Changes in circumstances for tax credits

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note looks at the how and when changes in circumstances are reported and the impact on tax credit awards.

Migration of tax credits to Universal Credit

New claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported or when a migration notice letter is received. This is expected to be completed during 2024. There is information about migration notice letters on theGOV.UK website.

See the Universal credit guidance note.

The circumstances of the household

The payment of tax credits is based not just on the income of the household but also the circumstances of those people included in a tax credit award notice. This includes the children or qualifying young persons as well as the claimants.

Therefore, when advising a client regarding tax credits, it is important to have a thorough understanding of the

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