Disabled
Person's Tax Credit
(Administered
and paid by the Inland Revenue)
Type:
Non-contributory. Income Related.
A
new Fast Track is available for people who become long-term sick or disabled
while they are in work.
Who
is entitled ? A customer who satisfies the following conditions:-
(1)
they are aged 16 or over;
(2)
they have an illness or disability which puts them at a disadvantage in getting
a job;
(3)they
are working at least 16 hours a week.
They
can be self employed or working for an employer.
The
customers job must be expected to last a minimum of five weeks from the date of
the application.
If
either the customer or partner work for 30 hours or more each week an extra
credit of £11.45 per week will be awarded. If the customer or partner has more
than one job, they will qualify for the credit if the total number of hours
worked adds up to 30 or more. It is not possible to add the hours the partner
works to the hours worked by the customer to satisfy the 30 hour rule.
(4)
they have been receiving:
either
Incapacity Benefit, at the short term (higher) rate, or long-term rate; or
Severe
Disablement Allowance; or
a
disability premium, or a higher pensioner premium paid with Income
Support/Jobseeker's Allowance (Income based), Housing Benefit or Council Tax
Benefit,
for
at least one of the 182 days before the application; or
they
receive either:
Attendance
Allowance; or
Disability
Living Allowance; or
Industrial
Injuries Disablement Benefit which includes Constant Attendance Allowance; or
War
Disablement Pension which includes Constant Attendance Allowance or a mobility
supplement; or
they
have an invalid three wheeler from the DSS or other vehicle provided under the
Invalid Vehicle Scheme at the date of application; and
(5)
they or any member of their family are not receiving Working Families' Tax
Credit; or
(6)
they have undertaken some relevant training for work.
Disabled
people undertaking training for work have 8 weeks to find a suitable training
for work course after ceasing to receive Incapacity Benefit short term (higher)
rate, or long term rate, or Severe Disablement Allowance. After completing the
training the person has a further 8 weeks in which to find a job and apply for
Disabled Person's Tax Credit.
Training
for work includes Government courses and non Government courses. The non
Government courses include any training received on a course which a person
attends for 16 hours or more a week, the primary purpose of which is the
teaching of occupational or vocational skills.
(7) Capital limit: Disabled Person's Tax Credit is not payable if the total capital exceeds £16,000. If the capital is between £3,000.01 and £16,000 (inclusive), the customer is treated as having extra income. A weekly income of £1 is assumed for each £250, or part of £250 of capital above £3,000.
How to apply
Apply
on form DPTC1 available from Benefits Agency offices, Inland Revenue offices and
the Disabled Person's Tax Credit Helpline.
Special
Application packs for the Fast Track can be requested from the Disabled Person's
Tax Credit Helpline (0845 6055858 or Textphone 0845 6088844).
Lone
parents who are starting work, and who have been getting Income Support or
Jobseeker's Allowance (Income based) for 26 weeks without a break, may be
eligible for an additional two weeks Income Support. This payment, known as Lone
Parent's Benefit Run-on, will help lone parents with their living expenses until
they receive their first pay, or until their Working Families' Tax Credit or
Disabled Person's Tax Credit applications are processed.
How
is it paid ? Payment of Disabled Person's Tax Credit can be made by employers
through the wage packet, in the form of a tax credit if the employer operates a
PAYE system. If the employer does not operate a PAYE system then payments will
be made either by:
Payment
direct into a bank or building society account every two weeks;
or
Payment
at a Post Office every week.
How long can it be paid for ?
Disabled
Person's Tax Credit is awarded for a fixed period of 26 weeks and is not
re-assessed if the customer's circumstances change.
However,
entitlement ceases immediately if:
(1)
a single person or a lone parent dies;
(2)
both the customer and partner die;
(3)
an award of Working Families' Tax Credit, Disabled Person's Tax Credit, or
Income Support/Jobseeker's Allowance (Income based) is made in respect of a
child or young person who has been included in the Disabled Person's Tax Credit
assessment.
Rates
of Disabled Person's Tax Credit
Effective
from 05 June 2001
Basic
(Adult) credit
£61.05
Single
people
£91.25
Couples/Lone
Parents
£11.45
30
hour tax credit
(Payable
if the customer or partner is working 30 hrs or more a week, - one payable per
family)
Child
credit:
(one
paid in respect of each child- the amount depends on their age when Disabled
Person's Tax Credit is awarded)
£26.00
From
birth to Sept following 16th birthday
£26.75
From
Sept following 16th birthday
£30.00
Disabled
Child credit
£94.50
Maximum
Childcare tax credit (1 child)
£140.00
Maximum
Childcare tax credit (2 or more children)
Enhanced
Disability Credit:
(Payable
separately from the basic adult credit)
£16.00
Enhanced
Disability Credit (Higher rate)
£11.05
Enhanced
Disability Credit (Lower rate)
£41.05
Enhanced
Disability Credit (Child rate)
Applicable
amount (i.e. threshold)
£72.25
Single
people
£92.90
Couples/Lone
parents
55%
Taper
70%
Childcare
Taper
Disregards
100%
Maintenance,
Disability Living Allowance, Attendance Allowance
An
Enhanced Disability Credit was introduced in April 2001 to provide additional
help for severely disabled adults and families with disabled children, in
receipt of the higher rate care component of Disability Living Allowance.
