TCM0322470 - Extra information - miscellaneous information: Notional entitlement calculations examples
Note: The backdating period is 93 days up to 05-04-12 and 31 days from 06-04-12.
Example 1
This example is where there was a partner at the date the claim was made and the partner is still living with the customer.
Katie made a claim as a single person on 6 August 2005 that was not backdated. She had been living with Nick at the date the claim was made but thought that, since he was a long distance lorry driver who was only at home two days each week, she did not need to include him on the claim.
On 1 December 2007, she phones the Tax Credits Helpline because she realises she has made a mistake. The award is then terminated. On the same day, Katie and Nick make a claim as a couple and this claim is backdated 93 days to 01-09-2007.
The amounts overpaid between 06-08-2005 and 01-12-2007 are
| Period of overpayment | Amount |
|---|---|
| 2005-2006 (06-08-2005 to 05-04-2006) | £7,160 |
| 2006-2007 (06-04-2006 to 05-04-2007) | £9,440 |
| 2007-2008 (06-04-2007 to 01-12-2007) | £7,310 |
Katie was able to provide details of Nick’s income. He was not included in another claim. Had Katie and Nick made a claim as a couple at the correct time they would have received
| Period of overpayment | Amount |
|---|---|
| 2005-2006 (06-08-2005 to 05-04-2006) | £4,985 |
| 2006-2007 (06-04-2006 to 05-04-2007) | £5,235 |
| 2007-2008 (06-04-2007 to 31-08-2007) | £3,265 |
Note: The period for the calculation of the notional entitlement ends on 31-08-2007. This is because the correct new claim was backdated to 01-09-2007.
Katie’s overpayments after applying notional entitlement are therefore
| Period of overpayment | Amount |
|---|---|
| 2005-2005 | £2,175 |
| 2006-2007 | £4,205 |
| 2007-2008 | £4,045 |
Example 2
This example is where the partner no longer lives with the customer and the partner’s income has not been provided.
Sally made a claim on 06-05-2005 as a single customer that was not backdated. Ian had been living with her at the date of claim but they separated on 06-12-2005. Sally did not include him on the claim she made on 06-05-2005 but, on 06-11-2007, she contacts HMRC to notify her mistake.
You terminate the claim on 06-05-2005 and, on the same day, Sally makes a new claim as a single person, which is backdated to 06-08-2007. The amounts overpaid between 06-05-2005 and 05-11-2007 are
| Period of overpayment | Amount |
|---|---|
| 2005-2006 (06-05-2005 to 05-04-2006) | £6,676 |
| 2006-2007 (06-05-2006 to 05-04-2007 | £5,310 |
| 2007-2008 (06-04-2007 to 05-11-2007) | £4,388 |
Sally cannot provide details of Ian’s income, so you cannot apply notional entitlement for the period 06-05-2005 to 05-12-2005. However, you calculate that if she had made a claim as a single person on 06-12-2005 she would have been entitled to tax credits of
| Period of overpayment | Amount |
|---|---|
| 2005-2006 (06-12-2005 to 05-04-2006) | £2,427 |
| 2006-2007 (06-04-2006 to 05-04-2007) | £2,575 |
| 2007-2008 (06-04-2007 to 05-08-2007) | £2,508 |
Note: The period for the calculation of the notional entitlement ends on 05-08-2007. This is because the correct new claim was backdated to 06-08-2007.
Sally’s overpayments after applying notional entitlement are
| Period of overpayment | Amount |
|---|---|
| 2005-2006 | £4,249 |
| 2006-2007 | £2,735 |
| 2007-2008 | £1,880 |
Example 3
This is where the partner no longer lives with the customer and the partner’s income has been provided.
The details are as in Example 2 but Sally can provide details of Ian’s income. Ian was not included in another claim. Had they claimed as a couple for the period 06-05-2005 to 05-12-2005 they would have received £2,604. Sally’s overpayments are now
| Period of overpayment | Amount |
|---|---|
| 2005-2006 | £1,645 |
| 2006-2007 | £2,735 |
| 2007-2008 | £1,880 |