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HMRC internal manual

Tax Credits Manual

Changes - miscellaneous (A-F): Change results in no eligibility (Info)

Where a change of circumstances results in the customer no longer being eligible for an award of tax credits

  • the award will be finalised
  • a Finalised Award Notice will automatically be issued to the customer.

If WTC entitlement ends due to employment changes, for example total hours worked have dropped below 16 hours or employment ends, the customer may be entitled to Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance. They will continue to receive Working Tax Credit (WTC) for four weeks starting from the day after entitlement ended. The customer will receive a letter explaining this.

Note: Where a customer has claimed Universal Credit (UC) during the four week period, their entitlement to WTC will cease on the day before the UC claim start date.

Note: Customers serving a prison sentence are not treated as being in remunerative work and so this will not apply to them.