backdating wtc?

Linda_Secker

Hi all

I hope someone can help. My friend was claiming WTC until last June when his wife left him. TCO terminated his claim because his income (his previous year’s income) was greater than the cut off point for a single person so he was no longer entitled. However, he had lost his paid job, and taken up self employment. His income was significantly reduced. I rang TCO on his behalf and asked if he could make a new claim. He was hoping to earn about £12000 a year so that is the estimate I gave the woman on the phone. She said that was too high to make a claim so refused even to send out a form.

It soon became clear his income was going to be way lower than that so I (finally) persuaded him to try again. I helped him fill the form in and sent a covering letter detailing his new (still estimated) income and asking for the claim to be backdated to June when his old claim was terminated.

TCO have awarded him £17 a week, but only from the date of the new claim.

I am kicking myself for not checking the cut off point for a single person when I made the call for him last year. If I’d said £11500 instead of £12000 he would’ve been given a tiny amount of WTC and then got a backdated amount after the renewal/review thing. It seems very unfair. If his wife hadn’t left their payments would have been adjusted and backdated when his new income was known.

So is there anything he can do?

regards
Linda

bestpud

No, I don't think there is, as they gave you the correct information, based on the figure you gave them.

It's frustrating though, I agree.

When did you realise his income would be lower?

Linda_Secker

Hi Bestpud

We realised his income would be lower when we I sat him down and did his books when he had been SE for about 6 months, so that would've been September or October last year. When I made the phone call he'd been SE for just 3 months - far too soon to make any proper kind of estimate, it was a hopeful guess. She caught me on the hop frankly - I thought they'd jsut send a form, not ask loads of details.

It took ages to get him to agree to claim again becasue he feels a complete failure and his emotional state was a bit too delicate for any serious nagging until January this year.

Very unfair system IMHO

thanks and regards
Linda

hotblu

Hello Linda Secker,

When you submitted the application for WTC it should have automatically backdated 3 months (93 days). You can appeal, but it is very unlikely that TCO will fully backdate.

Hotblu

JessicaF_2

You should write a letter to the Tax Credit Office and ask them to give you a payment to make up for any tax credits missed out on due to their incorrect advice.

They were right to advise you that your friend would not actually get any tax credits, but wrong to refuse to send you a claim form.

What they should have done was sent you a claim form and advised you to make what is called a 'protective claim'. There is information about this on their newly designed website.

Essentially, a protective claim is where you meet the qualification criteria for tax credits (as your friend presumably did) but your income is too high which means you will be award nil tax credits. However what this means is that you have a protective claim, should your income fall your tax credits are recalculated for the whole year rather than just 3 months backdating if you make a claim at the point your income falls.

If you need help with this contact www.litrg.org.uk or www.taxaid.org.uk

JF

Linda_Secker

Thank you so much, Jessica.

It looks like he should definately have made a 'protective' claim - he seems to fit the criteria perfectly.

I made the call for him on 26 June, so well within the 3 month deadline from beginning of the tax year - and as his business only started beginning of March, how on earth could he have been expected to estimate his earnings, so Yes, the woman should've suggested it and sent a form out.

Only thing now is - will they honour that?

I'll write the letter and quote taxaid.org, but I can't prove that I rang for him, or that she refused to send a form, so I won't be holding my breath.

I'm wondering about waiting until the renewal/review thingys come though....he'll get one for the claim that's been agreed recently, but do you think he might get one for the claim that was terminated? (same tax year.....)

Lastly.....it said on one of the links you sent me that you have to ASK for the 3 month backdated bit...it isn't automatic for wtc. Well we did ask, in the covering letter, but it hasn't been. Will that be sorted in the renewal? I'm just thinking if he can't get 9 months worth, 3 would be better than nothing.....

Thank you very much, again
Linda

JessicaF_2

With regards to the telephone call, it may be possible to ask the HMRC data protection unit to see if they can trace a copy of the call if you can provide them with an approximate time period when the call was made and the number it came from. However, this does not always work.

Certainly if your friend qualified for WTC for the 3 months prior to his actual claim date he should have the 3 months backdating of WTC anyway. Don't wait for his renewal, write a letter asking for it. Send it to the appeals team. It is correct that WTC is not automatically backdated.

On the issue of the further backdating, you should certainly ask for an extra payment to make up for the money he should have had, had the Tax Credit office not given him the incorrect advice. You should explain in your letter that you contacted the TCO, that they refused to send a claim form and that as a result he has suffered X amount loss. You should also send them a copy of their protective claim info from their own website.

Like I said if you struggle I am sure either of those two organisations, or indeed a CAB would be willing to try and help you.

Good luck!

Jessica