HMRC urges Working Tax Credit customers to check if they need to update their working hours if they have been reduced due to Coronavirus.
During the pandemic, working tax credit customers did not need to inform HMRC about temporary reductions to their working hours. For example they had been furloughed.
If a Working Tax Credit customer’s hours temporarily fell because of coronavirus, they have been treated as if they were working their normal hours.
Customers do not need to tell HMRC if they re-establish their normal working hours before 25 November 2021, but from then, they must do within the usual one-month window if they are not back to working their normal hours shown in their Working Tax Credit claim.
Customers should continue to tell HMRC about any permanent changes to their circumstances within one month – for example if they are made redundant, lose their job or their hours change permanently during this time.
This will ensure only those who are entitled to tax credits receive them, otherwise those ineligible or due a lower rate of payment will have to pay them back later.
Any changes can be easily reported online on GOV.UK, where customers can also check their current Working Tax Credit claim details.
If customers receive tax credits they are not entitled to as a result of a change they will need to repay this money and may also have to pay a penalty if they do not let HMRC know within one month.
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