TCM0232080 - Payment - payment profile: Payment profile - direct payments schedule (Info)

A one-off payment will be made for

  • any tax credit arrears
  • the total amount of the award if it falls below a set amount
  • a non-standard first regular payment.

Arrears will be calculated as the shortfall between the amount paid to the customer up to and including the processing date and the amount of their entitlement up to the day before the processing date.

Regular payments will be set up for ongoing tax credits payments. The amounts of regular payments are calculated by determining the payment frequency and regular pay day.

For each period of constant entitlement from the processing date onwards, the number of regular payments that can be accommodated in each period is established.

The total amount of entitlement in each period is divided by the number of payments that can be accommodated for each entitlement period. Rounding differences are paid with the first of these regular payments, making this a non-standard payment.

If the entitlement period is so short that it does not include a payment date, then the whole of this entitlement will be paid with the first payment after the end of this entitlement period. For example, where the entitlement period is only 20 days in length and the payment frequency is four-weekly.

Where more than one tax credit is to be paid direct to the same customer

  • at the same frequency, a payment schedule will be set up combining all tax credit payments
  • at different frequencies, a schedule will be set up for each payment frequency.

Where a family is entitled to more than one tax credit payable to different customers, a regular payment schedule will be set up for each customer.

When a one-off payment is paid, it will be checked against the minimum amount, currently £1.00. If it is below the minimum amount, it will be combined and, where possible, paid with the next regular payment.

If a one-off payment is to be made at a future date and the due date falls on a weekend, the due date will be amended to the Friday that precedes the weekend, unless that Friday is before the processing date. In these cases, the due date will be amended to the Monday following the weekend.

The regular payment for each subsequent entitlement period will be calculated by dividing the total amount of tax credit due to the recipient by the number of pay days in that period. Any rounding differences will be calculated and added to the first regular payment in the first entitlement period.

A regular payment will be set up to run until the end of the renewal period, unless the award is recalculated and provides another entitlement period or end date within the renewal period.

When a customer has nominated an appointee and payment is made by giro, payments will be made to the appointee. The giro will name the appointee as the ‘payee’ and will show ‘for [customer’s name]’.