In this section:
- How changes at home and work affect your tax credits
- Tax credits: how and when to tell us about changes
- Family changes - how they can affect your tax credits
- Changes at work - how they can affect your tax credits
- Changes in income and tax credits
- Changes to childcare arrangements and tax credits
- You haven't reported a change - what happens to your tax credits?
Tax credits: how and when to tell us about changes
It's very important to tell us straight away about any changes in circumstance that could affect your tax credits. If you don't, you might get too much money and may have to pay it back, or you might not get the money that's due to you.
Changes you must tell us about within one month
You must tell us about the following changes within one month as they may mean your tax credit payments go down. If you don't you may have to pay a penalty of up to £300. The reduction in your payments will be backdated to the date the change happened:
You must tell us if you first claimed tax credits:
- As an individual - but now you're married or in a civil partnership. Or you are living with someone as if you are.
- As part of a couple - but you've separated permanently or your partner has died.
You'll also need to tell us if you or your partner:
- leave the UK for good
- go abroad for a short stay that lasts for more than eight weeks - or for more than 12 weeks if you or a family member is being treated for an illness, or if someone in your family has died
- lose your right to reside in the UK
Tax credits when your partner leaves or a new partner moves in
Can you claim tax credits if you live outside the UK?
Going abroad temporarily and claiming tax credits
New arrivals to the UK and tax credits
You work less hours
You must tell us if you stop working. It doesn't matter if you're self-employed or you work for someone else.
Tell us also if you're:
- working at least 16 hours a week and your hours drop to less than 16
- working at least 30 hours a week and your hours drop to less than 30 - if you're a couple and you've got children, both of your weekly working hours added together count towards the 30
- on strike - and it's gone on for more than ten working days in a row
Changes to your usual working hours and tax credits
Changes to the children you're responsible for
You must tell us if one of your children leaves home to live with someone else. This includes a child who's:
- taken into care - or placed with a foster family
- has been sentenced to four months or more in custody or detention
You'll also have to let us know if a child or young person:
- leaves full-time education or approved training up to 31 August after their 16th birthday
- starts training that's provided as part of their job
- gets a paid job and they're usually paid to work for 24 hours or more a week
- starts to claim Income Support, Incapacity Benefit, Income-based Jobseeker's Allowance or tax credits in their own right
Which children can you claim tax credits for?
Your childcare costs go down
If you've claimed childcare costs you must tell us if you stop paying for childcare.
You must also let us know if:
- your childcare costs go down by £10 a week or more and the change lasts for at least four weeks in a row
- the person who provides your childcare stops being registered or approved
Changes to childcare arrangements and tax credits
Other changes to tell us about
It's also a good idea to tell us about changes that may mean your tax credit payments go up. Although you don't need to do it within one month - it's best to do it straight away as your increase in payments can only be backdated for up to three months.
Changes in the number of children you're responsible for
Let us know if the number of children you're responsible for changes. For example, if:
- you have a baby
- a child or young person joins or leaves your family, perhaps because you foster or adopt
New baby - what tax credits are you entitled to?
Changes in circumstances of the child or young person you're responsible for
Tell us if a child or young person you're responsible for:
- Stays in full-time education - or starts an approved training course - after they reach 16. If you don't tell us, their tax credits will stop on 31 August after their 16th birthday.
- Stops full time education but registers with a careers service - like Connexions.
Your child reaches 16 - are you still entitled to tax credits?
You start paying for childcare - or your childcare costs go up
Let us know if:
- You start paying a registered or approved childcare provider to look after your child. You can get some help with the cost of this through Working Tax Credit.
- You're already getting help with your childcare costs through Working Tax Credit - and your costs go up. Tell us if they go up by £10 a week or more on average - for at least four weeks in a row.
Help with childcare costs - do you qualify?
Changes in your employment
Tell us if you change your job. If you're getting Working Tax Credit it'll carry on as long as the gap between finishing one job and starting the next one is six days or less and if you qualify for tax credits in your new job.
Temporary gaps in work when claiming tax credits
Changes in your income
It's important to tell us straight away if your income goes up or down. The amount of tax credits you get depends on how much income you have coming in.
If your income for the current tax year is expected to be less than last year, you may be entitled to extra tax credits.
If your income for the current tax year is expected to be more than £25,000 higher than income for the last year, you may get less tax credits.
If you expect your income for the current year to be no more than £25,000 higher than your income for the last year, it will make no difference to the amount of tax credits you will receive for the current year. However it's still a good idea to let us know about the change as the increased income will be taken into account:
- in the following year
- for the payments made to you after April, but before you've renewed your claim
If you don't tell us until you renew your tax credits after the end of the year, we may ask you to pay back any money we've overpaid you.
Changes in income and tax credits
A member of your family is taken into custody
Let us know straight away if you or your partner receives a custodial sentence.
Tax credits if you or a member of the family goes into custody
Change of address and bank details
Get in touch with us too if you:
- move home - let us know your new address
- change your phone number
- get a different bank or building society account
What happens if you don't report a change?
It's very important to tell us about any changes straight away. If you don't tell us, you might:
- get too much money and may have to pay it back
- not get the money that's due to you
If we've paid you too much, we'll either:
- reduce your payments if you're still getting tax credits
- ask you to pay us the full amount if you're not
You may also have to pay a penalty of up to £300.
You haven't reported a change - what happens to your tax credits?
Contact us
You can tell us about any change in circumstance by contacting our Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909 (open from 8.00 am to 8.00 pm, seven days a week except Christmas Day, Boxing Day, and New Year's Day). If you're abroad you can also contact us on Tel + 44 02890 538 192.
More useful links
How changes at home and work affect your tax credits
