when our client made an initial claim for ctc HMRC took their usual inrodinate amount of time to get it on the system but were persuaded to make interim manual payments. We are very concious that when such claims finally get formalised this means that a recoverable overpayment is created (such a great system).

However in this case, rather than creating an overpayment HMRC have simply spread the years remaining entitlement over the remainder of the year so she is now only getting £30 per week, which is less than the minimum lone parent award. Can they do that?

There's no doubt that she did get excessive manual payments at the outset - somehow they managed to issue £900+ in one day in May! - but inevitably our client didn't save or budget and I doubt that HMRC made clear to her at that time that this is the position she would be in for the rest of the year.

I assume that if we insist they increase the weekly payment it would then be treated as an overpayment next year?
Does anyone have any experience of this or any suggestions?

thanks
Caroline