Backdating of DP WTC post PIP appeal

Hi,
I have a client - long term claimant of DLA and disabled person’s WTC.
Lost entitlement when assessed at conversion from DLA to PIP.
PIP appealed - successful.
WTC now put back in payment - but we had to make a new claim for WTC and then lodge an MR to request backdating - MR successful and award backdated to March 2019.

Issue is:
No backdated amount forthcoming -  reason given - they don’t have to pay a lump sum and can make payments in instalments going forward. This is not in writing, this is verbal from helpline. Waiting for caseworker to call me back. Want to check is this is correct or not? Can they pay it in instalments? it’s about 15 months worth of backdate.

Checked all my guidance and cannot find answer relating specifically to this.

Any pointers welcomed.

Thanks,

Elaine

Hi Elaine
I would have thought the amount for a previous tax year should be paid in a lump sum under Tax Credits Act s30: Underpayments
(1) Where it has been determined in accordance with the provision made by and by virtue of sections 18 to 21B that a person was entitled, or persons were jointly entitled, to a tax credit for a tax year and either-
(a) the amount of the tax credit paid to him or them for that tax year was less than the amount of the tax credit to which it was so determined that he is entitled or they are jointly entitled, or
(b) no payment of the tax credit was made to him or them for that tax year,
the amount of the difference, or of his entitlement or their joint entitlement, must be paid to him or to whichever of them is prescribed

If there is an outstanding overpayment then an amount could be recovered from the arrears, but this sounds like postponement of payment which is only done under limited circumstances: https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm08105

Was it a SDP case so that a new claim was allowed?

It is clearly the client’s money so it is a but cheeky to refuse to pay it - complain if necessary.

Mark

Hi Mark,
yes it was the loss of SDP and then the reinstatement of it after successful PIP claim.
Thank you for your answers, very much appreciated. and yes new claim via SDP (within HB)

Regards,
Elaine