TCTM11009 - Transition to Universal Credit: Appeals and revised tax credits decisions

The Universal Credit (Transitional Provisions) Regulations 2014, Reg 13

Where a person who has an award of universal credit has a determination of an appeal against a tax credits decision any entitlement determined by the appeal shall terminate on the day before the first date of universal credit entitlement.

Where a decision relating to the claimant’s entitlement to a tax credit is revised under section 19, 20, 21A of the Tax Credits Act 2002 or regulations made under section 21 any entitlement determined by the revised decision shall terminate on the day before the first date of universal credit entitlement.

Example:

On 20/08/2021 HMRC make a s18(1) decision to the effect that entitlement to tax credits ended on 01/02/2021 and a s14(1) decision to the effect that the claimant isn’t entitled to tax credits for the 2021/2022 tax year. The HMRC decision is upheld at Mandatory Reconsideration stage so the claimant goes on to appeal to the First-tier Tribunal. On 01/11/2021 the claimant makes a claim to UC. On 15/03/2022 the First-tier Tribunal overturn HMRC’s decision. HMRC then revise the s18(1) and s14(1) decisions made on 20/08/2021 and the claimant becomes entitled to tax credits for the period up to the day before the UC claim was made i.e. 31/10/2021.