A tenant has put in a claim for Housing Benefit and also Tax Credits. Normally Housing Benefit would be assessed without Tax Credits as Tax Credits normally takes weeks to be awarded. Due to a backlog at Housing Benefit the Tax Credits have been awarded before Housing Benefit has been assessed there for the Tax Credits have been taken into account from the biginning of theclaim. Is this correct or should Housing Benefit have taken Tax Credits in from the following Monday that it had been awarded from?
Thanks

Usually, income must be attributed to the period it is in respect of. However, Tax Credits are treated differently - HBR 32 & HBR 46(9) applies.

In short, any arrears of Tax Credits count as capital. Normal, ongoing, payments of Tax Credits are dealt with by reference to what is actually being paid, not necessarily by reference to the period it is in respect of. Ongoing Tax Credit payments must be treated as follows:

Daily instalments: taken in respect of that day

Weekly instalments: taken for the 7 days ENDING on the day payment is due.

Fortnightly instalments: taken for the 14 day period STARTING 6 days before payment is due.

4-weekly instalments: taken for the 28 days ENDING on the day payment is due.


Hope the above helps.

Thanks. It answers everything.