CCM11130 - End of Year Issues: Multiple entitlement units during the year
Where a person has appeared in more than one award during the year, they may have more than one entitlement. They could have separate entitlements as
- an individual (A)
- a member of couple (B)
- a member of couple (C)
Each of the different entitlement units is treated as a separate
entitlement unit, even if one individual is common to all of them.
But where more than one award has been made to the same
entitlement unit (e.g. if two awards had been made to A as an
individual, one award to couple B and one award to couple C) over
the course of the year, all of the awards made to the same
entitlement unit are to be treated as a single award.
Example
Colin works 33 hours a week in a call centre, on a relatively
low wage. He claims tax credits and is awarded WTC from April 2005.
On 30 June 2005 he moves in with Cathy, who is self employed,
working more than 16 hours a week as an alternative therapist, and
has two children. The couple jointly claim tax credits on 1 July,
and are awarded CTC (their joint income is too high for WTC).
Colin’s award of WTC is terminated from 30 June. On 10
January 2006 Colin moves out to live with Suhair, who has three
children and does not go out to work. The couple make a joint claim
for tax credits on 11 January, and are awarded WTC and CTC. Colin
and Cathy’s joint award is terminated from 10 January 2006.
There have been three entitlement units during 2005/6
- 6/4/2005 – 30/6/2005 Colin as an individual claimant - (A)
- 1/7/2005 – 10/1/2006 Colin and Cathy as joint claimants (couple B)
- 11/1/2006 – 5/4/2006 Colin and Suhair as joint claimants (couple C).
If however Colin and Cathy had separated on 30/9/2005, then got
back together on 1/11/2005, before finally separating on 10/1/2006,
they would have received two awards as joint claimants for the
periods 1/7/2005 to 30/9/2005 and 1/11/2005 to 10/1/2006. But they
would still only, as a couple (couple B), have a single entitlement
for the year.
A S17 notice will be issued to each of the 3 units. Colin
will be asked to report his income for 2005/2006 in respect of his
claim as an individual and then Colin & Cathy and Colin &
Suhair will each be asked to report their income for the whole of
2005/2006 in support of their claims as a couple.
If Colin returns his S17 declaration confirming his income
for the year, and Cathy returns her S17 declaration confirming her
income, but Suhair does not return her S17 declaration, you will be
able to issue a S18 decision for Colin’s award as an
individual (claimant A above) and for Colin and Cathy as joint
claimants (couple B above). You will not be able to issue a S18
decision for the award of Colin and Suhair (couple C above) until
either Suhair returns her S17 declaration or at the first specified
date, see
CCM11045.
You will be able to give a S18 decision on the award of Colin
and Suhair after 31/08/2006 if Suhair has still not replied to her
S17 notice based upon the information you have available. This can
include using the income information Colin has returned in his
other awards.
