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CPAG in Scotland Tax Credits E-Bulletin August 2011

Dear Colleague,

Welcome to the August 2011 edition of CPAG in Scotland's tax credits e-bulletin keeping you up-to-date with tax credits news and developments.
       
   
 
Contents

CPAG in Scotland news and events
    - Tax credits training

Tax credits news
    
    - 
Revenue response to equality consultation
    - Annual review
    - Postcode 
    - 
Q & A: What does universal credit mean for tax credits?
 


CPAG in Scotland news and events

Tax credits training
 

We are running the following upcoming tax credits training courses:

Course fees
Book a course

Tax credits news

Revenue response to equality consultation

CPAG in Scotland was one of four organisations who responded to the Revenue’s equality impact assessment of its Identity Authentication Service (IDAS), as reported in February 2011. All the responses highlighted familiar ongoing problems with the Revenue’s telephone service and enquiry centres, especially affecting disabled people and minority ethnic communities. The Revenue has now collated the responses and published a final report and action plan. The findings include the following:

• The Revenue acknowledges that a full equality consultation should have taken place prior to implementation of the service to fully identify and put in place potential improvements where feasible.

• Home visits are already available and considered for those who are unable to visit an Enquiry Centre, and may include recently bereaved; those with disabilities or caring responsibilities; and the elderly. The Revenue has no indication that customers who need home visits are not being provided with the service they require.

• The use of the Big Word interpretation service is publicised on the Revenue’s website and Enquiry Centres, and the use of family and friends is accepted as an additional interpretation route. The Revenue has no evidence to suggest this process is not working.

• Claimants with new immigration status are required to provide documents and are more likely to be required to attend an interview at an Enquiry Centre if they cannot pass security on the telephone. The distance to travel and lack of reimbursement for travel expenses was not addressed.

• A pilot process is underway for new claimants, where following failure to pass the telephone interview the customer is sent a pre-populated form rather than having to attend a face to face Enquiry Centre.

• A project is underway piloting implicit consent; testing what information or general advice can be provided by phone without evidence of the customer's consent.

• The Revenue does not propose to introduce processes to validate a tax credit customer’s identity with other government agencies. This will have to wait for universal credit (see Q&A below).

The Revenue’s final report is available here.

Annual review

Following last month’s e-bulletin news about the annual review, the Revenue has confirmed another change. At the end of each tax year, most tax credit claimants are required to make an annual declaration, stating their income for the year that has just ended. This finalises the old claim and serves as a renewal of the tax credits claim for the new tax year. The deadline for making the annual declaration for 2010/11 was 31 July 2011. Claimants who missed this deadline should receive a notice stating that their payments have stopped and their claim has been terminated. The rules allow for the claim to be restored if the claimant makes the declaration within 30 days of receiving this notice. The Revenue has confirmed that it will extend the period allowed to 60 days, as was the case last year. This was mentioned in the consultation group minutes in March and has recently been confirmed by e-mail to an e-bulletin reader.

The Revenue has also announced that it will do all it can to help people affected by the riots in England, for example if records have been lost or destroyed. It will review any penalties or charges that would normally be triggered by missed deadlines. A dedicated helpline – 0845 366 1207 – has been set up to help businesses and individuals adversely affected by the recent civil disorder.

Read the Revenue’s announcement here.

Postcode

The Revenue has announced that it now has one central postcode for the main Tax Credit Office address in Preston; PR1 4AT.  It is in the process of updating its letters and website.  Advisers are asked to double-check any postal addresses for the Tax Credit Office to make sure they are updated with the postcode PR1 4AT. 

Note that the definition of an appropriate office in the Tax Credits (Claims and Notifications) Regulations is Comben House, Farriers Way, Netherton, Merseyside or any other office specified in writing by the Revenue. This has also been the address on the return envelope supplied with tax credit claim forms. However, there appear to have been several different ‘L’ (Liverpool) postcodes for this address.

Q & A: What does universal credit mean for tax credits?

The Welfare Reform Bill currently going through Parliament provides for tax credits to be abolished and replaced by a new universal credit. This will be a new system of means-tested support for people in or out of work, and will include amounts for children, housing costs and disability. However, universal credit will not be introduced until October 2013 at the earliest, and there will be a gradual transfer of old claimants to the new system, so tax credits are not going away for some time yet. The main implications for tax credits are:

  • No new claims for tax credits from April 2014
  • Transfer of existing tax credits claimants to universal credit by October 2017
  • Similar rules expected on childcare, single/couple claims, overpayments and penalties
  • A new role for HMRC in providing ‘real-time’ earnings information

Watch this space for more information on universal credit coming soon.

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We would welcome feedback on the e-bulletin, please contact us at
acarr@cpagscotland.org.uk with your comments. Thank you.

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