New CTC claim - mixed age couple

My client aged 64 and her husband aged 68 have recently taken on care of their grandchild.  Grandmother works p/t and grandfather receives SRP and a private pension. Their total gross income is about £18,000. Grandmother used the tax credits calculator which showed they should be entitled to some CTC. However, it wouldn’t let her order a form - the message came up that she had to claim UC instead (she is in a UC full service area). So she put a claim in for UC, but entitlement was nil because income was too high.

It is my understanding that at present mixed age couples can claim tax credits instead of UC (though this will change on some unspecified date in the future). Therefore, I advised the client to phone the Tax Credits Helpline and insist that a form is sent out to her. She tried to do this but was told that because of where she lives she could not claim Tax Credits and would have to claim UC.

Have I missed something?  Are mixed age couples now excluded from making a new claim for tax credits? If they are still eligible to claim, how can she convince the TCO of this fact? Would it make things more straightforward if her husband tries to make the claim, as he is the one over pension age?

Hi Jo - you are right - mixed age couples can claim tax credits - it’s set out in article 7(4) of the 23 Order and commencement orders after that refer back to this one. I think you will just have to be super assertive in getting the claim form!

It has to be a joint claim - maybe you need to go down the complaints line to get a claim form - it’s not the helpline’s decision to decide whether they can claim or not

I think you might be slightly mixed up with UC and Pension Credit, whereby mixed age couples still have a choice of which to claim in full and live service areas.

With CTC, in a full service area, a working age person has to claim UC and can no longer claim CTC. However, someone who is at least the qualifying age for PC can still claim CTC in full service areas, see CPAG p.182.

So yes the husband should claim CTC I think.

Well you learn something new every day. Someone better tell CPAG cos that’s not how the Handbook says it is.

Yes I had a look at the handbook when I saw your post Paul and it does read like you say - but I’m pretty sure I’m right about the commencement order - I’ll check who does the CPAG pages and message them to see what they think…

Hi all

Handbook p.182 says ‘If you live in a UC full service area, you cannot make a new claim for CTC unless you are already entitled to WTC, or are at least the qualifying age for pension credit’ with a footnote to the commencement order Daphne quotes. Elsewhere it does say that a couple must make a joint claim for tax credits. Thanks for the feedback, there might be time to clarify this for the next edition to add ‘or your partner’ are at least the qualifying age for PC, as on p.1454.

Our latest e-bulletin quotes a HMRC e-mail to the Benefits & Credits Consultation Group on what should happen if someone in a full service area requests a tax credits claim form - helpline advisers have guidance that tells them to ask if you or your partner are over PC age, and if yes, to issue a claim form.
https://cpag-mail.org.uk/5MI-5FI75-9CL4WEK95/cr.aspx 

Mark