Changes to tax credit easements

The Low Incomes Tax Reform Group (LITRG) is urging working tax credit claimants to check their position after the ending of coronavirus tax credit easements for some people.

In response to the coronavirus pandemic HMRC introduced special rules for working tax credit claimants who could not work their normal hours because of the pandemic – essentially allowing their tax credits to continue uninterrupted by treating them as working the same hours as they were before the pandemic.

These rules were in place until 30 September 2021. From 1 October 2021 a complex series of rules replaced them for claimants who were still not able to resume their usual working hours (or the level needed to qualify for working tax credit) as a result of the pandemic.

For people in this situation the new rules mean that the point at which a claimant needs to notify HMRC...