TCTM05300- Effective Dates of Changes in Circumstances
Date of notification - Where the change results in an increase in tax credits
The Tax Credits (Claims and Notification) Regulations 2002, Reg 25
Changes of circumstances resulting in an increase in tax credits, such as a new child in the family, or the family starts to use registered or approved childcare, can be backdated to a maximum of 3 months.
The date of the change is either
- The date 3 months before the date of notification, or if later
- the date of the change.
Date of notification - Where the change results in a decrease of tax credits
The Tax Credits (Claims and Notification) Regulations 2002, Reg 21
Changes in circumstances which result in a decrease in tax credits are usually backdated to the date of the change.
For example
- a child or young person leaves the family
- changes in the adults heading a household, for example if a couple breaks up or when people begin living together as a couple.
However in certain circumstances the claimant may continue to be entitled to a ‘run on period’ of tax credits, for example if the claimants job ends or they cease to undertake work for at least 16 hours per week, or if childcare costs have reduced by more than £10.00 per week.
Disability and Severe Disability elements of WTC & CTC - Backdating
The Tax Credits (Claims and Notification) Regulations 2002, Reg 26 & 26A
There are cases where changes in circumstances can be backdated more than three months. These are changes which result in an award of the disability or severe disability elements of CTC and WTC.
For the legislation on backdating the disability and severe disability elements of WTC, please see TCTM05310.
For the legislation on backdating the disability and severe disability elements of CTC, please see TCTM05320.
