CCM11040 - End of Year Issues: End of year process Section 17 Renewal Notice

From the April following the year for which they made the tax credit claim, all claimants who received an award will be sent a notice under S17. This includes cases where there was entitlement but the amount payable was £0.00 and cases where the award was terminated during the year. These notices will be issued over a number of weeks, so not all claimants will receive their S17 renewal notice at the same time.

If they have been awarded CTC at the flat rate, the notice will explain that they do not need to respond unless there has been a change in their circumstances or income. For example where a single parent has become a member of a couple or if their income has increased or decreased outside of the amounts shown on the notice. . In all other cases, the notice will ask them to confirm their circumstances for the year (or report their correct circumstances if different) and provide their actual figure of income for the year. Claimants must respond to the notice by the first specified date, see CCM11045. If a response is required, but has not been sent by the first specified date provisional payments of tax credits for the current year will cease.

If they are unable to state their actual income by that date (for example, because they have not yet completed their SA return), they must provide a reasonable estimate of their actual income for the year. Note that any claimant (not just those who are also SA taxpayers) may report an estimated figure at the first specified date, though it is likely that claimants within SA will form the bulk of those who estimate their income at this point. If the claimant(s) has used an estimated figure they will have to make this clear in their response, by ticking the “E” box on the form. A decision will be issued based on this figure. The claimant then has to provide their actual income by the second specified date, see CCM11060.

If the claimant(s) responds before the specified date (either the first or the second), they can revise their statement, as long as they do so before the relevant specified date.