Tax Credits Technical Manual

Purpose:
The purpose of this guide is to provide a comprehensive overview of the law relating to Child Tax Credit (CTC) and Working Tax Credit (WTC), including entitlement, changes in circumstances, and how payments are made. This guide aims to inform claimants, local authorities, and other stakeholders about their rights and responsibilities under these tax credits.

Effects on Industry:
The implementation of CTC and WTC has significant effects on the social services industry, as it provides financial support to low-income families and working individuals. The changes in circumstances and claims procedures outlined in this guide will impact local authorities’ ability to manage and process tax credit applications. Additionally, the transition to Universal Credit (UC) will have far-reaching consequences for the social services sector, requiring adjustments in service delivery and budgeting.

Relevant Stakeholders:
The relevant stakeholders affected by this guide include:

• Claimants of CTC and WTC
• Local authorities responsible for administering tax credits
• Social services providers
• Government agencies overseeing tax credit policy and implementation

Next Steps:
To comply with the changes outlined in this guide, local authorities should:

1. Review their current policies and procedures for managing CTC and WTC claims.
2. Update their systems to reflect changes in circumstances and notification requirements.
3. Provide training to staff on new procedures and responsibilities.
4. Ensure compliance with tax credit legislation and regulations.

Any Other Relevant Information:
The transition to UC will likely involve significant changes to the social services landscape. Stakeholders should be aware of these developments and plan accordingly. This guide provides a foundation for understanding CTC and WTC, but further updates and training may be necessary as the UC rollout progresses.