Covid-19: tax credits unaffected

HMRC has confirmed that anyone unable to work their normal hours because of coronavirus will continue to receive tax credits as usual

Those working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payments affected if they are still employed or self employed.

Individuals do not need to contact HMRC about this change. HMRC says it will treat people as working their normal hours until the government’s job retention scheme and self employment income support scheme close, even if they are not using either scheme.

HMRC says it will use the information it holds about the number of hours claimants normally work.

People can still report any other changes in income, childcare and hours in the normal way. However, they must tell HMRC if they or their partner lose their job, are made redundant or cease trading.

As well as continuing to claim working tax credit as though they are working normal hours, claimants are encouraged to check to see if additional or alternative support is available based on their personal and financial circumstances.

Coronavirus support information

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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