Back dating tax credits
However if your current year income falls by more than £2,500 your award is instead based on your income in the current tax year, plus £2,500.You can report an estimate of your lower income straight-away, which may lead to an increase in your tax credit payments.If your child is awarded DLA or has an existing award increased to the high rate for personal care, this may lead to extra tax credits.
If you’re responsible for any children under 16, you could get Child Tax Credit.
You should take similar steps if you or your partner have health problems and get DLA or Personal Independence Payment in your own right.
Tax credits awards are usually based on previous year’s income.
If your business changes or ceases, you should cancel your registration.
As well as renewing your tax credit award annually you may also need to tell HM Revenue & Customs about changes during the year.