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Tax credits and DLA.

(11 Posts)
hickorychicken Sun 12-Jan-14 19:11:45

Weve been awarded high rate Dla for eldest dd and informed tax credits, they said not to call until mid feb as it takes a while to process, does anyone have any experience of this and will we get a back payment and how is calculated?

lougle Sun 12-Jan-14 19:53:50

Hi hickorychicken, when you say not to call until mid february, I take it you mean 'not to call to check that the increase has been processed'?

The DLA should go from the day it was awarded to you, as long as you informed them as soon as you got the decision.

All tax credit payments are calculated daily, so you will get, say, 100 days of the child with disability rate (£3015) and 100 days of the child with severe disability rate (£1220).

So, using the 100 day example, you'd have:

£3015 + £1220 = £4235 for the year

100 days:

£4235 x100/365 = £1160

So £81 per week extra.

lougle Sun 12-Jan-14 19:56:55

That's if you currently get tax credits, of course.

However, if you are not currently working, and then claim Carer's Allowance, which is £59.75 per week, that income will be deducted from your tax credit award at a rate of 41p in the £1.

So, the £81 per week extra tax credits will be reduced by:

£59.75 x 0.41 = 24.50 ish.

Which means that you'd actually get an extra £56.50 ish in tax credits, but also £59.75 in carer's allowance.

If you get Housing Benefit or Council tax benefit, you should inform them also, because you get a premium on the award to counteract the increase in those benefits.

Frusso Sun 12-Jan-14 20:07:55

I spoke to tax credits last week about my dcs DLA going up. They said it can take up to 6 weeks to process, and to call in exactly 6 weeks if I hadn't heard anything to get a progress report.
As long as the DLA start date (or start of increase) is within a certain time frame they will back date it. I'm not sure what the time frame is but they said mine would be backdated to when it was changed with DLA (which for me was the start of November, but I'm not sure what the timeframe is for a new award)

SoonToBeSix Sun 12-Jan-14 20:09:54

It took about six weeks from when I informed tax credits about my dd's dla award to reduce a payment. They backdated it from the start date of the dla award.

hickorychicken Sun 12-Jan-14 21:00:38

ty for all replies, very helpful.

hickorychicken Sun 12-Jan-14 21:14:50

Ok now im worried, i applied for carers on the same day as informing tax credits of dla award so i am recieving c.a (backdated and 1st payment) so havent told tax credits yet ( will do 1st thing tomorrow morning) so if they have processed claim already and a backdated amount is being sorted, will i have an overpayment and get in trouble?

lougle Sun 12-Jan-14 21:27:56

You won't get in trouble. In fact, your increase in income will most likely be ignored, if your tax credits are based on last year's income. It will only affect it if your tax credits award is based on your in-year earnings.

Don't worry. Just phone them tomorrow and say that you had an award of carer's allowance on x date.

SoonToBeSix Sun 12-Jan-14 21:42:04

No you don't need to tell tax credits amount carers allowance until next April.

hickorychicken Mon 13-Jan-14 08:45:24

Checked my bank this morning and there was a backdated amount, ty for replies smile

SoonToBeSix Mon 13-Jan-14 12:37:27

Brilliant

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