Tax Credits Act 2002 section 14

Initial decisions

Section 14 sets out what HMRC must decide when a tax credit claim is received, and the powers they have to request information before making that decision.

• When a tax credit claim is made, HMRC must decide whether to make an award and, if so, the rate of the award.
• Before making their decision, HMRC can require the claimant (or both claimants in a joint claim) to provide information or evidence by a specified date.
• HMRC can also require other prescribed persons to provide prescribed information or evidence needed for the decision, again by a specified date.
• HMRC have the power to award a tax credit at a nil rate, meaning a claim can be formally accepted but result in no payment.