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

Disability and Severe Disability elements of WTC - Backdating

The Tax Credits (Claims and Notification) 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)

A claimant has been in receipt of WTC since April 2003. They make a claim for 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 claimant has been receipt of WTC since April 2003. 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 in conjunction with a war pension disablement benefit is decided on 4 July 2008 and the decision was that the benefit was 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 makes a claim for DLA on 13 February 2007. They were working 30 hours a week at this time, but did not make a claim for WTC until 17 January 2008, which was backdated to 17 October 2007. Entitlement to DLA was decided on 4 June 2008 and was 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, i.e. the date that the current claim for WTC was treated as being 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 Notification) Regulations. (TCTM06104)

Example 4

A claimant doesn’t work, but their partner works 30 hours a week so has been in receipt of WTC since April 2003. The claimant has a disability and makes a claim for DLA on 13 October 2007. The claimant started working 16 hours a week on 17 January 2008. Entitlement to DLA 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 disability element of WTC can be backdated to 17 January 2008, i.e. the date that the claimant satisfied the conditions of entitlement for the disability element of WTC