Tax Credits - Changes from 6 April 2006

June 2006

Renewals Notice.

This year you will need to file your annual renewals notice by the 31 August 2006, not the 30 September 2006, as was previously the case.

Increase in the upper age limit from 19 to 20 years.

You will qualify if you are responsible for a young person who turned 19 on or after the 6 April 2006 and,

is in approved training or
full time education that started before their 19th birthday. (Full time education for tax credits purposes does not include a course leading to a first or post graduate degree, or other higher level diploma such as HND)

This increase in the age limit will continue to apply until the young persons 20th birthday, or when they leave training/education program, whichever is the sooner.

Direct Payment

The transition to direct payment of tax credits to your bank account should now be complete. If you are still being paid via your employer call the HMRC contact centre 0845 9009300.

Changes in circumstances

From April 2007 the time limit for mandatory reporting of changes in circumstances will be reduced from 3 months to 1 month. The three month back-dating rule will remain.