Tax Credits Act 2002 section 6

Notifications of changes of circumstances

Section 6 establishes the framework for how and when claimants must report changes in their circumstances that affect their tax credit entitlement, whether those changes would increase or decrease their award.

• Regulations may require that changes which could increase the maximum tax credit rate only take effect if the claimant notifies HMRC — meaning beneficial changes are not applied automatically.
• The rules can adjust the effective date of a notified change, allow notifications to cover future periods, and make award amendments conditional on entitlement requirements being met at a specified time.
• Where a change of circumstances could reduce or end entitlement to a tax credit, regulations may impose a duty on the claimant to notify HMRC of that change.
• Regulations may specify how and when notifications must be given, who should give them, and allow one person to act on behalf of another in providing the notification.