A better deal for tax credit claimants who delay reporting changes

The Low Incomes Tax Reform Group (LITRG) gives a voice to those who cannot afford to pay for tax advice, aiming to persuade politicians and the Revenue to make the tax system easier and fairer.

As a result of their and other’s lobbying, changes took place in the tax credit system in January this year, which affect those tax credit recipients who either start to live together, or become single, but who do not immediately report their change in circumstances.

Until 18 January, HMRC would seek to reclaim all of any overpayment arising on the old claim, but would not allow any credit for what the claimant would have received if a new claim had been made promptly. Now the overpayment can be reduced by the amount they would have been entitled to if they had made their new claim on time.

Don’t delay if you have not yet reported any changes in your circumstances, you might be entitled to make a new claim.

Full details on how to claim and information about your ‘notional entitlement’ can be found in LITRG’s news section.