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Tax credits claimants are being reminded by HMRC that they must immediately and accurately report changes in their circumstances, whether they concern working hours, childcare costs, living arrangements or income.
The income increase disregard will fall from £10,000 to £5,000 in April. Although a change of less than £5,000 may not affect current year awards, provisional payments from 6 April the following year would not be based on up-to-date figures, which could cause an overpayment that will have to be repaid by the claimant.
Tax credits claimants are being reminded by HMRC that they must immediately and accurately report changes in their circumstances, whether they concern working hours, childcare costs, living arrangements or income.
The income increase disregard will fall from £10,000 to £5,000 in April. Although a change of less than £5,000 may not affect current year awards, provisional payments from 6 April the following year would not be based on up-to-date figures, which could cause an overpayment that will have to be repaid by the claimant.
HMRC may charge a penalty if a claimant fails to provide requested information, or if he or she is careless or dishonest in making a claim.
