I am currently paying tax credits to my employee(s). What should I do from April, as it is a new tax year?
Continue to pay tax credits as instructed on your current Start Notice TC700 or Amendment Notice TC701 or Restart Notice TC704. If there is a change to the amount that we want you to pay you will be sent an Amendment Notice TC701or you will be contacted directly by the Tax Credit Office.
My employee has reported that their tax credits payments have changed. I have not received an Amendment Notice TC701 that tells me to change the payments that I am currently making to them. What should I do?
Continue to pay tax credits as instructed on your current Start/Amendment /Restart notice. If there is a change to the amount that we want you to pay, you will be sent a further notice or the Tax Credit Office (TCO) will contact you. In the majority of the cases, if your employee is owed any extra monies, it will be paid direct to them. Please ask your employee to contact the TCO directly on 0845 300 3900 if they have any further queries.
Will I receive a new Start Notice TC700 for my employee, whom I am currently paying, because it is a new tax year?
No, if you are currently paying WTC to your employee, you will not get a new Start notice TC700. You must continue to pay as instructed on your current Start, Amendment or Restart notice. If we want you to change the amount you currently pay we will send a further Amendment Notice TC701 or the Tax Credit Office will contact you direct. . However, if a new or existing employee claims for the first time, then you may receive a new Start Notice TC700 for that employee as per normal processing.
As we review your employees’ circumstances following the end of the tax year, you may well receive more Amendment and Stop Notices than usual. Please ensure that you action these in the correct order according to the issue number.
There may be limited occasions where we have asked you to stop paying tax credits in your employee’s wages in year and due to a relevant change in your employee’s circumstances, we send you a restart notice TC704 instructing you to recommence paying in that person’s wage packet.
I am receiving more Amendment and Stop Notices for my employee(s) than I would normally receive. Is this right?
Yes. It is possible that this could happen when your employee(s)
circumstances are reviewed at the end of the tax year. Where
you are receiving an increased number of Amendment or Stop
Notices, please ensure that these are actioned in the correct
order according to the issue number.
If you receive 3 or more Amendment notices which are effective
within the same pay period you are not obliged to action
them. If you cannot action them, contact the Employer helpline
on 0845 7143143.
If I continue to pay my employees tax credits and as a result of your end of tax year review they are not entitled or the payments have reduced, what happens to the tax credits that I have already paid them?
You must continue to pay tax credits until we advise you differently. Where it is identified from our end of year review that your employees have been overpaid we will pursue this with them directly. You will NOT be asked to recover any overpayment from your employees’ pay, provided you have paid tax credit in line with our instructions.
I have received 2 or more Amendment Notices for the same employee with the same issue date, same effective date but different daily rates. Which Notice should I use?
If you receive two or more Amendment Notices for the same employee with the same issue date and same effective date you must pay tax credits in relation to the latest Amendment Notice, i.e.,. 0001 Notice instructs to pay £2 and 0002 Notice instructs to pay £4 and 0003 Notice instructs you to pay £6, you must pay from the latest notice (0003) and keep the other two for your records.
