Hoping someone can help. I have a client who claimed Tax Credits after the birth of her 1st child six months ago. She also claimed HB/CTB, but was refused this due to her level of income. When the Tax Credits award letter came through, it had the child’s name printed twice. She rang to query and was advised it was a typo and not to worry. When her maternity pay stopped and she went to claim Income Support, she was told she was being paid Tax Credits for two children. Tax credits have now notified of an overpayment and started recovering it from her ongoing award.
She has asked HB/CTB to backdate an award, as they based the nil assessment on Tax Credits that she is now having to pay back. HB have refused the backdate. As she is on IS now, she is entitled to full HB/CTB, so the reduction in her Tax Credits is not having any positive affect on her award.
Is there any argument there to get HB to backdate?
She has submitted an appeal against the Tax Credits overpayment - but we all know how difficult and unpredictable these can be.

The difficulty with Tax Credits is that the LA is required to take into account what was actually paid - not what your client was entitled to. this approach was confirmed in CH/1450/2005.

The only exception this this would be if your client kept telling HMRC to stop paying Tax Credits. Depending on the precise circs, it *may* be that subsequent payments should be treated as "voluntary payments" (and hence disregarded). See CIS/1813/2007.

I there any mileage in complaining to the TCO and asking for your client to be compensated for the lost HB/CTB?

Refuse to pay back the Tax Credit? Their error.