hi guys

i have come up with my first tax credits appeal at tribunal. Whats happened is my client has recieved Nass payments amounting to £14068.87 for a period of 2 years. When his asylum application was successful he made a claim for income support. The total amount deducted from his income support was £6409.62 and client recieved £2995.19. The remainder that id left from the nas payments is £7659.25. The CTC entitlement for client was calculated as £7310.04. therefore, HMRC state that there would be no entitlement to CTC as the nass payments exceed the tax credit entitlement.

Does any one how this works because i am not entirely sure as i have never really had to do one of these?

thanks
salma

hi guys
i have not had any reply from anyone regarding this but it would be helful if anyone knows if nass payments are made, is that amount then deducted from the tax credits entitlement?

thanks

There is some reference to this in the HMRC manuals, however it just mentions deducting NASS payments that have not been deducted by DWP. See here http://www.hmrc.gov.uk/manuals/ntcmanual/specialistsec_pfa/pfa_info.htm

I know that there have been questions raised in the past about how this is done. This is a quote from a WRA working in this area when I was doing some research into the problems refugees face when claiming tax credits:

'Firstly HMRC seem to take the total amount of support paid to refugees by NASS, whilst awaiting a decision on their application & deduct this from CTC that would have been due. I have heard of cases where no attempt is made to deduct NASS support paid in the relevant period & it is often deducted for periods before children were even born. Some cases are more complicated, particularly where couples have separate applications which are dealt with at different times & NASS support is paid for different periods. The DWP deal with these cases by attributing a proportion of the NASS support paid to each adult or child. HMRC seem take into account the full amount irrespective of the circumstances & in one case have take NASS support into account twice.'

That may give you a starting point to check that HMRC have apportioned the NASS correctly.

Victoria

hi sorry didnt reply earlier as i have been really busy

but anyhow thanks for te reply and the help

salma

Wed 11-Mar-09 09:47 AM by shawn

(Edited to shorten link)

This is an example of a little knowledge being a dangerous thing (especially when it is in the hands of an HMRC Decision Maker!)

NASS payments for children under 16 ARE made at the same level as the would be paid would received in child element CTC (47.45), whereas payments to adults are made at a lower rate than the IS personal allowance.

This means that PROVIDED full NASS payments had been made, then there would be no child element due for children up to the age of 16. Thus far what the HMRC are telling you is correct.

HOWEVER there will always be a family element due, as NASS do not make an equivalent payment.

Moreover NASS payments for all 16-18 year olds, whether they are dependent young people or not, are made at a weekly rate of £35.65 and which goes down to £32.89 for 18-25 year olds. So anyone who has dependent young people over 16 in their household should receive the difference between these amounts and the chid element as well.

Current support amounts

Hi there

So, just to get this straight, if I'm applying for tax credits for the time when my client was in receipt of NASS support, during which she had a child, I'd be requesting the family element and the baby element minus £260 (that being the £5 a week extra a parent receives if the baby is under 1). Is that right?