If there's anything worse than tax credits, it's tax credits on a monday morning! Having skimmed the regs I can find no mention of this circumstance, so any thoughts please.

Client finished work on 13 November, then went on holiday for 2 weeks. She was due 2 weeks holiday pay, and one 'lie' week, which has been paid, but no WTC has been paid for those 2 weeks. She has rung TCO and they've said they can't pay after the date she finished work. She is now claiming IS. The question is, can I argue she was in remunerative work while receiving holiday pay, even though she had actually left work? If she had gone on holiday during her notice period, she would obviously have been entitled to WTC while away. She worked the same number of hours each week, but I have looked at the averaging of hours rules, to see if I could cobble something together there. But if I used them, she wouldn't be entitled to WTC at all, as it would leave her under 16 hours a week (but still over her IS entitlement).

I suspect the answer is a hollow cynical laugh at the stupidity of the system, but anything more constructive would ease my frazzled monday brain. Cheers all.

A persons entitlement to tax credits continues after stopping work if the gap is no more than 7 days because they are treated as still being in qualifying remunerative work. See regulation 8 of WTC(entitlement and maximum rate) regulations 2002.

As i understand your clients situation she was paid the first 7 days but not the next 14. from your report of her case that would be correct. She wasn't in qualifying remunerative employment.

Off the top of my head, will this not mean that post reconciliation in April, the holiday pay will be added to the total income for the actual periof of work.