Change Of Circumstances From A Claimant Who Is In Prison (Info)

From 6 April 2007 the regulations have been amended to remove entitlement to Working Tax Credit ( WTC) from claimants who are serving a custodial sentence

This means that from 6 April 2007 any work done by a prisoner either

• Inside prison
   
• Outside prison on licence, for example on day release

Or

• Whilst held on remand awaiting trial or sentence is not treated as qualifying remunerative work for tax credit purposes

Claimants who are in receipt of WTC immediately prior to being placed on remand will continue to be entitled to WTC for as long as they

• Remain employed or are suspended from work pending the outcome of a police investigation

Or

• Continue to be self employed

Or

• Until they are sentenced

Any amount paid to a claimant for work done whilst they are serving a custodial sentence or remanded in custody awaiting trial or sentence is treated as employment income

WTC four week run on period

Claimants who are either on remand or serving a custodial sentence are not entitled to the four week run on period.

Entitlement to childcare charges

A couple will still be entitled to claim childcare charges where one member of a couple is working for at least 16 hours or more a week and the other is either on remand or serving a custodial sentence.

Entitlement to Child Tax Credit (CTC)

Entitlement to CTC is not affected by the change in the regulations and will continue to be payable to claimants who satisfy the eligibility criteria, unless a claim to CTC is made by the person who is looking after the child or young person.

Action to take

Any change of circumstances where the claimants are starting or ending remand or a custodial sentence should be referred by taxpost to the European Economic Area (EEA) Team (This text has been withheld because of exemptions in the Freedom of Information Act 2000)