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CPAG Tax Credits E-Bulletin March 2008
Dear Colleague,
Welcome to the March 2008 edition of CPAG’s tax credits e-bulletin keeping you up-to-date with tax credits news and developments.
Contents:
CPAG news and events
Test case needed
Tax credits training
New 'Tax credits for disabled workers' factsheet
Tax credits news
New claim pack notes
Healthy Start Scheme during 4-week run-on
Annual declarations – extra 30 days
Budget
CPAG news and events
Test case needed - tax credits offsetting
CPAG is looking for cases where claimants have been overpaid for technical reasons, and despite no loss to the public purse HMRC has refused to write off the overpayment. This usually arises where someone has claimed tax credits as a couple when they should have claimed as a single claimant, or vice versa. We believe HMRC may be acting unlawfully if it is not prepared to consider writing off overpayments in these circumstances. If you have a case like this that you think might be a potential test case then please contact CPAG's solicitor Sarah Clarke at sclarke@cpag.org.uk
Tax credits training
There are still places available on the Tax Credits: Overpayments course on Tuesday 21st April and on the Tax Credits: Compliance and Appeals course on Wednesday 22nd April. Both are suitable for experienced advisers and take place at the CPAG office in central London.
Click here to book a place or for further details contact the training department on 020 7812 5228/5217 or email training@cpag.org.uk
There are also forthcoming training courses on:
To view our full training programme and for further information:
www.cpag.org.uk/training
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New 'Tax credits for disabled workers' factsheet
The latest in our series of factsheets providing information for advisers on a wide range of tax credits topics is now available in print. 'Tax credits for disabled workers' looks at some of the issues of concern around the special qualifying rules and additional amounts for disabled workers. To request printed copies please email acarr@cpagscotland.org.uk.
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Tax credits news
New claim pack notes
The guidance notes issued by the Revenue with the tax credits claim pack are being extensively revised from April 2008. The current 60-page booklet, which is aimed at helping people to complete the claim pack, will be almost halved in size. The main changes will be:
- the section on the disability element has been redesigned with the different descriptors grouped into physical, visual, hearing or other disability
- the sections on childcare and changes of circumstances have been cut as these are covered by separate leaflets
- the notes no longer include guidance for every single question on the form, such as address and date of birth
The notes will be available on the Revenue website and should be sent out with claim packs for the new tax year from 6 April.
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Healthy Start Scheme during 4-week run-on
The Healthy Start Scheme provides free vitamins and vouchers which can be exchanged for milk, fruit and vegetables. Pregnant women and families with a child under 4 can qualify if they receive child tax credit but not working tax credit. From April 2008, a change to the regulations allows people to qualify during the four-week period when working tax credit continues after stopping work, as long as they meet the other conditions. To qualify from April, the claimant must get child tax credit based on an annual income of no more than £15,575. It is also possible to qualify through income support or income-based jobseeker’s allowance.
For general information on the scheme, see www.healthystart.nhs.uk
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Annual declarations – extra 30 days
A new regulation comes into force from 6 April 2008 which allows claimants an extra 30 days to return their annual declaration. If a claimant has not returned their annual declaration to confirm their income by 31 July, a notice is issued stating that the payment stops and the claim is terminated. If the claimant returns the annual declaration within 30 days of the date of this notice, their claim is restored. If the claimant fails to meet this additional 30 day deadline, they will need to show good cause for the delay or make a new claim.
The regulation also confirms changes to how provisional payments are calculated as described in February’s e-bulletin. The other changes are a disregard of council tax relief for armed forces and rearrangement of sections on childcare in England and Wales.
Click here to view the regulation
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Budget
This year’s Budget emphasised the government’s commitment to eradicating child poverty and the importance of tax credits in achieving this goal. Alistair Darling stated that ‘the tax credits system is now working well, after some well-documented problems in the first year of operation’. The actual announcements concerning tax credits are:
- the child element of Child Tax Credit will be increased by £50 a year above earnings indexation from April 2009
- ‘vulnerable customers’ will be contacted by the Revenue during the 2008 renewals window and offered additional support to renew their claims and if they fail to renew, given help to get back into payment
- new services will be introduced in November and December 2008 to make claiming tax credits easier and quicker
- new ID authentication services will be introduced by the end of 2008 to help reduce error and fraud
The details of these last three points are not yet available, and further proposals will be set out by summer 2008.
Click here to read the Budget 2008 (Chapter 4)
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