Tax Credits Act 2002 section 16

Other revised decisions

Section 16 gives HMRC the power to amend or terminate a tax credit award during the award period if they believe the award rate is incorrect or the claimant is not entitled, and allows HMRC to request information to support such decisions.

• HMRC can amend or terminate a tax credit award during the award period if they have reasonable grounds to believe the award rate is wrong or the claimant was never entitled or has ceased to be entitled.
• Where HMRC believe there may be a discrepancy in the award rate, or that entitlement may have ended or never existed, they can issue a formal notice requesting information.
• The notice can require the claimant (or both claimants in a joint award) to provide information or evidence that HMRC consider necessary to decide whether to amend or terminate the award.
• The notice can also require other prescribed persons to provide prescribed information or evidence, with a specified deadline for compliance.