{"id":16603,"date":"2023-08-05T08:37:45","date_gmt":"2023-08-05T08:37:45","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=16603"},"modified":"2023-09-07T11:39:36","modified_gmt":"2023-09-07T11:39:36","slug":"changes-affecting-tax-credits","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/employment\/benefits\/tax-credits\/changes-affecting-tax-credits\/","title":{"rendered":"Change Bank Details for Tax Credits | Reporting Changes Online"},"content":{"rendered":"
You must also report any personal and circumstantial changes as soon as possible, such as changing bank details or if you have a change of address.<\/p>\n
You can make some changes online yourself. You can also phone or write to HMRC for help with tax credits. Either way, it is best to prepare as much information as possible before you give notification of the changes.<\/p>\n
You may be wondering<\/strong>:<\/p>\n So, why do you need to report a tax credits change of circumstances to the Tax Credit Office and how long does it take to make the changes?<\/p>\n<\/p><\/div>\n<\/div>\n First of all, it keeps their records current and you avoid receiving a benefit overpayment<\/a>. This happens most often if you fail to report an increase in your income soon enough.<\/p>\n Important<\/strong>: A help guide explaining how to report changes that affect your tax credits is also available in Welsh language ‘Rhoi gwybod am newidiadau sy\u2019n effeithio ar eich credydau treth<\/a>‘ (Cymraeg).<\/p>\n<\/div>\n <\/p>\n <\/p>\n You would need to notify HM Revenue and Customs (HMRC) ‘without delay’ about certain changes that affect tax credits, such as if your.<\/p>\n Note<\/strong>: You should make a new claim for tax credits<\/a> if you start or end a relationship (or your partner dies).<\/p>\n You must also inform the Tax Credits Office (HMRC) straight away if you:<\/p>\n <\/p>\n If a fall in your normal working hours is because of coronavirus (COVID-19), there is no need to report the change (e.g. you are on furlough).<\/p>\n HM Revenue and Customs (HMRC) will treat this situation as though you are working your usual hours until the Coronavirus Job Retention Scheme (CJRS<\/a>) ends.<\/p>\n But, you would need to tell HMRC if you:<\/p>\n <\/p>\n <\/p>\n Important<\/strong>: Receiving money you are not entitled to is likely to result in a tax credits overpayment<\/a>. In this case, you would need to repay your tax credits<\/a> and you may also receive a penalty on top.<\/p>\n<\/div>\n <\/p>\n <\/p>\n You would need to report most of the changes that affect your tax credits within one (1) month of when they happened. Doing so means you will reduce the amount you get overpaid.<\/p>\n You may have estimated your income at the time you renewed your tax credits (e.g. as a self-employed worker). If so, you should inform your actual income to HM Revenue and Customs (HMRC) by the 31st of January deadline.<\/p>\n Note<\/strong>: Failing to report a change within the one month deadline can result in a fine up to \u00a3300. Moreover, the penalty can increase to \u00a33,000 for ‘intentionally’ giving false information.<\/p>\n <\/p>\n <\/p>\n Not all tax credit change of circumstances have a one month deadline for reporting. But, failing to notify HMRC about some circumstantial changes could result in an overpayment and affect other benefits, such as if:<\/p>\n As a rule, tax credit payments cannot be backdated for more than one month. So, you should report these kinds of changes as soon as they happen (not the end of the year) to avoid losing money you are entitled to.<\/p>\n HMRC will backdate any increase in tax credits for a period of up to three (3) months for critical workers<\/a> who report a change in circumstances.<\/p>\n But, once the Coronavirus Job Retention Scheme (CJRS) closes, the process of backdating returns to one (1) month.<\/p>\n <\/p>\n <\/p>\n The easiest way to report a tax credits change<\/a> is online via the GOV.UK website. But, the online service does not allow you to report all types of changes, such as:<\/p>\n Important<\/strong>: You will be able to report these particular changes (and others) by telephone or by postal methods instead. See the ‘tax credits general enquiries<\/a>‘ section for further details.<\/p>\n<\/div>\n You will need to provide some basic information the first time you sign in to the online service, such as:<\/p>\n There are several ways to prove your identity using one of the following documents. You can use your:<\/p>\n Signing in activates your personal tax account so you will be able to use this service to check and manage your HMRC records as well.<\/p>\n You can also manage tax credits online<\/a> to report changes to your circumstances. You should include the old details with the new details (e.g. PAYE reference numbers, employment change dates, and the names of employers).<\/p>\n <\/p>\n <\/p>\n There are several reasons why your tax credits change. So for example, your payments may increase (go up) if:<\/p>\n But, your payments may decrease (go down) or stop altogether, if:<\/p>\n <\/p>\n <\/p>\n You should also tell HM Revenue and Customs (HMRC) if you change:<\/p>\n <\/p>\n
\nChanges You Must Report Straight Away<\/h2>\n
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What if the Hours You Work Fall Due to COVID-19?<\/h5>\n
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\nDeadline for Reporting Changes<\/h2>\n
Changing Estimated Income<\/h5>\n
\nList of Other Changes You Should Report<\/h2>\n
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Critical Workers and Reporting Changes<\/h5>\n
\nHow to Report a Changes in Circumstance<\/h2>\n
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Tax Credits Overpayment Advice<\/h5>\n
\nWhy Do Your Tax Credits Change?<\/h2>\n
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\nChange Bank Details for Tax Credits<\/h2>\n
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HMRC Tax Credits Change Bank Details or Address<\/h3>\n