Chapter TCTM04404
| Published date | 19 March 2016 |
| Record Number | TCTM04404 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
To help the progress of the proposed welfare reform changes in Northern Ireland, a number of supplementary payment schemes have been introduced to mitigate losses in benefit that may occur as a result of those changes.
The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2016/978Where a person’s entitlement to a benefit reduces, or is lost altogether, supplementary payments may be paid by the Department for Communities to compensate for the reduction or loss in benefit for claimants in Northern Ireland.
For the purposes of tax credits welfare supplementary payments are treated in the same way as the benefit they replace.
This means that payments under the following regulations are included as income:
Part 3 of the Welfare Supplementary Payments Regulations (Northern Ireland) 2016 (S.R. (NI) 2016 No 178);
Part 2 of the Welfare Supplementary Payment (Loss of Carer Payments) Regulations (Northern Ireland) 2016 (S.R. (NI) 2016 No 253).
However, payments under the following regulations are excluded as income:
Part 2 of the Welfare Supplementary Payments Regulations (Northern Ireland) 2016 (S.R (N.I) 2016 No 178);
Parts 3 to 5 of the Welfare Supplementary Payment (Loss of Carer Payments) Regulations (Northern Ireland) 2016 (S.R (N.I) 2016/253);
the Welfare Supplementary Payment (Loss of Disability Living Allowance) Regulations (Northern Ireland) 2016 (S.R (N.I.) 2016 No 250); and
the Welfare Supplementary Payment (Loss of Disability-Related Premiums) Regulations (Northern Ireland) 2016 (S.R. (NI) 2016 No 254).
Supplementary Payments
The following Supplementary Payments are included when calculating income for tax credit purposes:
- A payment as a result of the loss of contributory employment and support allowance paid under Part 3 the Welfare Supplementary Payments Regulations (Northern Ireland) 2016/178)
- A payment as a result of the loss of Carer’s Allowance on a caree’s transition from Disability Living Allowance to Personal Independence Payment and paid under Part 2 of the Welfare Supplementary Payment (Loss of Carer Payments) Regulations (Northern Ireland) 2016/253
Example
A tax credit claimant is in receipt of Carer’s Allowance (CA) for caring for her disabled brother who is in receipt of DLA. Following the introduction of the Personal Independent Payment (PIP), the brother is reassessed as having no entitlement. As a consequence the tax credit claimant loses entitlement to CA. The tax credit claimant...
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