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Tax credit awards get new calculation set-up

12 May 2014
Issue: 4451 / Categories: News , real-time information; RTI , Tax credits , Employees , Income Tax

HMRC now calculate tax credits awards through the real-time information (RTI) system.

The new set-up – effective from 6 April 2014 – means renewals notices will show the total gross pay for the year, which may be from more than one source.

Claimants should check that income details shown are correct and contact the Revenue as soon as possible if they think the information is wrong, the tax department said.

Some claimants may contact their employer or pension provider if they think the income is wrong. In which event, the employer or pension provider should:

HMRC now calculate tax credits awards through the real-time information (RTI) system.

The new set-up – effective from 6 April 2014 – means renewals notices will show the total gross pay for the year, which may be from more than one source.

Claimants should check that income details shown are correct and contact the Revenue as soon as possible if they think the information is wrong, the tax department said.

Some claimants may contact their employer or pension provider if they think the income is wrong. In which event, the employer or pension provider should:

  • Ask the employee or pensioner for details of the amount and date of the income information shown on the notice (taking into account that this may be a total from more than one source.
  • If practical, compare this with the year-to-date figure for that individual at that point.
  • If correct, explain this to the individual.
  • If the figure is incorrect or a comparison cannot be made, the individual should be advised to phone the number on the renewals notice with the correct income information.
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