Crisis of confidence ahead!

Am I right in thinking that the limit on backdating for WTC/CTC refers only to a change of circs that increases maximum entitlement?

That is, a simple decrease in income which increases the amount of WTC/CTC due is not subject to any such restriction, and can be reflected in its entirety in the end-of-year final decision, even if it happened in May?

Yes - that's what I understand too. An increase or decrease in income isn't really a change in circumstances for Tax Credits. Any differential between what the award was based on and what turns out to be the actual income for the year will be sorted out in the end of year review.

Reg 20 of the Claims & Notification Regs says a change of circumstances which affects the maximum entitlement is dependent on notification within 3 months of the change. A change in income may affect the amount paid, but doesn't affect the maximum rate of entitlement and therefore doesn't need to be notified.

Section 17(3) TCA specifies relevant circumstances which must be reported in the final notice as those affecting entitlement or the amount of TC - and specifically excludes income.

Have you by any chance had a fun response from the IR refusing to pay up on an underpayment?

No, nothing as fun as that.

I've just got clients who really don't want to speak with the IR at the moment and I want to be able to look them steadily in the eye and say it's OK to wait a bit.

Thanks for the reassurance!

I dealt with a bereaved lady in June who had to be reassessed for Tax Credit. The previous years award and new award had omitted both the disability and enhanced disability elements, some £5-6,000. She's adamant she indicated on the form child got DLA HRC.

In addition, income figure failed to recognise her pension payments so incorrect income used.

Letter sent 28th June, complaint reminder sent two weeks ago. Result zilch.

Another for the MP's intray.