Pip appeal & tax credits

Louden

Hi all

My wife had her assessment in october and had her pip stopped in december 2017. We are now going to appeal. doctor is doing a letter and my wifes cpn is also going to support us 100%. She has dropped from high care low mobility to 0 points by atos. Our tax credits have also stoped this month, this has hit us very hard financially. I know that pip will be back dated if we win. will the tax credits be back dated?. Any feedback appreciated.

BenefitsTrainingCo

Louden, as Mike says it's not necessarily automatic that your tax credits would stop in this situation. Do you get working tax credit, child tax credit or both? It's possible that if you were getting working tax credit (WTC), and that included a severe disability element for your wife, that you now have too much income to get any award of WTC.

I can't think of any other connection between your wife's PIP and tax credits. If that is what has happened, then assuming you do get the PIP back at some point (I'm not sure if you've already been through MR stage), you should be able to get WTC back too. Once you have a positive PIP decision, you should get in touch with HMRC and tell them, so that your WTC can be reinstated, exactly as you suggest (that is, going back to the date of the changed PIP decision).

Will

BenefitsTrainingCo

PS, there don't seem to be any specific provisions allowing the revision of tax credits awards in this situation, Louden, so what you might need to do is to reclaim WTC & ask for the extra backdating once PIP is reawarded.

However, in the meantime, I would recommend contacting the Tax Credit helpline to see if you can find out what has happened, just in case it is something completely unrelated to the loss of PIP.

Will

Louden

Thanks for the advice will call them again and get clarification.

Thanks again

BenefitsTrainingCo

Louden,
Yes, I would do that. It would be good to find out some more.

In the meantime I've looked at the regulations to see what would happen if the tax credits problem is to do with the severe disability element of WTC, and you get your wife's PIP back.

I think that, as a claim for tax credits is made for the whole tax year, you shouldn't have to claim again for this tax year. The regs allow for the severe disability element to be paid from the date PIP is payable from (so, the same date your wife's PIP will be backdated to, if she's successful). You'd need to notify HMRC within a month of finding out of the PIP decision being changed. But that might only get you your tax credits back for this tax year.

Because the PIP appeal might go over into the new tax year (from 6 April 18), you would have to renew your tax credits then (even though you may not get anything to begin with). You might have to do this before you know what is happening to your wife's PIP, but it will be important to renew your tax credits so that you don't lose out. Again, once you tell HMRC that PIP has been awarded again, as long as you do that within a month of the changed PIP decision, you should get backdated tax credits too.

If it turns out to be something else (not to do with PIP), maybe try asking for advice on the forum, or from a local advice agency if you can.

Will