TCTM05340 - Notifying a change to the information TCO hold
The Tax Credit Act 2002, section 6,14,15 & 21
Tax Credits (Claims and Notifications) Regulations 2002, Regulations 25,26 & 26A
Currently where
- A claim for tax credits is received and awarded, and
- The claimant later provides information (whether or not during the finalisation process but prior to the section 18 finalisation decision being made), and
- That information increases the maximum rate to which they are entitled; and
- There has been no official error relating to that information
Tax Credit Office (TCO) takes action under section 16 of the Tax Credit Act 2002, to correct the award. However, in these cases the new information is actually a report of a change in circumstances.
Accordingly, in any case where
- A claim for tax credits is received and awarded under section 14 of the Tax Credit Act 2002, and
- the claimant later provides information (whether or not during the finalisation process but prior to the section 18 (Tax Credit Act 2002) finalisation decision being made), and
- that information increases the maximum rate to which they are entitled; and
- there has been no official error relating to that information
The notification of the new information should be dealt with under section 15 (Tax Credit Act 2002). As a result, the usual backdating criteria will apply to the date from which that change is notified.
Examples
Example 1
Single claimant with three children completes a claim for tax credits in April 2007.
The claimant, in error, only includes two of their children on the claim form.
Tax Credits are awarded for 07/08 based on two children.
In August 07 the claimant realises their mistake and contacts TCO to inform them of the mistake.
The notification of the error is treated as a change to the circumstances TCO hold and the claim is amended under section 15 Tax Credit Act 2002.
The missing child is included in the claim form three months earlier, i.e. May 07
Example 2
Single claimant with three children completes a claim for tax credits in April 2007.
The operator, in error, only inputs two of the children onto the computer system.
Tax Credits are awarded for 07/08 based on two children.
In August 07 the claimant realises the mistake and contacts TCO to inform them of the mistake.
The notification of the error is treated as an official error and the claim is amended under section 21 Tax Credit Act 2002.
The missing child is included in the claim form from the date of claim i.e. April 07.
