Changes in circumstances for tax credits

Copyright © 2025 LexisNexis
Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Changes in circumstances for tax credits

Copyright © 2025 LexisNexis
Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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This guidance note looks at how and when changes in circumstances are reported and the impact on tax credit awards. Note that tax credits cease on 5 April 2025. New claims for tax credits are not possible and no more payments were made after 5 April 2025. Any existing claimants will be migrated to the universal credit system. See the Universal credit guidance note. See also the GOV.UK website.

The circumstances of the household

The payment of tax credits is based not just on the income of the household but also the circumstances of those people included in a tax credit award notice. This includes the children or qualifying young persons as well as the claimants.

Therefore, when advising a client regarding tax credits, it is important to have a thorough understanding of the circumstances which might affect a claim. For example, this could be whether there are any disabilities in the household, or childcare payments.

When changes occur, it is important that HMRC is notified within the required deadlines. The claimant is then migrated

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  • 22 Oct 2025 10:20

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