Backdating Claims - General (Info)

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Providing eligibility requirements are met at the earlier date, a claim for tax credits can be backdated for a period of up to 3 months prior to the date the claim was received.

In the majority of cases, the computer should automatically calculate this date. But you will need to calculate this date and complete theBackdating / Forward Dating Referral Stencilif

• The effective date has been recorded incorrectly
   
• The claimant requests the effective date be amended
   
• You are notified by Compliance that an effective date needs correcting

Claims can be backdated manually or using Function AMEND EFFECTIVE DATE depending upon the case. You must have the appropriate user role to backdate a claim using Function AMEND EFFECTIVE DATE

Examples of cases which require manual backdating are

• Claims where you are backdating to a date older than PY
   
• Claims where the whole award is being paid manually
   
• Backdating refugee claims

Note: This list is not exhaustive

If you wish to

• Backdate a claim manually, follow the guidance in Manual Calculation Of A WTC / CTC Claim Requiring Backdating To An Earlier Date
   
• Backdate a claim on the computer, follow the guidance in Amend Effective Date

For claims which have a benefit interest, follow the guidance in Backdating Claims Where A Benefit Interest Is Present. Benefit interest on a claim is where the claimant

• Is in receipt of Income Support ( IS), Jobseeker’s Allowance (Income Based) ( JSA), income-related Employment and Support Allowance ( ESA) or Pension Credit ( PC) at the date of claim

Or

• Has commenced employment after ceasing IS, JSA (IB), ESA (IR) or PC

There is an explanation below of the backdating rules which will help you to identify whether a claim has been correctly backdated or not. If you identify a claim that has not been backdated correctly, you must follow the appropriate guidance, complete the referral form and send the case to the appropriate Management Unit ( MU) for action

Backdating rules

The legislation refers to backdating up to a maximum of 3 months. For actual backdating purposes, when a claim is captured on the computer, this is actually calculated by counting back 93 days. This should not be confused with applying a change of circumstances in Function AMEND APPLICATION for post award cases, where the 3 month backdating rule actually refers to 3 calendar months.

Note: Calculation of the 3 month date, where a manual calculation is being made, should be based on the actual 3 month date in line with tax credits legislation

New claims can be backdated to the date that the claimant and partner in joint claims first became eligible for tax credits. This may be

• The date they first started working at least 16 hours a week, if they have a child or a disability
   
• The date they first started working at least 30 hours a week, if they are aged at least 25 and they do not have any children or a disability
   
• The date they first became responsible for a child, if they are under 25 and working over 16 hours per week
   
• The date of their 25th birthday, if they are working 30 hours per week

On new claims where the claimant is eligible for tax credits and there is no benefit interest, the computer will automatically calculate the earliest effective date up to a maximum of 93 days prior to the date the claim was received.

Backdating request made in respect of a same sex couple

In the case of a claim from a same sex couple, the claim cannot be backdated for a period before 05/12/2005, the date the Civil Partnership Act comes into force.

The computer will not automatically backdate for a period before 05/12/2005 when a joint claim has been made by a same sex couple. No manual calculation in respect of backdating should be made for any period before 05/12/2005

The following are examples of the different types of backdating that may occur. Where there is benefit interest present, you must follow the guidance in Backdating Claims Where A Benefit Interest Is Present

Example 1

CTC only awarded claims where there is no IS, JSA (IB), ESA (IR) or PC interest present. The claim will be automatically backdated to

• 3 months prior to the date the claim was recorded as being received
   
• The date a new child was born, where there is only 1 child in the family

Or

• The date responsibility for a child commenced, where there is only 1 child in the family

For example: Claim made for a family containing 2 children. Child 1 is two years old at the date of claim. Child 2 is one month old at the date of claim. Tax credits would be awarded 3 months prior to the date the claim was received for child 1 and a further tax credit entitlement for child 2 would automatically commence from that child’s date of birth

Example 2

WTC only awarded claims will be automatically backdated to the date the claim was recorded as being received

Note: The claimant can request that their claim is backdated up to a maximum of 3 months prior to the date of receipt and, if they advise you that there was eligibility at the earlier date, WTC will be payable from the earlier date. Eligibility to WTC must have continued throughout the period. If eligibility to WTC ceased, tax credits would only be payable from the date entitlement restarted

For example: Claim received 11/07/05. Backdating requested to 09/04/05. Claimant’s qualifying employment ended on 23/05/05 and they did not restart qualifying employment until 06/06/05. As the gap in employment is over 7 days, entitlement to WTC would cease. Claim can be backdated to 06/06/05

Example 3

WTC and CTC awarded claims. If a new claim is received and there is a qualifying child or children in the family, the claim for CTC and WTC will be automatically backdated to

• 3 months prior to the date the claim was recorded as being received
   
• The date a new child was born, where there is only 1 child in the family

Or

• The date responsibility for a child commenced, where there is only 1 child in the family

For example: Claim made for a family containing 2 children. Child 1 is two years old at the date of claim. Child 2 is one month old at the date of claim. Tax credits would be awarded 3 months prior to the date the claim was received for child 1 and a further tax credit entitlement for child 2 would automatically commence from that child’s date of birth

Example 4

Backdating over 3 months. A claim cannot be backdated more than 3 months prior to the date the claim was recorded as being received unless

• A claim for WTC has been made within 3 months of a decision being made on a claim to qualifying disability benefit. In this case the claim can be backdated to the date on which the qualifying disability benefit became payable, limited to 3 months from the date the qualifying benefit was claimed, provided all other qualifying conditions for WTC have been met for this period. Follow the guidance in Backdating Requested Due To A Disability

Or

• The claimant applied for asylum as a refugee and has therefore been excluded from tax credits as a person subject to immigration control, but the claimant

• Is then notified they have been given refugee status by the Home Office

And

• Applies for tax credits within 3 months of receiving that notification. Follow the guidance in Backdating For Refugees

• The claimant states they made a claim for tax credits more than 3 months ago, but there is no record of a claim relating to this period on the computer. Follow the guidance in Establishing Evidence Of An Earlier Claim

Note: If you receive a request to backdate more than 3 months and the claimant does not satisfy the above criteria, follow the guidance in Handling Complaints