TCTM05310 - Changes of circumstances: Effective Dates of Changes in Circumstances - Disability and severe disability elements of WTC- Backdating

The Tax Credits (Claims and Notifications) Regulations 2002, Reg 26

This legislation was changed on 6 April 2009. If you are dealing with a change of circumstances about backdating the disability and severe disability elements of WTC and notification of that change was received before 6 April 2009, you must follow the guidance at TCTM05330 

Where a notification is given of a change of circumstances which results in an award of the disability or severe disability element of WTC or both of these elements and the notification is received within 3 months of the decision on entitlement to the qualifying benefit referred to in regulations 9(1)(c) (TCTM02510) or 17(2) (TCTM02550) of the WTC (Entitlement and Maximum Rate) Regulations, the award can be backdated longer than three months.

The element(s) can be backdated to;

• the first date from which the benefit claimed was payable; (See Example 1) or
• if later, the date falling three months before the claim for the benefit was made; (See Example 2) or
• if later, the date that the current claim for WTC was made (or treated as made under regulation 7 of the Tax Credits (Claims and Notification) Regulations; (See Example 3) or
• for the purposes of the disability element, if later, the first date that the person or persons satisfies the conditions of entitlement for the disability element of WTC. (See Example 4)

Example 1

A person received WTC from April 2003, and they claim DLA (HCC) on 13 October 2007. Entitlement to DLA (HCC) was decided on 4 June 2008 and was payable from 13 October 2007. The claimant notifies HMRC within three months of this decision being made. The severe disability element of WTC can be backdated to 13 October 2007, i.e. the date the DLA (HCC) became payable.

Example 2

A person received WTC from April 2003, and they make a claim for a Constant Attendance Allowance in conjunction with a War Pension Disablement Benefit on 13 October 2007. Entitlement to the Constant Attendance Allowance is decided on 4 July 2008 and benefit is payable from 19 October 2005. The claimant notifies HMRC within three months of this decision being made. The disability element of WTC can be backdated to 13 July 2007, i.e. the date falling three months before the claim for the benefit was made.

Example 3

A person working 30 hours a week claims DLA on 13 February 2007, they claim WTC on 17 January 2008 which is backdated to 17 October 2007. Entitlement to DLA is decided on 4 June 2008 and is payable from 13 February 2007. The claimant notifies HMRC within three months of this decision being made. The disability element of WTC can be backdated to 17 October 2007, the date that the current claim for WTC was treated as made.

However, we can now consider whether it is appropriate to consider backdating the original WTC claim using reg 8 of the Tax Credits (Claims and Notifications) Regulations. (TCTM06104)

Example 4

A couple have been getting WTC since April 2003. One of them works 30 hours per week, the other is disabled and does not work. The disabled person makes a claim for DLA on 13 October 2007, and starts working 16 hours per week on 17 January 2008. They notify HMRC of the DLA decision within 3 months of it being made and the WTC disability element is backdated to 17 January 2008. This is the date that the disabled person satisfied the entitlement conditions for the disability element of WTC.