Back dating tax credits

05 May

So long as you notify the Tax Credits office within one month of getting the DLA decision, any extra payments should be backdated in line with the DLA award.

You should take similar steps if you or your partner have health problems and get DLA or Personal Independence Payment in your own right.

Tax credits awards are usually based on previous year’s income.

However if your current year income falls by more than £2,500 your award is instead based on your income in the current tax year, plus £2,500.

This page explains how changes of circumstance affect the amount of tax credit you get.However if you wait until the end of the tax year you may have an overpayment which is likely to be recovered.In effect the system sets and pays you a provisional tax credit during the year and then the amount they should have paid you and the amount you were actually paid are reconciled at the end of the year.Where a tax credit claim has been made by a couple who were not together in the previous tax year, the household income will be the sum of the income of each adult in that tax year.Other changes don’t have to be reported until the end of the year.