CCM11120 - End of Year Issues: Example of multiple awards to one household

Chris works 33 hours a week in a call centre, on a relatively low wage, when he makes his tax credits claim on 4 April 2005. He is awarded WTC from 6 April. On 1 June 2005 he notifies us that he will be travelling abroad for three months from 2 June, and his award is terminated. On 10 September 2005 he returns to the UK, and on 15 September he begins work as a self employed builder. He claims tax credits, and is awarded WTC from 15 September 2005, to 5 April 2006.

In April 2006 the NTC system issues separate S17 notices in respect of both periods, stating the first specified date to be 31 August 2006 (with provisional payments for 2006/7 due to cease at that date if there has been no response by then) and the second specified date to be 31 January 2007. Chris responds to the notices as follows:

• 6/4/2005 – 1/6/2005 (period 1) - on 31/8/2006 he reports his actual employed income for the entire year, and his estimated self employed income for the entire year.
• 15/9/2005 – 5/4/2006 (period 2) - on 31/8/2006 he reports his actual employed income for the entire year, and his estimated self employed income for the entire year.

Note that, although Chris has been sent two notices, and is required to respond separately to each, the income details he is asked to provide are identical for both periods – i.e. in each case the income he needs to report is for the entire year, not just for the period of the award.

Because the NTC system cannot link the two award periods, it will issue separate, interim (because Chris’ figures included estimated amounts) S18 decisions in respect of each.