky…..


    I have contacted the Helpline to find out why they are issuing notifications of provisional awards when we had been informed these were not going to be sent.

    In the case that I was querying, the claimant had received their P60 and had phoned the IR with this information before receiving their Annual Review Pack.
    The award letter states “We are reviewing the information you have given us. The amount of your award may change once we have completed our review but for now we will pay the amounts shown on page 4.”

    It took a long phone call to the Helpline (who were, credit were credit’s due, very helpful) to understand the 2004-2005 WTC payments. The award letter has 3 references to the employer payments with 3 different dates but the bottom line is they will pay £6.68 per day from 23/4/04.
    In addition the IR will make direct payments to the claimant of:-
    28/4/04 £6.48
    29/4/04 £5.57
    then £3.78 every 2 weeks until 27/5/04
    then £1.92 every week until further notice. (i.e. 10/6/04 – 31/3/05)
    So that’s straightforward then! This doesn’t seem to be getting any easier.

    The award letter also contains payments for 2005-2006, which seems pointless at this stage when the 2004-2005 payments have not yet been finalised, but I would guess that this section has been added to all award letters to avoid the current problem that the claimant (and LA’s) do not know what provisional payments are being made.


    I telephoned the helpline with questions about the new year awards and discovered the following:
    No 2004/2005 award notice is issued automatically, however a [b:02508fea8b]Provisional[/b:02508fea8b] award notice is issued if a CIC is dealt with and a declaration form has not been returned. The code shown at the bottom of the award notice is [b:02508fea8b]TC602(D)[/b:02508fea8b] (D for declaration required)
    If the declaration has been returned and the award is therefore [b:02508fea8b]renewed[/b:02508fea8b], the code shown at the bottom of the award notice is [b:02508fea8b]TC602(A) [/b:02508fea8b](A for actual). [b:02508fea8b]A finalised award notice for 2003/2004 [/b:02508fea8b]will be issued at the same time.
    If the customer has given [b:02508fea8b]estimated[/b:02508fea8b] income an estimated award notice will be sent – code shown [b:02508fea8b]TC602(E)[/b:02508fea8b] (E for estimated).
    [b:02508fea8b]A provisional finalised award notice [/b:02508fea8b][b:02508fea8b]may[/b:02508fea8b] also be issued for 2003/2004 in estimated case, as well.

    Hope this information helps – I am not aware of any information about these codes being issued by the IR to LAs, unless I have just missed them!

    Andy Simpson

    Would any Tax Credit experts want to help me with this one?

    Notification dated 03/05/04 (code on bottom TC602(C))

    Tax Credit award from 06/04/2004 – 05/04/2005

    [b:176ec982fc]Child Tax Credits[/b:176ec982fc]

    Full amount for period £2175.40
    amount already paid £390.34
    amount to be paid £1785.06

    payment of £37.60 due 07/05/04

    [b:176ec982fc]Working Tax Credit[/b:176ec982fc]

    Full amount for period £2298.92
    amount owed to be collected from future years £50.62
    amount already paid £328.30
    amount owed from previous years £161.16
    amount to be paid as shown below £1858.80

    from 01/05/04 £12.34 per day
    after 31/05/04 at £9.50 per day
    after 05/06/04 at £7.26 per day
    after 08/06/04 at £4.67 per day

    In addition to the WTC included in pay IR will pay
    on 10/06/04 £8.98 per day
    after 12/06/04 £4.67 per day.

    If anybody could tell me what amount of CTC/WTC to apply to the claim and from when I would be very grateful. I hope the answer is simple and it is just my stupidity that prevents me from seeing the obvious 😥


    I read all your posts and surprise surprise I am now confused! Circular A20/2004 said that if the claimant provided you with details from april 04 you should reassess, but otherwise carry on using the current rates. However after reading the posts on this topic do we use provisional figures or not? Also if we ring the helpline do we use the provisional figure they provide even though its not the claimant who have advised us?


    My colleague attended an Inland Revenue Tax Credit seminar on Friday 14th May. This was supposed to cover the annual review process. Example award notices were issued but only ones with the suffix (A) and at no point were they advised of estimated, provisional or any other different types of notices.

    My colleague took some examples of the few new award notices we’ve had through, with various queries, none of which could be answered by the IR representative. Without being too negative, what hope do we have of getting accurate info, or will we all be devising our own methods of assessment as far as tax credits are concerned,
    we have come up with our own –

    [i:ba1c80cdcf]Think of number, divide it by three, multiply by 16.3% and divide by the number of brain cells I have left! – cynical moi?![/i:ba1c80cdcf] 😆


    I spoke with the Inland Revenue this afternoon and was given a list over the telephone of all the notices that are currently being issued, from (A) through to (J).

    TC602(A) = an ‘actual’ award. A finalised award
    TC602(B) = Initial previous year award dealt with after year end
    TC602(C) = Current year amended by change of circumstances where a change occurs during provisional period
    TC602(D) = Current year ‘provisional’ award needing info to assess current year and finalise previous year. (carries no right of appeal)
    TC602(E) = Previous year finalised using actual income.
    TC602(F) = Previous year finalised using estimated income ‘as actual’
    TC602(G) = Previous year finalised using estimated income
    TC602(H) = Previous year finalised using ‘function managed finalisation’
    TC602(J) = Statement of Information. Issued during renewal period (carries no right of appeal)

    The IR representative was unclear on why/when some of these were issued & even what they meant, but did note that a customer might receive any number of these depending on the sequence of events leading up to the (A) finalisation notice.

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