I have a client who it would seem has a very large overpayment of IS.
This is linked to a period during August 2001-March 2002 when she was working and claiming WFTC.

The overpayment seems to have occured when the client ceased employment and made a claim for IS as a lone parent-having the child element included.

It has been implied that the client was still receiving the child element of the WFTC, as well as the child element of the IS.
I have checked out the CPAG book for the 2001/2002 years and am left with the impression that WFTC was generally paid via the employer and hence if employment ceased then so would payment of WFTC.

Does anyone out there know whether it would have been possible for the child element of the WFTC to have continued to be paid at the same time as the DWP paying the child element in with the IS.



HELP

That seems unlikely.

WFTC didn't get paid in separate elements, the maximum credit was determined by adding up,

The adult credit
30 hours credit
child credits
partners, other than the first, in a polygamous marriage
disabled child tax credit (awards starting 04/10/00 or after)
childcare tax credit

This was the amount that was then reduced by the means-testing.

So if anything continued it would have been WFTC itself.

As to where the errors and responsibilities lie in that case....


More details needed, I suggest

WFTC was also (almost always) paid for 26 weeks without reference to any changes of circumstances, but would have constituted income for IS purposes if she stopped work. Unlike WTC, stopping work was not a relevant change of circumstances so the income trundled on for the rest of the 26 week period. There are some very very limited exceptions, such as the death of a child.

I find it hard to see how you could have a WTC overpayment as a result of claiming IS, but very easy to see how you could have had an IS overpayment while claiming WTC.

I do agree with you, but the original posting does say that it is a very large overpayment of I.S.

In which case both replies are correct but all you really need to know about WFTC is that it was income for I.S. purposes.

Now I could be wrong about this but my recollection is that there was no disregard from I.S. for WFTC.