Changes that affect your tax credits

1. Overview

Your tax credits could go up, down or stop if there are changes in your family or work life. You must report any changes to your circumstances to the Tax Credit Office.

You can do this either:

You could be fined up to £300 if you don’t report certain changes within 30 days and up to £3,000 if you give wrong information carelessly or on purpose.

Make sure you have as much information as possible about the change, for example if you’ve changed jobs you need start and end dates, names of employers and PAYE reference numbers. You need the old details as well as the new details.

Why your tax credits change

Your payments can go up because:

  • your income goes down by more than £2,500
  • your benefits stop or go down
  • you have a child
  • your childcare costs go up

Your payments can go down or stop because: