Tax credits

Your tax credit entitlement for your child stops as soon as s/he becomes looked after and accommodated.1Reg 3 r4.1 Case A CTC Regs Your CTC may reduce or, if you no longer have any dependent children at home with you, stops altogether. If you are working and getting working tax credit, this might also be affected, either because having a dependent child is the basis of your entitlement or because you are getting help with childcare costs for the child.

Tell HMRC immediately, preferably in writing, if your child is looked after and accommodated to avoid being overpaid. Contact the Tax Credit Office to do this (see Appendix 1). If you do not tell HMRC within one month of the change, it can impose a penalty of up to £300 on you.2s32 TCA 2002

 

1     Reg 3 r4.1 Case A CTC Regs »

2     s32 TCA 2002 »