[2025] UKUT 166 (AAC)

HMRC initially made tax credits decisions in respect of the claimant under the TCA 2002. The decision, for the period 6 April 2018 to 5 April 2019 and notified on 12 November 2018, detailed an award of £0 working tax credit (“WTC”) and £16,949.01 child tax credit (“CTC”). That award of CTC included the childcare element of WTC amounting to £8,057.612.

On 14 March 2019, the claimant made an online application for TFC and 30 hours free childcare (“30 Hours”). The circumstances in which that application came to be made is an issue addressed below in relation to Appeal 1, but in short the Tribunal found that he “did not intend” to make an application for both TFC and 30 Hours, having applied “in error” for the former. On 19 June 2019, the claimant wrote to HMRC stating that he had “mistakenly applied”. Mistake or not, HMRC contends that it is clear that the claimant in fact made an application.

The outcome of his application was: (i) the claim for 30 Hours was unsuccessful (because his child was too young to be eligible) and (ii) the application for TFC was successful and a childcare account was opened. (The child in question, R, was born 10 January 2017. That meant R was aged 2 years and approximately 10 weeks as at 14 March 2019. Regulation 3(1) of the Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations 2002 made provision, at the relevant time, for a qualifying child being one who has either attained the age of 3 years or will attain that age within 16 weeks beginning with the day on which the declaration was made in relation to that child. That was omitted on 1 December 2022 by virtue of The Childcare (Free of Charge for Working Parents) (England) Regulations 2022.)

HMRC wrote to the claimant on 25 March 2019. That letter (generated electronically) detailed an award of £0 WTC and £15,517.79 CTC, of which £7,040.51 was in relation to the childcare element of WTC. The period for which this award was made was 6 April 2018 to 19 March 2019.

On 11 December 2020 HMRC issued its decision made on 9 December 2020 under s.18 TCA 2002. The decision detailed an entitlement to £0 WTC and £10,936.78 CTC, of which £2,459.50 was in relation to the childcare element of WTC. The entitlement period was 6 April 2018 to 19 March 2019. That decision is the subject of Appeal 1.

On 8 and 9 August 2019 the claimant and his wife attempted to make a fresh claim for tax credits. These attempts were made via webchat and telephone. However, he was prevented from claiming tax credits because he lived in an area where Universal Credit had been rolled out. He said that HMRC was wrong to stop him making a claim. Although it appears to be common ground that he would ordinarily have been prevented from making a claim for tax credits, he argues that he could claim tax credits because his claim fell within a statutory exclusion to the general prohibition of new claims. That decision is the subject of Appeal 2.