In this section:
Tax credit enquiries
Each year we check thousands of tax credit awards to make sure we're paying the right amount of tax credits.
What is a tax credit enquiry?
Tax credit enquiries are checks of all information you've given us for the tax year. A tax year starts on 6 April in one year and finishes on 5 April in the next. After the end of the tax year we'll ask you for details of your actual income and circumstances for the year just gone as part of the renewals process. We may then start an enquiry into your award or claim.
If we decide to check your award or claim, we'll write and explain what happens during the checking process. We'll also:
- ask for more information to help us understand your circumstances
- look at your award or claim in full
- tell you your rights
What you'll need to do if your claim is checked
We may ask you for copies of:
- bank and building society statements
- credit and charge card statements
- mortgage statements or rent books
- Council Tax bills
- Housing Benefit claims
- household bills
- payslips or other proof of your income
- information about your personal circumstances
We may also ask for information from people like your employer or childcare provider.
What happens if you don't respond?
If you don't give us the information by the date shown on the letter we can reduce or stop your payments. We may also charge you a penalty. So you need to:
- tell us if you can't send the information we've asked for
- explain why there's a delay in giving us the information
Let us know if you can't send the information maybe because you're ill or your documents have been destroyed or stolen.
What happens when you've sent us all the information?
We may cut or stop your payments if we find:
- your payments are too high
- we shouldn't be paying you any tax credits at all
We may ask you to repay any money we've overpaid. If we're paying you too much because you were careless or dishonest when you made your claim, you may also have to pay a penalty.
If we find you're not getting enough tax credits, we'll increase your payments.
How to avoid being paid too much or not enough tax credits
Asking someone to help you
If you'd like help and advice you can talk to:
- an organisation like Citizens Advice or Community Legal Advice
- a professional adviser
You can ask them to talk to us on your behalf. But we can't talk to anyone without your permission. If you do ask someone to act for you, please write and tell us:
- the name and address of the person
- the address and contact details of the organisation acting for you
You can write to us at:
Tax Credit Office
Preston
PR1 0SB
Visit the Citizens Advice website
Contact Community Legal Advice
Your rights during a tax credit enquiry
If we check your tax credit award you've got the right to:
- appeal against our decision
- appeal against the opening of the enquiry
- appeal against a penalty
- be treated fairly - and complain if you're not
Find out how to make a complaint
