Report changes that affect your tax credits

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 HM Revenue and Customs (HMRC).

Do this as soon as possible to make sure you get the right amount of tax credits. You’ll have to pay back the money if you’re overpaid.

If your tax credits stop, you cannot claim tax credits again.

This guide is also available in Welsh (Cymraeg).

Changes you must report

Tell HMRC straight away if your:

• living circumstances change, for example you start or stop a relationship, move in with a new partner, get married or form a civil partnership, permanently separate or divorce
• child or partner dies (you do not need to tell HMRC if you’ve already used the Tell Us Once service)
• child stops going to childcare for 4 weeks or more when they would normally go
• childcare costs stop, go down by £10 or more a week, or you start getting help with them
• child leaves home, for example moves out or goes into care
• child is taken into custody
• child over 16 leaves approved education or training, or a careers service
• childcare provider is no longer registered or approved
• working hours fall below 30 hours a week (combined if you’re in a couple with children)
• working hours fall below or go above the minimum required to qualify

You must also tell HMRC straight away if you:

• go abroad for 8 weeks or more
• leave the UK permanently or lose the right to reside in the UK
• start working for less than 16 hours while claiming childcare costs - except in certain situations
• have been on strike for more than 10 consecutive days

If you receive tax credits you’re not entitled to, you’ll need to repay the money. You may also have to pay a penalty.

Deadline for reporting

You must report these changes within 1 month. If you report changes as soon as they happen, you’re less likely to be paid the wrong amount.

You could be fined up to £300 if you do not report certain changes within 1 month, and up to £3,000 if you give wrong information.

If you estimated your income when you renewed your tax credits - for example because you’re self-employed - tell HMRC your actual income by 31 January.

Other changes you should report

Your tax credits are less likely to be affected, for example by building up an overpayment, if you tell HMRC as soon as you:

• have any change in income (report this immediately if it goes up or down by £2,500 or more)
• increase your working hours to 30 hours or more a week (combined if you’re in a couple with children)
• have a baby or take responsibility for another child
• start or stop claiming benefits for yourself or a family member, or those benefits change
• start or stop having a disability that puts you at a disadvantage in getting a job
• get certification that your child is blind or their certification ends
• start paying for registered or approved childcare
• stop getting help with childcare costs

You should report these changes within 1 month to make sure you get everything you’re entitled to. Payments cannot usually be backdated any further than this.

You do not need to tell HMRC if you or a family member are transferred from an existing disability benefit onto Adult Disability Payment or Child Disability Payment, unless the amount of money you get changes.

You should also tell HMRC if you change:

• bank details - you can report this up to 30 days before it happens
• address - wait until you’ve moved before telling HMRC
• childcare provider
• your gender

How to report

You can report most changes online.

Changes you cannot report online

You cannot use the online service to report changes:

• to the bank account you want to use
• to how often you want to be paid
• that have not yet happened (apart from changes to existing childcare costs up to one week in advance)

You can report these and other changes by phone or post.

Benefit payments to Post Office card accounts are ending. If your tax credits are paid to a Post Office card account, update your bank details before 5 April 2022. HMRC have sent you a letter with details of how to do this. If you do not, your payments will stop.

Before you start

Make sure you have as much information as possible about the change in circumstances. For example, if you’ve changed jobs you’ll need your employment dates and PAYE reference number for both jobs.

If you’re signing in to the service for the first time, you’ll need:

• a Government Gateway user ID and password - if you do not have a user ID, you can create one when you use the service
• a permanent National Insurance number

You also need to prove your identity. You can use any 2 of the following:

• your tax credit claim details
• your P60
• one of your 3 most recent payslips
• your UK passport details
• information held on your credit file (such as loans, credit cards, or mortgages)
• details from your Self Assessment tax return (in the last 3 years)
• your Northern Ireland driving licence

Signing in will also activate your personal tax account - you can use this to check and manage your HMRC records.

Why your tax credits change

Your payments will stop if:

• you or your partner make a claim for Universal Credit (even if your claim is not approved)
• you claimed as a single person and you start living with a partner
• you claimed as a couple and you split from your partner

Your payments can go down or stop if:

• your income goes up by more than £2,500 - report this straight away to reduce the amount you’re overpaid
• you have not renewed your claim
• your award notice shows you’ve been overpaid
• you stop being eligible for the disability element of your tax credit claim
• your child is now 16, 18 or 19 and you have not told HMRC they’re in approved education or training
• your childcare costs go down

Your payments can go up if:

• your income goes down by more than £2,500
• your benefits stop or go down
• you start being eligible for the disability element of tax credits
• you have a child
• your childcare costs go up