WTC overpayment

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    Change of WTC award:

    Award letter dated 22/01/04

    WTC due £2826.17
    Already paid £2881.33
    Amount overpaid £55.16

    Payment by employer from 20/01/04 your pay at the rate of £9.97 a day.

    If they have been overpaid why are they continuing payments?

    IR have said that this new rate starts on 20/01/04, but because the employer is paying the WTC they have no details of the last instalment at the old rate.

    Any ideas how to calculate this change for HB? Do we remove all WTC as they have been overpaid, and if so from what date??


    This is a good example of how LA’s have a hopeless task of trying to figure this stuff out. I suspect that although WTC entitlement has ended (because everything due is already paid) that some sort of hardship payment is being made. I don’t really understand what these hardship payments are and therefore I have no idea how to treat them in HB/CTB. I was at a meeting the other day with some Adelphi bods and they were reluctant to advise yet on what to do with these payments. Further guidance was promised soon though.

    So, basically, I have no idea!


    I too have come across this and have several “guesses”; this could be just a standard part of the notification that gives the daily rate (and how it is paid) : software error in the letter.
    Or it could be that “some” payments may still be made by the employer after they should have stopped (as yet I do not know of Performance Indicators for employers who pay Tax Credits as part of their payroll function!), whether these are hardship payments, errors or are actually paid I don’t know yet but I do need to know if I should be taking them into account as income.
    I have removed Tax Credits in some of these cases but I am not 100% certain that they will no longer be getting Wtc! Further comments expected & invited.


    My guess would be that this is a software error in the production of the letter. The daily rate of £9.97 is the old rate i.e.
    – the period 6/4/03 to 19/1/04 = 289 days
    – £2881.33 / 289 = £9.97
    and the new rate should be nil.
    If the IR letter to the employer says the same thing though, then the TC’s are going to continue to be paid.
    I think in this case I would leave the TC on the claim, on the basis that the IR have stated that payments are continuing at £9.97 per day, and ask the claimant to provide current payslips to find out what is really happening. At least then you will not have an overpayment to deal with in the future if the letter is correct, and if the letter (and helpline) proves to be incorrect you can amend the claim and give the underpayment.

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