Backdating Claims Where Benefit Interest Is Present (Info)

There is an Action Guide for this subject, click on 'Next Page' to access it

Note: Before making any changes to a claim, you must follow the guidance in Establish If A Change Can Be Made. This is to confirm if your change(s) can be made, or if the claim needs to be sent to a specialist team

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 will 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

This list is not exhaustive

If you wish to

Benefit interest on a claim is where the claimant

  • Is in receipt of Income Support ( IS), Jobseeker’s Allowance (IB) ( 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

Note: Pension Credit (PC) was formally known as Minimum Income Guarantee (MIG). The Income screen in Functions VIEW APPLICATION and AMEND APPLICATION still show a MIG field. This field should be checked or amended whenever it is appropriate to check or amend the PC marker

This guidance explains the backdating rules and 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 Backdating Team for action. For claims that do not have a benefit interest present, follow the guidance in Backdating Claims – General

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 when 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

Example 1

CTC only awarded claims

No automatic backdating occurs on claims where IS, JSA (IB), ESA (IR) or PC have continuing entitlement. This is to prevent CTC being paid for a period where child premia has already been paid as part of the IS, JSA (IB) or PC claim. The effective date will be the date of receipt

Note:ESA is only applicable from 27/10/2008 and there is no child premia paid as part of an ESA claim

The claimant can request that CTC is paid from the day after the child premia payment through IS, JSA (IB) or PC ceased

Note: Claims to IS, JSA (IB) or PC where there are children in the household, which were made prior to 05/04/04 continue to have child premia paid until a claim to CTC is made. New claims to IS, JSA (IB) or PC from 06/04/04 will not receive child premia payments and instead claimants will be directed to claim CTC for their child(ren) elements. From 06/04/04 if a household break up occurs on a claim receiving child premia through IS, JSA (IB) or PC, the claimants will be directed by DWP / DSD to claim CTC for their child(ren) elements

Backdating of CTC can be considered provided no child premia have been paid for the same period, to the date

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

Or

  • 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 will automatically commence from that child’s date of birth

Example 2

WTC only awarded claims where the claimant has commenced employment after ceasing IS, JSA (IB), ESA (IR) or PC, will be automatically backdated to the employment start date, when claimant 1 or claimant 2 commenced employment after ceasing IS, JSA (IB) or PC. This is provided the employment start date was no more than 3 months prior to the date the claim was received

Note: For automatic backdating to occur, the claimant must have provided the date they came off benefit and started their employment when completing their claim. . If this date is not provided, the claim will be backdated to the date the claim was received

Example 3

WTC and CTC awarded claims. If a new claim is received showing the date the claimant(s) came off IS, JSA (IB), ESA (IR) or PC and commenced employment and there is a qualifying child or children in the family, both the award of CTC and WTC will be automatically backdated

  • To the employment start date, provided the employment start date is no more than 3 months prior to the date the claim was received

If the child premium rates have not been paid with IS, JSA (IB) or PC prior to this date, the CTC element can be backdated and a manual calculation made to

  • 3 months prior to the date the claim was 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. An employment start date is provided of two months prior to the date the claim was received. Tax credits would be awarded 2 months prior to the date the claim was received for child 1 and the WTC element and a further tax credit entitlement for child 2 would automatically commence from that child’s date of birth. If child premia rates have not been paid with IS, JSA (IB) or PC, then a manual calculation for child 1 can be made for the period 3 months prior to the date the claim was received up to the date tax credits entitlement started

Example 4

CTC only Pension Credit (formally MIG) transition cases

No automatic backdating occurs due to the fact that benefit has already been paid to the claimant for the earlier period.

MIG transition cases were transferred over from DWP / DSD on an agreed date

You can identify the MIG transition cases by going to the Application Summary screen in Function VIEW APPLICATION and checking if

  • The date in the Received Date field is 17/08/03, 18/08/03, 19/08/03, 20/08/03, 21/08/03 or 15/09/03

And

  • The Source field is blank

Or

  • Whether Function MAINTAIN HOUSEHOLD NOTES contains the following message

‘TCMZ MIG Transferred case being worked Preston Guild FLR Do not work’

If the claimant still requests backdating of their claim, follow the guidance in Handling Complaints

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