Hi Folks My client was recently made redundant, and received various payments in her last pay packet. She was getting WTC in with wages.I have confirmed that for IS she will be treated as still working for period covered by hol pay/pay in lieu etc. However, should she then be entitled to WTC ( if she is to be treated as still working..)for the same period..?

The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (SI 2003/701)inserted following reg from April 03.

Pay in lieu of notice
7C. - (1) This regulation applies if a person stops work and receives pay in lieu of notice.

(2) For the purposes of the conditions in regulation 4(1), the person shall not be treated as being engaged in qualifying remunerative work during the period for which he receives the pay.".

Thanks Euan...altho' the Claimant will be less pleased..! Linus