Year end Working for Families Tax Credits

People can get their Working for Families Tax Credits as a weekly, fortnightly or end of year lump sum.

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

For more information about how to do this see:

• Estimating weekly Working for Families Tax Credits

When a non-beneficiary client decides to change to weekly or fortnightly payments of Working for Families Tax Credits they must contact Inland Revenue. It may take Inland Revenue time to reassess the client's entitlement. When there will be a delay in Inland Revenue providing verification of Working for Families Tax Credits, you must enter the estimated weekly amount of Working for Families Tax Credits payable to the client.

Estimated Working for Families Tax Credits should be updated with actual Working for Families Tax Credits when the client receives verification from Inland Revenue.

Where the estimated amount of Working for Families Tax Credits is different to the amount verified by Inland Revenue, you will need to reassess the client's Temporary Additional Support.