TCTM06106 - Claims and Notification
End of Year - Final Notice
The Tax Credits Act s17
At the end of each tax year, HMRC issues notices to all tax credit claimants, who have been awarded for the whole or part of the tax year, and in the case of joint claims, to each claimant.
The notices replay the circumstances of each tax credit claim awarded to the claimant(s) for the previous tax year. If the circumstances are incorrect or have changed, including changes in income which will affect the amount of tax credit payable, the claimant(s) must respond to the notice so that the amount awarded can be checked and their entitlement for the year finalised.
Where the claimant is not told to respond to the notice, HMRC will accept that the circumstances were as quoted on the notice and the income between a specified income range, unless notified of a change.
In all other cases, although there may be no changes to report, the claimant(s) will be asked to respond and confirm the details are correct, as appropriate.
The manner in which a declaration or statement in response to a notice under Section 17 of the Act is to be made.
The Tax Credits (Claims and Notifications) Regulations 2002, Reg 34
A declaration or statement in response to a section 17 notice must be made
- in writing on a form approved by HMRC for that purpose;
- orally to an officer of HMRC; or
- in other such manner as HMRC may accept as sufficient in the circumstances of any particular case.
In the case of an oral response one of two joint claimants may act for both of them, if at the time of the response a joint claim could be made by both of them.
Renewal Claim
The circumstances in which a declaration can be treated as a claim for the tax year following that to which the notice relates.
The Tax Credits (Claims and Notifications) regulations 2002, Regs. 11,12
If a person (or persons in a joint claim) responds to the end of year notice under section 17 of the Act:-
providing that the declaration contains all the requested information (or such of that information as may be sufficient in the circumstances - TCTM06102), the declaration is treated as a claim made for the tax year following that to which the notice refers.
The date of any claim so treated as made depends on when the declaration is made.
In the first four scenarios set out below, the date of claim will be the 6 April of the year following that to which the notice relates. In any other case, the date of claim will be the date on which the declaration is received (TCTM06100), subject to the normal rules for backdating (TCTM06104).
In scenarios 3 and 4, “provisional payments” means payments of tax credit provided for by section 24(4) of the Tax Credit Act. Notification that provisional payments have ceased due to the claimant’s failure to return the end of year notice on or before 31 July typically takes the form of a Statement of Account.
Scenario 1
Where the declaration is made on or before 31 July following the end of the tax year to which the notice refers, the claim shall be treated as made on 6 April preceding that date.
Scenario 2
In some circumstances a declaration will be issued late, however the claimant still has 30 days from then on to return it. Where the declaration is made within the date specified on the notice in the tax year to which the claim relates, the claim shall be treated as being made on 6 April preceding that date (this could be after 31 July if the notice was issued late).
Scenario 3
Where the declaration is made within 30 days following the date that notification was given that provisional payments had ceased due to the claimant’s failure to make the declaration, the claim shall be treated as being made on 6 April next following the end of the tax year to which the claim relates.
Scenario 4
Where the declaration is made after 31 July and
- is outside 30 days of the date that notification was given that provisional payments had ceased due to the claimant’s failure to make the declaration;
- and is made before 31 Jan; and
- and in the opinion of HMRC, the claimant had good cause for not making the declaration by 31 July or within the 30 day period referred to above
- the claim shall be treated as being made on 6 April preceding the date on which the declaration is made.
Scenario 5
In any other case, the claim shall be treated as being made on the latest date on which the declaration is received by a relevant authority at an appropriate office, subject to the normal backdating rules.
Exceptions
The above does not apply:
- where there has been a previous single claim if the customer could no longer make a single claim, or
- where there has been a previous joint claim if the customers could no longer make a joint claim.
Where a person or persons are not required to respond to an end of year notice and they choose not to respond:
- they will be treated as if they have made a claim for the tax year following that to which the notice refers.
- the claim will have an effective date of 6 April.
Circumstances in which claims made by one member of a couple are to be treated as also made by the other member of the couple
The Tax Credit (Claims and Notification) Regulations 2002, Reg 13
A claim for tax credit made by one member of a couple is to be treated as also made by the other member of the couple in such manner and in such circumstances as the Board may decide. Where one member of a couple responds to a notice under section 17 of the Act given to both members of the couple they are both treated as having made a claim for tax credit.
Issue and re-issue of notices
The Tax Credit (Claims and Notifications) Regulations 2002 Reg 32 & 33
A person has not less than 30 days after the date of notice to:
Initial decisions: Tax Credit Act 2002 Section 14(2)
- provide information or evidence that is required, from the claimant and from third parties in order to reach a decision.
Revised decisions: Tax Credit Act 2002 Section 15(2)
- provide information or evidence that is required, to amend a tax credit award because of a change of circumstances which may increase the rate of tax credit.
Other revised decisions: Tax Credit Act 2002 Section 16(3)
- provide information or evidence that is required, to amend or terminate the award of tax credits which was awarded at a rate which differs from the rate that they are entitled to or to which they have ceased to be entitled to.
Dates to be specified in notices under section 17 of the Act
Tax Credit Act 2002 Section 17(2)(4)(8)
The Tax Credits (claims and Notifications) Regulations 2002, Reg 33
A notice under section 17 of the Act, must require the person or persons, by no later than 31 July following the end of the tax year to which the notice relates, or 30 days after the date on which the notice is given, to :-
- declare the relevant circumstances were as specified or state any respects in which they were not; or
- declare the amount of current year income or estimated current year income was the amount, or fell within the range specified; or
The notice must inform the person or persons that if they make a declaration in relation to estimated current year income (or the range within which the estimated current year income fell) or states their estimate of the current year income, they will be treated as having made a declaration in response to the notice that the amount of the actual current year income was as estimated, unless by 31 January following the end of the tax year to which the notice relates, or, if later, 30 days after the date on which the notice is given, they state the current year income.
Dates to be specified on a notice for additional information or further evidence before making a decision on entitlement under section 18 of the Act or a decision on a claim under section 14 of the Act
Tax Credits Act 2002 Sections 14(2) and 18(10)
Tax Credits (Claims and Notifications) Regulations 2002
Power to enquire: Tax Credit Act 2002 Section 19(2)
- provide information or evidence that is required, about entitlement to tax credits for a tax year or, the amount of tax credit they are entitled to for the tax year.
