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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Renewals - Annual Declaration (capture): Annual Declaration - reply required and automatic renewal

Information

Customers who qualify for automatic renewal will only be issued with the Annual Review form TC603(R). Automatic renewal applies to customers who

  • only get the Family element of Child Tax Credit
  • claimed Tax Credits, but did not get them because their income was too high
  • were in receipt of Income support, income based Job Seeker’s Allowance, income based Employment and Support Allowance or Pension Credit for the whole of the last tax year.

Customers who do not qualify for an automatic renewal will be issued with the Annual Review form TC603(R) and the Annual Declaration form TC603D or TC603D2. This is known as reply required. Reply required renewals are sent to customers who are not selected for automatic renewal.

A reply is required from customers who made a claim in PY and have not provided their actual income for PY-1, even if they meet the criteria for automatic renewal. These customers will be issued with the Annual Review form TC603(R) and the Annual Declaration form TC603D2. The TC603D2 will ask them to confirm their actual income for PY-1 and their income for PY.

The reply to the form TC603D or TC603D2 is also known as the S17 Declaration and is required by the 1st Specified Date (1SD). If a reply is not received by 1SD, the computer will automatically terminate the Current Year (CY) and finalise PY using the information already held.