The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
New claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported.
See the Universal credit guidance note.
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 that you 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 will then be migrated to the universal credit system unless they are entitled to severe disability premium.
The main types of change that could affect a tax credit award are:
changes in the number of adults in the household (for example if a couple breaks up or two people begin living together as a couple, or a claimant leaves the UK or dies)
changes in eligibility to the elements of tax credits (for example, the arrival of a new child or qualifying childcare)
changes in the number of hours a claimant works (for example, when he stops working at least 16 or 24 hours a week (as appropriate) or where he stops worki
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