A change in circumstances should be reported to the Tax Credit Office within one month. If you realise that you haven’t reported a change on time you should still tell them straightaway on 0845 300 3900. Don’t wait until you have to renew your tax credits claim.
If your change means your payments go down, for example your child leaves full-time education that qualified for tax credits, you may well be overpaid. Your drop in your payments will be backdated to the date of the change. You may have to pay a penalty of up to £300 as well.
If your change means your payments go up, you could lose out if the change meant you were entitled to more money – increases can usually only be backdated by up to three months from the time you report the change.
