Can I backdate my claim to tax credits?
This page tells you about the date of your claim or change and treating the claim or change as if it was made earlier or backdating.
The date you are paid tax credits from is usually the date HMRC receive your claim form – this is your date of claim. However, you can be paid for an earlier period in certain circumstances. This is called backdating.
|The Government is gradually introducing universal credit, a new benefit which will eventually replace tax credits, and some other social security benefits. Universal credit is being introduced geographically and in areas where the full (digital) service is available, it may no longer be possible to make a new claim for tax credits. Existing tax credit claimants are expected to be moved across to universal credit between 2019 and 2023. You can find out more about this in our universal credit section.|
Can all claims be backdated?
If you met the qualifying rules before your date of claim, HMRC will backdate your claim up to 31 days.
If you are claiming child tax credit (CTC) only or CTC and working tax credit (WTC), this should happen automatically.
If you are claiming WTC only, you should attach a letter to your claim form asking for this backdating.
You will only get backdating for the period you met the qualifying rules; so if you only met the rules, for example, two weeks before your date of claim, you will only get two weeks' extra money. You should check your tax credits award notices carefully to make sure any backdating has been included properly.
If you think you should have received backdating and have not, then once you get your first award notice you will need to ask for the decision to be reconsidered, and if necessary, then appeal the decision. See our 'appeals section' for information on how to do this.
If you claimed childcare support through the Tax-Free Childcare scheme before claiming tax credits, the 31 days backdating may be limited to the date your TFC support ended as you cannot claim TFC and tax credits at the same time. The exception to this is where you have opened a TFC account and subsequently closed it without paying any money out of that account in which case the tax credit claim can be backdated by up to 31 days into the TFC entitlement period.
See below for information about backdating and universal credit.
Can I backdate the date of a change?
If your circumstances change while you are on tax credits, and you qualify for extra elements to be included, you should contact HMRC straight away so they can be added to your claim. If you met the rules for the new elements before you told HMRC about the change, they can backdate the change to your award up to 1 month, but you will need to ask for this.
Are there any exceptions to the 31-day limit?
Some claims (and changes of circumstances) can be backdated longer than 31 days. This is where:
- a qualifying disability benefit is paid, or
- an asylum seeker is granted refugee status.
These are the only exceptions to the 31-day/one-month backdating rules. Some disability benefit claims (and asylum applications) take months, even years, to get sorted out and you could miss out on a lot of tax credits if you do not ask for backdating at the right time.
Backdating and disability elements
The disability-related elements of CTC and WTC are only included if you, or someone in your family, get certain disability benefits or payments. Sometimes, these start being paid once you have made your tax credit claim, or you need to wait until the benefit starts to be paid to qualify for WTC. If you have had to wait to hear about getting a disability benefit paid, you might want to have your tax credits backdated to the date you claimed it.
New claims (WTC)
Some people may only qualify for WTC if they meet the criteria for the disability element of WTC. If you have claimed a relevant disability benefit that will give you entitlement to WTC (including the disability element) you need to make your claim for WTC within 31 days of the decision on your disability benefit.
If you make the claim within 31 days, your WTC will be backdated to the start date of your disability benefit (as long as you met the other qualifying conditions for WTC during that period) or, if later, the date you started to meet the other qualifying conditions for WTC. This means that if it takes some time to decide your disability benefit entitlement, you will not lose out on any WTC.
If you claim universal credit you cannot also make a claim for tax credits to cover a backdated period leading up to your universal credit claim. See below for more information.
Andrea is single, aged 30 and works 25 hours a week. She is not entitled to WTC because she does not work 30 hours. Andrea applies for personal independence payment (PIP) due to her disability on 1 May 2018. She receives a letter dated 6 December 2018 awarding her PIP from 1 May 2018. Providing she makes her claim for WTC within 31 days of 6 December 2018, her WTC claim will be backdated to 1 May 2018.
If she does not make the claim within those 31 days, she can still claim WTC but will only receive 31 days' backdating.
Changes of circumstances
If you now qualify for extra elements to be included because you (or someone in your family) start getting a qualifying benefit, you should contact HMRC straight away so they can be added to your claim. You should be able to have the extra elements added in from the date you claimed the disability benefit provided you tell HMRC within one month of the date of the decision on the qualifying benefit claim.
Sandra applies for Disability Living Allowance for her daughter Amy on 10 May 2018. The DLA is not awarded until 12 October 2018. As long as Sandra tells HMRC that Amy has been awarded DLA within 1 month she will receive backdating of the disability element of CTC to 10 May 2018.
What happens if I have been granted refugee status?
If you are granted refugee status, your claim for tax credits can be backdated to the date you claimed asylum, but only if you claim tax credits within one month of the decision granting you refugee status. Any backdated tax credit payments you get will be reduced by the amount of Government support you were given for living expenses during the time you were waiting for your asylum claim to be decided. If you have already had a backdated payment of a social security benefit reduced because of this, you should be paid the full backdated amount of tax credits.
If you claim universal credit you cannot also make a claim tax credits to cover a backdated period leading up to your universal credit claim.
What if my change of circumstances reduces my tax credit award?
If your change means you are entitled to a lower amount of tax credits, HMRC will backdate the change to when it happened, regardless of when you tell them. You must tell them about some changes that happen within a month, otherwise they might charge you a penalty for not telling them. See our section on changes of circumstances to find out more about what you need to notify and when.
Universal credit is gradually replacing tax credits. In some areas, you can no longer make a claim for tax credits unless certain exceptions apply.
If you claim universal credit our understanding is that you cannot also make a claim for tax credits to cover a backdated period leading up to your universal credit claim. For example, as explained above, you may only qualify for working tax credit if you qualify for personal independence payment because you work only 20 hours a week. It can take some time for your PIP claim to be decided and so as long as you claim tax credits from HMRC within 31 days of the PIP decision, your working tax credit will be backdated to the first day of your PIP claim. This means that if the PIP claims process takes 10 months, you will get 10 months of backdating working tax credit (assuming you meet all other qualifying conditions throughout that period).
Let’s suppose you live in a postcode area that has already moved into the universal credit full (digital) service, unless certain exceptions apply, you will not be able to claim working tax credit when you get your PIP decision. So you will need to claim universal credit instead. However, the rules stop you from also putting in a claim for tax credits to cover the 10 month period while you were waiting for your PIP decision and you will be limited to the normal universal credit backdating rules. These allow backdating for up to one month and only in limited circumstances such as ill health, disability or where the system has failed. We are seeking clarification with HMRC and DWP on this point.
This page gives an overview of backdating tax credit claims and changes. For more detailed information, visit the following page on our website for adviser.