Last updated: May 23, 2017test case
Sheikh v HMRC CTC/3228/2015 and Saleh v HMRC CTC/1938/2016
Saleh and Sheikh are appeals in the Upper Tribunal concerning the relationship between s16 and s18 of the Tax Credits Act 2002 and what the powers of the First-tier Tribunal (FtT) are where a s16 decision, which is the subject of an appeal to it, has subsequently been replaced by an end of year s18 decision on a tax credits award. HMRC can amend or terminate an initial award for tax credits under s16 if there is evidence that the amount awarded is incorrect or if there is no entitlement. A s16 decision must be made within the respective tax year. A s18 decision is the final decision on a tax credits award and is conclusive as to a person’s entitlement for the relevant tax year. In practice, HMRC do not make a s18 decision while a s16 decision is under appeal.