Child Tax Credits In Final Year of A Levels

sheramber

Note: Where a qualifying young person intends to continue their full-time education but at advanced level CTC can be paid to:

• the last day of the academic year (31 August)
  or
• if before 31 August, the date the young person changed their mind and decided not to continue their education

Example

A claimant telephones on 27 August to inform tax credits that her daughter has found work.  The claimant states that although her daughter had originally intended to go to university, following her exam results she had decided to look for a job instead and has now found work.  She is asked what date her daughter made the decision to look for work and not go to university.  This date is given as the 21 August.  CTC can therefore be paid to the 20 August.

https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02230

Claimants also need to notify HMRC if the child subsequently leaves their education or training as entitlement for that child will end, although there are slightly different rules here about when child benefit entitlement ends, see GOV.UK

https://revenuebenefits.org.uk/blog/Claiming-for-16-year-olds-and-over-contact-HMRC-by-31-August

Jane_The_Saver

sheramber said:

Note: Where a qualifying young person intends to continue their full-time education but at advanced level CTC can be paid to:

• the last day of the academic year (31 August)
  or
• if before 31 August, the date the young person changed their mind and decided not to continue their education

Example

A claimant telephones on 27 August to inform tax credits that her daughter has found work.  The claimant states that although her daughter had originally intended to go to university, following her exam results she had decided to look for a job instead and has now found work.  She is asked what date her daughter made the decision to look for work and not go to university.  This date is given as the 21 August.  CTC can therefore be paid to the 20 August.

https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm02230

Claimants also need to notify HMRC if the child subsequently leaves their education or training as entitlement for that child will end, although there are slightly different rules here about when child benefit entitlement ends, see GOV.UK

https://revenuebenefits.org.uk/blog/Claiming-for-16-year-olds-and-over-contact-HMRC-by-31-August

OK, thanks for this. It confirms in a roundabout way that CTC doesn't continue until 31st August if the young person isn't going to Uni. I do feel its grossly unfair that in the example above the persons entitlement end date is only backdated to the daughters 'change of mind' & not back to the date she finished college. Anyone could make this story up to get an extra couple of months financial help couldn't they? Doesn't pay to be honest it seems. 

Spoonie_Turtle

Jane_The_Saver said:

Frogling said:

I am currently in a similar situation to you OP, although you seem to indicate that your daughter is going to start work now that her A-levels are finished? If that is the case, then that may well be why the information I was given differs.

My daughter is off to Uni next month, and I was told by an HMRC advisor that as she plans to continue to advanced level education that tax credits can be paid to 31 August, which is considered to be the last day of the academic year apparently. My online account has the following message on the tax credits page: "We are currently working out your tax credits payments as your child is about to change their education or training."

I agree with you that finding information about this can be difficult. Some of it is as clear as mud!

Yes, I have heard that from someone else. You wont be entitled to Tax Credits when your daughter starts Uni as you know, so it doesn't make sense to me that you should be entitled to payments until the end of August but I'm not. In other words, the state cuts off all support to me and my daughter because she has made the decision to start work (but unfortunately hasn't found a job yet) but will support your daughter to have the summer off before starting advanced education which is not covered by Tax Credits anyway! Sorry, doesn't make sense to me at all. Additionally, I have found confirmation that Child Benefit is payable until the end of August after finishing college so why are Tax Credits any different? To confuse things even more, it seems that my daughter is disregarded for Council Tax purposes until 1st November!! How is anyone supposed to make sense of all this! Thanks for your contribution.

I think the point here is that during the summer, the 18yo planning to go to uni will be getting ready and realistically wouldn't be able to look for work and then if they get a job just leave again in September. The 18yo not planning to go to uni should* be able to claim UC in their own right (though you'd have to weigh it against how much CB pays, I have no idea) if they need financial support whilst trying to find work.

*I say 'should' just in case I've missed some bizarre anomaly that treats A levels as only finishing at the end of August. I should hope not, but cracks in the UC system are not unknown.

Arianewix

I have discovered affirmation that Child Benefit is payable until the finish of August subsequent to completing school so why are Tax Credits any unique? To befuddle things considerably more, it appears to be that my little girl is ignored for Council Tax purposes until first November!! How is anybody expected to understand this! Much obliged for your commitment.
Learn More about tax from this educational websites like textsheet website. 

poppy12345

Arianewix said:

I have discovered affirmation that Child Benefit is payable until the finish of August subsequent to completing school so why are Tax Credits any unique? To befuddle things considerably more, it appears to be that my little girl is ignored for Council Tax purposes until first November!! How is anybody expected to understand this! Much obliged for your commitment.
Learn More about tax from this educational websites like textsheet website. 

For tax credits it depends whether they are continuing with their education. If they are not continuing then it ends when they leave school/college, otherwise it's paid until the end of August. For council tax then all local councils have their own criteria.

sheramber

The  regulations for tax credits, child benefit and council are all separate and not aligned in any way.