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Benefit cap query, not claimning for extra children
Client was currently going to be just into a the benefit cap by a couple of quid when it comes in next month. She now has a new child. If she claims child ben and CTC for this child, she will lose it all from HB and be no better off. She asks if there are any downsides to just staying as she.
We are advising her to claim the CTC and child ben, but what are the actual downsides?
She is not under-occupying either way. Is there any possibility of Child Ben being treated as notional income? Child support might be a problem with no Child Ben? Anything else?
Apparently child benefit have told her that she must claim for all children or none, I am unsure of the basis for that.
Don’t know if it’s possible but the HB cap won’t necessarily be applied immediately but over a few months from 7 Nov - so ( even if it were possible ) - so could she be missing out on several weeks extra benefit for the new child ? (Also could she potentially risk increased delay/hassle if circs change and she need to claim for all of them).
For it be worthwhile there has to be a further cap-related penalty beyond the effect of the cap itself - the only example I can think of is the CTRS in Telford and Wrekin where they doubly-punish capped claimants be removing their CTR.
Thanks Jon. I have read that we are likely to be near the start of the roll-out, but yes, she is certainly missing full entitlement prior to the cap coming in.
There is nothing special in our local CTR scheme about family size.
I have not read too deeply into this, but the terms of s141 of the SSCBA 1992 do suggest to me that maybe you can’t pick and choose who is included, i.e. Child Benefit is a single benefit which you either claim for your eligible children, or you don’t.
Overall, I can’t see a strong reason to try and avoid the cap in this way.
To maximise income, I think she’d be best off waiting the full 3 months before notifying CB & CTC of the new child. Then she’d get a lump sum arrears payment of CB/CTC and her HB would not be further capped until after the change in CB/CTC is processed.
I hadn’t thought of that 😊. However, CTC can only be backdated one month now :(.
I have not read too deeply into this, but the terms of s141 of the SSCBA 1992 do suggest to me that maybe you can’t pick and choose who is included, i.e. Child Benefit is a single benefit which you either claim for your eligible children, or you don’t.
Just for future ref, and having now read a bit further, I should modify that. R(F)3/96 puts it:
The language of that provision, like the language of all the other provisions cited, clearly proceeds on the basis that a claim has to be made for each specific child, and its success depends upon the eligibility of that child.
http://administrativeappeals.decisions.tribunals.gov.uk//Aspx/view.aspx?id=631
HMRC’s technical guidance interprets this as:
“A separate claim must be made in respect of each child for whom an award of benefit is sought.”
https://www.gov.uk/hmrc-internal-manuals/child-benefit-technical-manual/cbtm02010