Published On: Thu, Sep 30th, 2021

HMRC warns Working Tax Credit rules are changing – claimants may have payments reduced | Personal Finance | Finance

When will the rules be changing?

If WTC claimant’s hours temporarily fell because of coronavirus, they were treated as if they were working their normal hours during the pandemic.

Claimants do not need to tell HMRC if they re-establish their normal working hours before November 25, 2021, but from then, they must do so within the usual one-month window if they are not back to working their normal hours shown in their WTC claim.

Myrtle Lloyd, HMRC’s Director General for Customer Services, commented: “We introduced this measure last year to help support working families. It is vital that Working Tax Credit claimants who have benefitted from it update HMRC with their working hours if they have reduced, and they won’t return to their normal level before November 25.

“Anyone who is no longer eligible for Working Tax Credit due to a change in their circumstances may be able to apply for other UK Government support, including Universal Credit.”

HMRC said customers should continue to tell HMRC about any permanent changes to their circumstances within one month – for example if they are made redundant, lose their job or their hours change permanently during this time. This will ensure “only those who are entitled to tax credits receive them”, otherwise those ineligible or due a lower rate of payment will have to pay them back later.

READ MORE: Taxpayers to be ‘clobbered with large fines from HMRC’ – get ready

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