7 April 2017

Update on child disability element Autumn Statement 2016 announcement

In the Autumn Statement on 23 November 2016, the Chancellor announced that HMRC would be making backdated payments for people who could have been getting the higher rate of child element in their tax credit award because they have a disabled child who meets the qualifying conditions.

At the time of the announcement, it was confirmed that where the qualifying disability benefit is being paid by DWP, HMRC will award the extra child disability rates from 6 April 2016 without claimants needing to contact them.

HMRC have confirmed to us that they have now completed this adjustment exercise, updating every identified customer's 2016/17 award to reflect the higher award of CTC, and issuing lump sum payments to reflect entitlement since April 2016. HMRC intend to run a further scan to ensure that all eligible claimants have been identified.

They are also working closely with the DWP on improvements to the notification process. Under the legislation, the burden remains on the claimant to contact HMRC if they are awarded a disability benefit for their child as this may increase their tax credit award.