New tax credits factsheets
HMRC have published two factsheets relating to the Child Tax Credit and Working Tax Credit.
The first factsheet entitled ‘Tax credits formal request for information’ is relevant to recipients of tax credits who have not provided HMRC with the necessary information to supporta tax credits claim. Failure to provide information to HMRC can result in a penalty of up to £300 being imposed by the Tribunal. In addition, HMRC can also charge a penalty of up to £60 per day until the requested information is provided.
The second factsheet entitled ‘Tax credits – suspension of payments’ becomes relevant when a recipient of tax credits has not provided HMRC with the necessary information to support a claim to tax credits. Where no information is forthcoming payments may be suspended and ultimately tax credits may be stopped or reduced and, in certain cases, payments already made by HMRC may have to be returned.
HMRC ask that they be informed if there is a good reason why an information request has not been answered in either scenario outlined above. HMRC provide a number of examples but confirm that not having time to respond is not a valid reason.