TCO Clerical Calculation For Fast Track (CTC) Cases Post 06/04/04 (Info)

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From 06 April '04 all new Income Support ( IS) or Job Seeker’s Allowance (income based) ( JSA) claims did not include the child premia. Instead claimants were directed to claim CTC for their child elements.

Where the claim has been received through the Department for Work and Pensions ( DWP) / Social Security Agency (SSA) portal, the new tax credits claim should be payable from the same date that the IS or JSA (IB) award commenced.

However, currently, the computer does not allow this once a claim is at post award and a system workaround is not possible. You must therefore make a clerical calculation to ensure the claimant receives their full entitlement. For more information, follow the guidance in Backdating Claims Where Benefit Interest Is Present

Note: This does not affect claimants already receiving IS or JSA (IB), that is where entitlement to IS / JSA (IB) began prior to 06/04/04. These claimants will continue to be paid their child premium with their IS / JSA (IB) until their cases are automatically migrated to tax credits at a later date. However if their claim is affected by a household break up, the claimant will be directed to claim CTC for any child elements

A TCFT1 from DWP / DSD will advise of all appropriate tax credit claims. You will need to follow the existing Fast Track guidance in DWP / DSD Fast Track Claims to get the claim to 'Award Issued' status. Once the claim is at status 'Award Issued', if the claim has not been awarded from the same date that the IS / JSA (IB) award commenced, you will have to calculate the amount of any underpayment due, if applicable and make an off system cashcheque payment where necessary.

To avoid recovering this underpayment back in year, you will need to note the form R92TC with 'CTC for IS/JSA' so that Revenue Finance Worthing do not include the payment back onto the computer until the partial fix has been implemented.

Do not remove the IS or JSA marker from the computer

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