WTC canx date

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  • #20019

    On 08/12/08, HMRC cancelled WTC back to April 2008 due to a misunderstanding over hours worked. As they have already recd this income, WTC wld only be removed from HB claim from date notified i.e. 08/12/08.

    Under what circumstances could we go back and remove WTC from April 08, so that clmt does not lose out twice?


    From dwp guidance manual –

    W2.635 If an overpayment of tax credits has occurred during a period in which HB/CTB was also payable, and the overpayment is subsequently recovered, there is no provision in regulations to reassess the HB/CTB award for that previous period. There has been a Commissioner’s decision (CH 1450/05) regarding tax credits that have been overpaid but still accounted for as income in HB/CTB. The Commissioner agreed that, in line with HB and CTB regulations, WTC and CTC payments received are to be included in the assessment of the clamant’s entitlement to those benefits, even if they are overpaid and to be recovered.


    Just to add… The only way the claimant does not lose out, is if the tax credits overpayment is recovered from future payments during a period where the claimant continues to receive HB/CTB. So they’re counted as income when he receives them, but not counted when they are being recovered.

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