Only had overpayments to deal with. Client has been missing out on a disabled child and severely disabled child element of Tax Credits for several years. Anyone dealt with this before and how likely for a decent backdate?
Cheers

s15 of the TCA 2002 normally limits backdating to 3 months if there is a beneficial increase in the maximum tax credit. There are also the usual extended backdate possibilities if awaiting the outcome of a disability benefit decision.

But s21 is far groovier, and allows 5 or 6 years backdating. Trouble is you need an official error (which means an error uncontaminated by claimant error). So, did client take any steps to notify award of child DLA etc? Did HMRC fail to act? Whether or not client contaminated the error can be ventilated at a tribunal (since this is about entitlement).

Failing these possibilities, can't think of any more.

Steve

The client isn't really sure about what she told them. Her son has had DLA High and High since before she ever calimed TC's so I would hope there has been an official error.
Cheers for that Steve much appreciated.
John

Might it be worth asking for a copy of the original tax credit claim form to see if it is on there?

Victoria

Have already done so. Won't hold my breath waiting for it though.
Cheers

I've had 2 such cases in the last month. DLA now seem to be informing HMRC - who then send out letters about the extra money. The problem being that instead of prmopting happiness with the increase it's leaving the claimants wondering why this wasn't done sooner. Both my cases had the disability element but no severe disability element.

The 1st person raised it along with a whole mountain of other issues (I'm only a generalist adviser...), and I just suggested he could return if he had any evidence that he'd told them at any point (and explained he could DPA them for all their information if necessary).

The 2nd person came in about only this issue. He got WFTC for 01/02 and 02/03, then switched to WTC/CTC. His daughter's had HRC DLA for the whole time. He believes he has _all_ paperwork for the last 15 years including all tax credit information, copies of forms, letters etc. He's also looking into it - which may be interesting. He's coming back if he finds any evidence he told them and it wasn't acted on, or that their information has been misleading and failed to ask.

I've checked one of the old forms/guidance notes (04/05 as that's what I had handy) and it certainly is explained, with a simple tick box on the form.

The problem is these client's aren't filling in the form every year. They're renewing by phone.

My 2nd client believes one of the older form asked for rates of DLA, which he answered correctly (though this may have been WFTC which had no severe disability premium). He also points out that the checklist now includes checking the rate of DLA specifically but he believes this was not always the case (I don't have an old one to check - but I do believe there have been additions).

It's interesting to try and work out exactly what information has been seen by those doing renewals only - and whether this has correctly reflected changes in the claiming process and the gradual improvement of forms and information. I also can't recall how they switched people from WFTC to CTC/WTC - though I was still an adviser back then.

I'm going to be very suprised if there is a case here - between the guidance, and the duty to check awards, and the change of circumstances lists etc.

I want to be at least partly positive that they're making sure this shouldn't be happening in future, but I can see why someone who has missed out for over 5 years might not see it like that.

I'm interested in how your case goes, and I suspect we'll all be seeing a lot of clients about this.

Victoria J
Leytonstone CAB

Interesting development in this case. Client had contacted TCO and had been advised that as she had failed to advise them of her sons DLA the severely disabled child element could only be backdated for 3 months. Clients daughter had also been awarded DLA but client did not have disabled child element included in current award. Call to intermediaries line to try to chase this up resulted in the adviser telling me that there was no restriction in the length of time that these elements can be backdated for. Client should receive the amended award letters within the next couple of weeks. If this is correct (still can't find where in the legislation this is specified) then client will get severely disabled element backdated to 2006 and the disabled child element to 2007.

Client received full backdates for both severely disabled and disabled child elements to the above dates.

Hi john

i dont suppose it has become any clearer as to why the disabled child element was backdated in these cirumstances without official error being shown?
i have an imminent tribunal case on the same subject whereby HMRC are refusing to backdate further than 3 months because they state they were not informed of the impending DLA claim. they have gone back 3 months from the date they were told of actual award. before reg 26 was changed from april this year, as i understand it this was the correct decision (it was 2008). we are appealing on the grounds that my client did actually inform them of impending claim so our argument is along different lines. however i would obviously be very interested to hear how your client managed this in case it throws up another angle i can use.

cheers