164-020 Adjustments to claims during the period of award
Awards of WTC and CTC will run for the remainder of the tax year unless there is a change in circumstances or income. The system provides for adjustments to be made during the year. Tax credit awards can be affected by:
•changes in the adults heading a household;
•changes in the circumstances giving entitlement to tax credits or the various elements of those tax credits; or
•changes in income.
Changes in circumstances
There are a number of changes of circumstance of which it is compulsory to inform HMRC on pain of incurring a penalty of £300: