If the information that the Tax Credit Office holds is wrong, you may not be receiving the correct amount of tax credits. If you haven’t provided necessary information about changes in your circumstances your tax credits could be stopped or reduced. And, you may even have to pay a penalty.
When your circumstances change you have one month to update your information. So, here are eight things that you should always tell the Tax Credits Office in order to avoid issues with your payments.
1. Unemployment
You should always tell the Tax Credits Office if you are laid off from your job. This is because many of the credits are based on your income and working hours.
2. Your marital status changes
If you get married, enter into a civil partnership or become part of a household where you live together as husband and wife or as civil partners then this may affect your tax credits. Similarly, you should also tell the Tax Credits Office if you stop being part of a married couple or civil partnership.
3. Your childcare costs change or end
If your childcare costs reduce by £10 a week or more, or you stop paying for childcare altogether, then you should tell the Tax Credits Office.
4. You leave the UK for a period
Your tax credits may be affected if you leave the UK. If you or your partner leaves the UK for more than eight weeks then you should inform the Tax Credits Office.
5. You go on strike
If you have been on strike for more than ten days then you have to let the Tax Credits Office know.
6. A child you care for leaves home or dies
Your tax credits may change of a child or young person you are responsible for leaves the family to live somewhere else or dies.
7. Your working hours change
Tax credits are often based on your working hours. So, if your working hours change so that you work less than 16 or 30 hours a week you should update your information.
Remember that for couples with children it is your joint working hours that count towards the 30 hours.
8. A child you care for stops becoming eligible for tax credits
The final reason that you may have to update your tax credits information is if a child or young person you are responsible for stops qualifying for support.
For example, they could start paid work for over 24 hours a week or start to have their training provided under a contract of employment. In addition, they might have left full time non advanced education or approved training before the age of 20 or stop being registered with a careers service.
Finally, they may start to claim some state benefits themselves. If they begin to claim Jobseeker’s Allowance, Employment and Support Allowance, Income Support, Incapacity Benefit then you’ll have to let the Tax Credits Office know.
In addition, you should update your information if your child starts claiming Child or Working Tax Credit in their own right.
What happens of my income changes during the tax year? Should I tell the Tax Credits office?
Christina – Yes, you should get in touch as quickly as possible. If your income falls you may be eligible for more tax credits, whereas if it rises you could be building up an overpayment which you will have to pay back.
I have been in maternity leave for some of this year and they would only reduce my income by £100 a week to account for this if I use my p60 for next year will that be ok or will I end up being overpaid?
i am starting a new job next week,my old one was 30 hrs a week,it is unclear at the moment whether i will be working 25 or 30 hrs,does that matter?