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HMRC internal manual

Tax Credits Technical Manual

HM Revenue & Customs
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Payments of Tax Credits: Postponement of payment

Tax Credits (Payment by the Commissioners) Regulations Reg 11(1) (2) (3) (4) (5) (6) (7)

In certain circumstances HMRC may postpone payment until they are satisfied payments can resume. These certain circumstances are clearly identified in reg 11 and the law does not provide any other circumstances for the postponement of payment. These are:

  • HMRC is awaiting a tribunal, Commissioner or higher court decision in relation either to the case in question or to another award where the decision in that other case is likely to impact in the case in question such that the case in question would need to be amended or terminated under s16(1) TCA. This is operative to the extent that HMRC is awaiting the decision, has received the decision but has applied for and is awaiting the statement of reasons for that decision, or has received both the decision and the statement of reasons and is considering whether to seek leave to appeal.
  • Where a notice in writing has been given by the Commissioners to a person to notify a bank account or other account which the Commissioners may make payment of tax credits to which the person is entitled and a period of eight weeks has elapsed since the request and no bank account or other account has been notified.
  • Pending confirmation of bank details where the bank details for the account to which tax credits are to be paid as were previously notified appear to HMRC to be incorrect.
  • Pending confirmation of the address of the person to whom payments are to be made where it appears to HMRC that the address as last notified to them was incorrect.
  • Where a notice under s16(3) TCA has been issued to the person, or either or both of the persons, to whom tax credits was awarded and the information or evidence requested has not been supplied by the date specified.

Postponement of payment ceases

Tax Credits (Payment by the Commissioners) Regulations Reg 11 (1) (2) (2A) & (7)

When there has been postponement of payment after a notice was given by the Commissioners for account details and four weeks has elapsed, the postponement shall cease at the earlier of the time when:

  • a bank account or other account is notified to the Commissioners, or
  • the entitlement to tax credits ceases in accordance with regulation 14 (see TCTM08103)