× Search rightsnet
Search options







Forum Home  →  Discussion  →  Covid-19 issues  →  Thread

Reclaiming Tax Credits

 < 1 2 3

forum member

Central and South Sussex Citizens Advice

Send message

Total Posts: 57

Joined: 12 December 2017

Charles - 21 December 2021 12:55 PM

The legislation allows claims to be made for the next tax year if there was an award in respect of the previous tax year.

In our case, we made a claim in the same tax year as that in which the previous award ended, relying on the fact that there was an award in the year before that too. The judge is saying that such a claim was not allowed as it was not for the full tax year.

Renewal claims are always for the full tax year, so they’re always fine. Potentially a non-renewal claim made at the beginning of a tax year (i.e. within a month of 6th April), where there had been an award in respect of the previous tax year, could also work.

Thanks for that very simple and clear (if disappointing :-( ) explanation.

forum member

Accountant, Haffner Hoff Ltd, Manchester

Send message

Total Posts: 1434

Joined: 27 February 2019

Charles - 21 December 2021 09:47 AM

We have received a decision from the UT in our first case.

HMRC’s appeal was allowed. The judge was fairly dismissive of their argument that the savings only apply to renewal claims, but still held that our client could not make a new claim due to the wording in the legislation that a claim can only be made “for the next tax year”, which he interpreted as meaning for the whole of the next tax year.

This would seem to leave open an opportunity to claim at the start of April of the following tax year however.

We are considering our options on how to proceed.

The UT decision in this case has now been (substantively) set aside, to be re-decided by a different Judge of the UT.