The
adult Enhanced Disability Credit will be paid at two different rates and will be
paid in addition to the basic Adult Credit.
Higher
rate Adult Enhanced Disability Credit:
Payable
where either (or both) of a couple, or a customer who is a Lone Parent, is in
receipt of the higher rate care component of Disability Living Allowance.
Lower
rate Adult Enhanced Disability Credit:
Payable
where the Customer who is a single person, with no dependent children, is in
receipt of the higher rate care component of Disability Living Allowance.
The
Child Enhanced Disability Credit is payable instead of the Disabled Child
Credit.
Child
Enhanced Disability Credit:
Payable
for each child, within the household, who is in receipt of the higher rate care
component of Disability Living Allowance.
The
amount of Disabled Person's Tax Credit payable depends on the net earnings and
other income of the family.
If
the family's net income exceeds £92.90 per week (or £72.25 per week for a
single applicant with no children), 55 pence of every excess £1 is deducted
from the maximum Disabled Person's Tax Credit.
Net
income is earnings (gross pay less tax, National Insurance Contributions and
half of any occupational or personal contributions) and most other forms of
income.
It
has been recognised that assistance with childcare is an essential factor in
helping people meet the costs of starting work. A childcare tax credit will be
included if the customer qualifies for Disabled Person's Tax Credit and
if
the customer is a lone parent who works 16 hours or more a week; or
a
couple where both the customer and their partner are working 16 hours or more a
week; or
couples
where the partner is incapacitated (in receipt of a qualifying benefit for the
disability premium or has an invalid carriage/other vehicle provided by the DSS)
and
you
use eligible childcare;
your
child(ren) are in childcare up to but not including the first Tuesday in
September following their 15th birthday. The qualifying age is from birth up to,
but not including, the first Tuesday in the September following the child's 16th
birthday for those children who are in receipt of Disability Living Allowance,
are registered blind or have been taken off the blind register in the last 28
weeks.
Childcare
tax credit will be worth up to 70% of eligible childcare costs. The maximum
limit for eligible childcare costs will be £135 per week for 1 child and £200
per week for 2 or more children. This means that the maximum childcare tax
credit you can get is £94.50 for one child and £140 for 2 or more children.
Eligible
Childcare means childcare provided by registered childminders, nurseries and out
of hours clubs on school premises, run by the school or local authority; and
childcare schemes run on crown property. The range of eligible childcare
providers has now been extended to include "Approved Providers".
Approved
Providers are those which have applied to and met the quality standards of new
accredited organisations appointed for the purpose by the Department for
Education and Employment (DfEE). Each approved provider will be allocated a
unique reference number that must be quoted when a Disabled Person's Tax Credit
application is made.
If
a customer has savings of less than £3,000 but their income exceeds £72.25 for
a single person or £92.90 for a couple/lone parent, they will receive less than
the maximum amount of Disabled Person's Tax Credit, 55 pence will be taken off
for every £1 they earn over £72.25 or £92.90.
All
income from maintenance is ignored.
Customers
who receive Disabled Person's Tax Credit and give up Incapacity Benefit at the
short term (higher) or long term rate or Severe Disablement Allowance to start
work can re-claim their previous benefit if:
(1)
they have to leave their job within two years of the date they were last
entitled; and
(2)
they are incapable of work.
They
may not have to serve the 28 week qualifying period again.
If
a customer has a short period of sickness at any other time, they may receive
Statutory Sick Pay, Incapacity Benefit or Income Support as other employees do.
Other
information
If
a customer wishes to discuss their Disabled Person's Tax Credit application
contact:
Helpline:
0845
6055858
Textphone:
0845
6088844
or
for further information visit the Inland Revenue website at
www.inlandrevenue.gov.uk
If a customer does not understand or disagrees with a decision, they can ask for an explanation and/or for the decision to be looked at again. They also have the right of appeal.
To check your possible entitlement to DPTC use the Inland Revenue online calculator. To return to this page from the calculator use the "back" button.
Use this link to go to the calculator:
http://www.inlandrevenue.gov.uk/dptc/calc_dptc.htm