Backdate/Revise WTC or is it UC

Dear All

Client was in receipt of PIP until 21/09/21, when she did not send back the review form PIP was ended. We have since managed to get that back into payment with a late MR now completed.

However, based on the PIP award the client was getting WTC - as a disabled worker, however WTC only discovered this at the end of last year and so (i) ended the WTC claim and (ii) generated an overpayment.

Now the client has PIP back can she revive the WTC claim by way of revision based on PIP falling back into place?

I guess she cannot make a new claim at all to WTC?

I was looking at this and ‘even where this crosses tax years or where the claimant is no longer in receipt of tax credits’

https://www.legislation.gov.uk/uksi/2021/44/made

Further, the explanatory memorandum to the order advises that -

‘The policy intent is to pay claimants the tax credits disability elements in line with the disability benefit award where they fulfil the reporting requirements within set time limits, even where this crosses tax years or where the claimant is no longer in receipt of tax credits….

However, HMRC has identified a gap in tax credits decision-making powers that inhibits the ability to give full effect to the backdating of tax credits disability elements. HMRC has limited powers to review tax credits decisions to take account of changes that occur after an award has been finalised. This legislative change will allow HMRC to review final tax credits decisions to determine whether there is retrospective entitlement to disability elements where claimants provide an in-time notification of an award of a qualifying disability benefit.’

Any thoughts would be appreciated.

Well it looks like the events in your case occurred after the commencement of that Order filling the lacuna that would otherwise have prevented a review.  Looks like a textbook example of exactly the mischief that the Order fixed - so yes, should get WTC back I think - as long as the successful PIP MR is notified to HMRC within one month.

HB Anorak

Thank you, I will need to check the date of PIP reinstatement, client has been referred to me so not seen her yet.

But that’s really helpful

Take care.