Terms & Conditions

[Anonymous]

Would all tax Credits where a child reaches 1, 16, or 19 mean a change to the amount paid?

All the proforma 2’s that I have received back do not show any changes when my records show they should and I have just had an award letter from a customer with a child who will be 16 next January but again there does not appear to be a change in their award.

How can I be confident the award is correct?

[lesleyb]

I have a few proformas that have payment frequency as ‘one off’. I cannot get my head round this and cannot find any notes in the manual.

If it meant what it says a ‘one off’ payment it would be ok, but I am being given two amounts!!!!!

Help :15:

[janish]

a. Add amount in Inintial CTC payment box to the amount shown in the first Revised payment box.
b. Work out the number of days between 6/4/03 and the date in the date of change box BELOW the first Revised payment box.
Divide the total at a. by the number of days at b. and multiply by 7. This is the amount payable for the first period of the award.
c. Work out the number of days between the day after the date of change as used above and 5/4/04, add 1 for the leap year. (assuming this period covers Feb 04)
d. Divide the Revised payment amount shown BELOW the date of change box used above by the number of days at c. and multiply by 7. This is the amount payable for the second period.

Hope this helps

[Mark]

My current understanding is that any Child Tax Credit award would change when a child becomes one yr old (because the extra baby amount would end). This would be a mid-year change in the award. Similarly, if a child becomes 19yrs old they cannot possibly be a dependant child anymore so therefore this would be a mid-year change too. But when a child becomes 16 there would only be a change to the CTC award mid-year if the child was not in full-time non-advanced education. Because many 16yr olds will still be at school or college up to A-Level standard this means that the CTC award will be unaffected. I think this is why so many proforma 2’s have no mid-year change on them. As far as Working Tax Credit goes I haven’t seen a single case yet where the award changes mid year because children reach a certain age (maybe there won’t be any?).

Lesley – you need to add the “one off” amount to the figure in the 1st revised payment box to get the total CTC being paid for the first period. Divide this total by the number of days from 6 April 2003 to the date in the Date of Change box. Multiply this by 7 to get the weekly to take into account for the first period. For the 2nd period take the figure in the 2nd revised payment box and divide it by the number of days left in the year (i.e. 366 minus number of days in first period). Multiply this by 7 and this will give you the weekly amount for the 2nd period. Take a look at Case Study E in the manual to get a better idea.

[Mark]

I see Janis just beat me to it!

[lesleyb]

Thanks to you both. However, my proformas do not have the same details on them as Case Study E.

I have an initial CTC of 153.24 ‘one off’, date of change 28.4.03 and revised payment of £1837.80. Payment frequency 4wkly. If you compare this to Case Study E – I have no details after the 17th row. This is where I am confused. How do I calculate the second period? Is there a second period? Sorry for being so dumb :15:

[Mark]

It seems in your case that the 1st period is so short that it is covered by the one off payment only (the £153.24). I assume therefore that this must be the amount to take into account between 6/4/03 and 28/4/03. If I am right about this the £1837.80 should therefore be taken into account from 29/4/03 to 5/4/04. So:

1st period:

6/4/03-28/4/03 = 23 days
£153.24 / 23 days = £6.6626
£6.6626 X 7 = £46.64 to take into account

2nd period:

29/4/03-5/4/04 = 343 days
£1837.80 / 343 = £5.3580
£5.3520 X 7 = £37.51 to take into account

[lesleyb]

Thanks again Mark. I suppose they can’t give us every scenario. :22:

[Anonymous]

Would a “pop up” program that calculates the number of days between any Start and Stop date be useful for administering these Tax Credit predicted changes ?

keithB

[Anonymous]

How about this scenario – I have a proforma 2 with ‘one off’ payment of 66.41, revised payment of £1323.40, date of change 30/3/04 and further revised payment of £2046.93. Following the handbook this gives wkly income for the second period of several thousand pounds.

This is not an isolated case – most proforma 2s returned had no predicted changes, and the ones that have all have change dates in March and April 04 (not matching the households DOB changes), with similar ridiculous results in terms of income. Has anyone had similar problems or a solution?

:15:

[Mark]

Tony – now that the weather is improving you should consider that the returned proformas are highly combustable. Excellent for getting a stubborn barbecue going.

[Mark]

Tony – a slightly more sensible answer now. We too have lots of proforma 2’s with the date of change in March or April 2004 where the revised payments run into several thousand pounds. We just can’t work them out at all so I guess there is no option but to ring the IR helpline. We will be rolling dice to work out what the telephone number is.

Incidentally, most of these proforma 2’s arrived this morning (our 2nd batch). We also got back well over a thousand “on system but not yet procesed” ones. Fun, fun, fun.

[Author]

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