tax credits, can a new claim be made

my client has a daughter age 18 in education, daughter wants to leave education now and start again in September 2022 on a new collage course. Client gets child tax cr now and working tax credit also.
what is the situation when daughter leaves education now ? will client just continue on wtc , can she claim ctc again in September next year

Hi Diogenes

I think the key point is whether your client is working enough hours to be entitled to WTC without being responsible for a child - ie 16 hours a week if disabled or 60+, or 30 hours a week. It doesn’t matter if income is too high to receive a payment, she can get a nil award, which can be renewed next April but she must declare that she wants to renew it, and as long as she has not claimed UC (or notified to claim under managed migration). Then when daughter counts as qualifying young person again, she can start getting CTC again, technically a new claim for CTC is allowed under Article 7(5) of WRA No.23 CO if entitled to WTC. https://www.legislation.gov.uk/uksi/2015/634/article/7

But there could be a catch, depending when daughter turns 19 - must have been enrolled or accepted on FT non-advanced course before turning 19.

It might also be worth looking at the rules on temporary interruption to education, during which CTC could continue (CPAG handbook p.278)

Also worth checking she would not actually be better off on UC of course.
Mark

Mark Willis - 15 December 2021 09:20 AM

Also worth checking she would not actually be better off on UC of course.

On this point, it’ll be Important to remember that UC will only include a child until the Sep after they turn 19, but CTC can include children until they turn 20.

thanks Charles and Mark, mother is working 16 hours pw so looks like if daughter leaves college tax credits will stop