Tax Credits Act 2002 section 18

Decisions after final notice

Section 18 sets out the process by which HMRC must make a final decision on a claimant's entitlement to a tax credit for a tax year, after issuing a final notice under section 17.

• After issuing a final notice, HMRC must decide whether the claimant was entitled to the tax credit and, if so, the amount — but generally only after the claimant has responded with the required declarations or statements.
• If the claimant fails to respond by the deadline specified in the final notice, HMRC may proceed to make the decision without the response, using whatever information is available.
• Where circumstances have changed (for example, where the claimant has started or stopped a new claim or partnership), HMRC must make a further decision taking account of updated income statements, and may revise earlier decisions if new information is provided before the deadline.
• Subject to the enquiry, discovery, review and appeal provisions of the Act, HMRC's final decision is conclusive as to both the claimant's entitlement and the amount of tax credit for the year.

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