E2.250 Tax credits—administration

Personal and employment tax

E2.250 Tax credits—administration

Tax credits—Administration and procedure

E2.250 Tax credits—administration

Tax credits are administered and paid by HMRC1. However from 1 April 2015 the Department of Work and Pensions can collect tax credit debt concurrently with HMRC, using methods including deduction from benefit and direct earnings attachment2. This is because of the replacement of tax credits by Universal Credit (see Division E2.1), which will remove HMRC's ability to recover tax credit debts by current methods, such as by adjustment to on-going tax credit awards.

When a claim is made HMRC must decide whether to make an award of the tax credit and, if so, the amount of the tax credit3. HMRC can decide to award a tax credit at a nil rate4.

HMRC can change or terminate a tax credit award if at any time during the period of award there is reasonable grounds for believing

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