If you qualify for tax credits, HM Revenue & Customs (HMRC) will send you an award notice telling you how much you will get - based on the information you gave HMRC in your claim form. You need to check the award notice carefully and tell HMRC within one month if anything is wrong, missing or incomplete.
The award notice is in three parts:
It tells you:
You will get a checklist with your award notice that tells you what information you have to check and how to tell us about any changes.
You should keep the award notice in a safe place.
Your first award notice
HMRC send you an award notice following your claim for tax credits. The tax credit payments you get throughout the year are temporary, or 'provisional'. This means that they are paid to you throughout the year based on your current circumstances and your income from last year. Between April and June each year HMRC ask you to renew your claim, which helps them to check that the payments made to you are correct.
Amended award notice
You need to tell HMRC about any changes in your circumstance during the year so that you are not paid too much or too little money in tax credits. For example, you'll need to tell HMRC if you split up from your partner, or if you start working fewer hours. When you do this, or when there are any other changes, HMRC will send you an amended tax credits award notice. They aim to do this within 30 days of you telling them about the change. If you don't receive one within 30 days, let HMRC know as soon as possible.
Final award notice
After the end of the year you need to renew your tax credits claim. This helps HMRC to check that the payments they have made to you are correct based on your actual circumstances. Sometimes HMRC will have paid you too much or not enough. If this happens they will either make an adjustment to your payments, or if you have been paid too much but you're no longer getting tax credits, they will ask you to make a direct payment - a one off payment for the full amount.
When you have renewed your tax credits claim, HMRC will send you an award notice with a final decision for the year that ended on 5 April. Although the decision is final, you still need to check the award notice carefully and tell HMRC if anything is missing, wrong or incomplete.
You'll also be sent a separate award notice, telling you what your payments will be going forward.
In some cases you won't need to respond to your renewal pack because:
In this case your tax credits are automatically renewed, and your final decision is shown on the Annual Review notice that was in your renewal pack. You'll be sent no further award notices unless your circumstances change.
It is HMRC's responsibility to put the right information on your award notice based on information you give them.
It is important that you check your award notice when you get one. Use the checklist that came with it to tell HMRC if anything is wrong, missing or incomplete, or if there's anything you don't understand. You can do this by calling the Tax Credit Helpline. You should do this within one month of getting it.
If you wait before telling HMRC if anything is wrong, it may mean you are not getting all the money you are entitled to, or you could be building up an overpayment which you may have to pay back.
Contact the Tax Credit Helpline if you need help with your award notice, for example:
It is also important to check the amount of money going into your bank account. Part 3 of your award notice - Payment dates and amounts - will show your first payment, plus the amount to be paid every week or every four weeks. If a payment doesn't match the amount on your award notice call the Tax Credit Helpline as soon as possible.
You can contact the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909 (open from 8.00 am to 8.00 pm, seven days a week except Christmas Day, Boxing Day, and New Year's Day).