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HMRC internal manual

Tax Credits Technical Manual

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HM Revenue & Customs
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Payments of Tax Credits: Amounts of payments

Payment to be made according to the most recent decision under the Tax Credits Act

Tax Credits Act 2002 s14(1), s15(1), s16(1)

Tax Credits (Payment by the Commissioners) Regulations 2002, Reg 12

The rate of the tax credits award to be paid is determined initially in response to a claim by a decision under s14(1) Tax Credits Act but that initial rate may be varied during the period of the award by a further decision under s15(1) or s16(1) Tax Credits Act. The Commissioners for HM Revenue & Customs must make payments according to the most recent of those decisions, as follows.

No payment where the total award during the award period is under £26

Tax Credits Act section 13(3)(b)

Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002, Reg 9

If the total amount of a tax credits award during the award period is less than £26.00, there is no rate of tax credits and so no payment of tax credit to the claimant(s).

Single lump sum payment of small awards of tax credit

Tax Credits (Payment by the Commissioners) Regulations 2002, Reg 10

Where the total tax credits payable under an award amounts to a rate of less than £2 per week, the Commissioners for HM Revenue & Customs may pay the whole award by means of a single, lump sum payment. The Commissioners may make this single, lump sum payment by whatever method of payment and at such time as appears to them to be appropriate.

In all other cases

Tax Credits (Payment by the Commissioners) Regulations 2002, Reg 12

The Commissioners for HM Revenue & Customs must pay tax credits, so far as possible, to ensure that the claimant(s) receive regular payments of similar amounts throughout the period of the award.