Clients not getting a main benefit

Clients who do not get a main benefit, and clients getting New Zealand Superannuation and Veterans Pension, will get their Working for Families Tax Credits payments from Inland Revenue.

The amount of Working for Families Tax Credits included as chargeable income is the actual weekly rate payable to the client. If the client has chosen not to get Working for Families Tax Credits, they will need to take steps to obtain this assistance, and in most cases you should encourage them to get it as a weekly payment. There may however be circumstances where it would be more beneficial for the client to get an end of year payment, such as for those who have fluctuating income, especially those who expect more income at the end of the tax year than the beginning.

If it is more beneficial for them to get Working for Families Tax Credits as a lump sum at the end of the tax year, you need to estimate the amount they would get if paid on a weekly basis. You need to include this estimated weekly amount of Working for Families Tax Credits as chargeable income and note CMS stating that the client will get a year end payment and that you have estimated Working for Families Tax Credits for the client.

When assessing Working for Families Tax Credits as chargeable income, consider the following:

• Shared care - family tax credit and Best Start tax credit
• Grace period for in-work tax credit
• Abated Working for Families Tax Credits
• Year end Working for Families Tax Credits
• Estimating weekly Working for Families Tax Credits