WTC data transfers to NIRS2

Charles Ellinson made this Rhyddid Gwybodaeth request to Cyllid a Thollau Ei Mawrhydi

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Roedd y cais yn rhannol lwyddiannus.

Dear HM Revenue and Customs,

I would like all guidance/manuals relating to the data exchange between the tax credits computer system and NIRS2 with regard to NI credits for WTC recipients (which I understand takes place twice each year).

In particular I would like to know how HMRC in practice complies with the NI Credits legislation entitling WTC recipients to Class 3 credits.
The reason I ask this because the legislation is not clear on a number of points relating to this entitlement:

The legislation refers to WTC being "paid to a person in respect of a week"(S.I. 2015/173 Reg. 30) and "where working tax credit is paid for any week" (S.I. 1975/556 Reg. 7C).

1) What does "paid" mean in this context? Does it include claimants entitled to WTC but whose 'daily rate' of WTC is nil due to high income"?

2) If such claimants are not included, does it at least include claimants who are paid ANY element of WTC. For example, does receipt of the childcare element qualify even if the claimant does not receive any other element of WTC? (And if not, what legislative provision allows this?)

3) If a nil daily rate does not give entitlement to NI credits, what will happen to a claimant in receipt of WTC at the start of a year who then receives a large amount of income at the end of the tax year? It will have turned out that they were not entitled to any amount of WTC from the start of the year, so will the NI credits be removed from the earlier part of the year?

3) If a claimant has entitlement to WTC for part of a week, is the condition "in respect of a week"/"for any week" fulfilled for that week?

The legislation refers to "the member [of the couple] to whom working tax credit is paid".

4) Where there is entitlement to the childcare element, the WTC will often be split between the two members, with one receiving all elements except the childcare element, and the other receiving the childcare element. Which member will receive the NI credit in this case? What legislative provision allows the other member to be excluded?

Yours faithfully,

Charles Ellinson

foi.team@hmrc.gsi.gov.uk on behalf of Team, FOI, Cyllid a Thollau Ei Mawrhydi

Our ref: FOI2018/02542

Dear Mr Ellinson,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 19th November which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

Yours sincerely

HMRC Freedom of Information Act Team

foi.team@hmrc.gsi.gov.uk on behalf of Team, FOI, Cyllid a Thollau Ei Mawrhydi

1 Atodiad

Dear Mr Ellinson,

I am writing in response to your request for information, received 19th
November.

Yours sincerely,

HMRC Freedom of Information Team

Dear [email address] on behalf of Team, FOI,

I am writing with regard to the reply you gave to my FoI request on 11/12/2018. Your reference number is FOI2018/02542.

I had asked:

"3) If a claimant has entitlement to WTC for part of a week, is the condition "in respect of a week"/"for any week" fulfilled for that week?"

Your reply was:

"WTC is awarded on a daily rate not a weekly rate. Actual start and end dates are used when updating the NPS system."

That does not answer my question. I know WTC is a daily benefit, and I understand that actual start and end dates are used. My question was if the claimant will be entitled to a NI credit for such a week. See, for example, Reg 7B of the 1975 regulations which explicitly allows the disability element of WTC to provide a credit even if entitlement is only for a part of the week. Is that the same for regular WTC credits?

I also asked:

"4) Where there is entitlement to the childcare element, the WTC will often be split between the two members, with one receiving all elements except the childcare element, and the other receiving the childcare element. Which member will receive the NI credit in this case? What legislative provision allows the other member to be excluded?"

You replied:

"The customer receiving the NI credits will be the person nominated to receive the WTC. The TC600 clearly states, especially where both persons are working, that they need to decide which one HM Revenue and Customs should pay. The notes also explain about NI credits and for the customer to nominate which person will qualify for the NI credits. The claimant can change the nominated recipient at any time by reporting this fact the HMRC."

The second half of my question still stands. What legislative provision allows this? The legislation simply says that the member of the couple who is paid the WTC receives the credit. In this case, despite the nomination, BOTH claimants are receiving WTC, so legally BOTH should be entitled to the credit.

Yours sincerely,

Charles Ellinson

foi.team@hmrc.gsi.gov.uk on behalf of RIS FOI Mailbox, Cyllid a Thollau Ei Mawrhydi

Our ref: FOI2018/02771

Dear Mr Ellinson,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 15th December which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

Yours sincerely

HMRC Freedom of Information Act Team

foi.team@hmrc.gsi.gov.uk on behalf of FOI Central Team, Cyllid a Thollau Ei Mawrhydi

1 Atodiad

Dear Mr Ellinson,

I am writing in response to your request for information, received 15th
December.

Yours sincerely,

HMRC Freedom of Information Team