I know there have been posts on this before, but did we ever reach a conclusion? Usual scenario. Client recieves LTHR IB with age addition, parter works (20 hours pw). Recieving full CTC, partial WTC, partial CTB. Mortgage protection policy expires in Oct. Based on current circs, they'll qualify for some IS towards MI from thereon, thus passporting them onto full CTB as well. However, IS award will automatically result in full WTC as well as CTC, which will push them off IS. Short of partner reducing her hours to under 16, is there any solution I'm missing?

We have raised this issue numerous times and it is currently under discussion at the Tax Credit Consultation group again. As yet no-one has been able to come up with a solution given the wording of the regulations (or not that I am aware of).

We have been asked to provide real examples (as opposed to the 10 hypothetical examples we have previously given them). I have 2 or 3 where the circularity occurs with Pension Credit, but only have one other where it happens with IS. HMRC seem to think it is only a PC problem, partly because I think they have failed to realise the importance of housing costs which I believe are in each of the case examples I have.

If you would be willing to pass on further details to me (anonymously of course)that would be most useful in showing that this is in fact a real problem.

My email is [email protected]

Thanks

Victoria