Why tax credit payments can change

If you are claiming tax credits make sure that you keep an eye on changes that may affect the amount you receive.

Your payments can go up if:

  • your income goes down by more than £2,500
  • your benefits stop or go down
  • you start getting personal independence payment (PIP), Disability Living Allowance (DLA) or other disability benefits for yourself or a child
  • you have a child
  • your childcare costs go up

You should report these changes within 1 month to make sure you get everything you’re entitled to. Payments can’t usually be backdated any further than this.

Your payments can go down or stop if:

  • your income goes up by more than £2,500 – report this straight away to reduce the amount you’re overpaid
  • you haven’t renewed your claim
  • your award notice shows you’ve been overpaid
  • you stop getting PIP, DLA or other disability benefits for yourself or a child
  • your child is now 16, 18 or 19 and you haven’t told the Tax Credit Office they’re in approved education or training
  • your childcare costs go down
  • you or your partner start claiming Universal Credit
Latest Blog
06
Nov

Winter Fuel Payments for the 2025-26 winter period

The Winter Fuel Payment is a familiar part of the support many older people receive e...

Read More
04
Nov

Have you verified your ID at Companies House?

From 18 November 2025, all company directors and people with significant control (PSC...

Read More
04
Nov

Claiming 4 years Foreign Income and Gains relief

The remittance basis of taxation for non-UK domiciled individuals (non-doms) was repl...

Read More
04
Nov

Check if you can cash in a Child Trust Fund

HMRC has issued a press release urging 18-23 year olds who have yet to claim their Ch...

Read More