Child tax credits not counted in IPA's / IPO's

ceri123

Can I just ask... if CB & CTC are disregarded as income for evaluating whether an IPA be imposed, surely this would reduce some of the reasonable amounts you could claim you are spending? Clothing, food etc for children would be covered by some of the CB & CTC and so therefore wouldn't the OR query why you still claim to be spending xxx on those items if you are assuming the CB & CTC won't be included in the income?

debt_doctor

No, the technical manual accepts that there will be expenses for the child but that any of the income specific to the child should be ignored.

DD

Addicted2Chocolate

I have checked with our technical section. The reply i received today was:
Child tax credit should be included in any calculation of real disposable income in the same way as all other state benefits. The only exception is child benefit which is not an income based benefit.
I must say this is in line with how we treat CTC in my office.
So it is my belief we do included CTC as assessable income for IPA's.

debt_doctor

Thanks for checking that out A2C:T , altough I dont agree with them.

Where does your technical section take its guidance from if it is not from the technical manual ?
Also if it is from the technical manual do they feel they know better than the person within the insolvency service who drafted that particular section, and perhaps more importantly does your technical section feel they have the right to ignore a high court ruling ?.

I appreciate that you have asked the question and it would be difficult for you to challenge it, but I wondered in light of that e mail and the fact ( I assure you ) that the insolvency service in my area never count CTC as they feel it would be unlawful what your personal thoughts on the subject were ?

Best

DD

fermi

Off on a slight tangent, does anyone have a link to the text of the High Court ruling since I would be interested in reading it?

A search of all the usual places doesn't bring anything up, and the TM is missing the usual reference that is normally included in the notes section.

debt_doctor

Im afraid I havent Fermi, but im going to make every effort to find it !

Peter_Pan

Would the CTC only be taken into account for the person who they are paid to (ie in our case they are paid to me, OH is the one who went bankrupt)?

Addicted2Chocolate

debt doctor, i am going to personal message you.

debt_doctor

Thanks for the pm !

DD

Addicted2Chocolate

I think i will be able to find at least the case name for the high court case on wednesday. I will post details if i can find it.