HMRC warning: 10 days left until major Working Tax Credit changes – act now

HMRC provide advice on self-employed tax returns

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Taxpayers whose working patterns have changed over the past year have less than two weeks to inform HMRC about their new shifts to continue getting the tax credits. As a result of the COVID-19 pandemic, many workers were placed onto furlough or received reduced hours from their bosses resulting in changes to their working hours. However, with the Government’s furlough scheme now at an end, the majority of these employees have returned to work and must inform HMRC of their latest jobs status.

Specifically, workers will need to update the tax body if their working hours have been altered over the last fiscal year.

Anyone who is a recipient of Working Tax Credit must inform HMRC by November 25, 2021 in order to keep receiving their allowance.

Currently, the maximum a household can get from this tax credit is £3,240 but this amount is means-tested by the tax body.

This means that how much someone receives in financial support depends on their circumstances, which includes any income they receive from work.

An employee who had their hours reduced as a result of the pandemic would have been treated as if they were working their regular hours by HMRC.

However, as of next week, Working Tax Credit claimants will need to inform the tax body of any changes to their work shifts in order to continue receiving support.


The amount someone gets from this tax credit could potentially be increased or go down depending on how their working patterns have changed.

People who fail to inform HMRC by November 25 could face a £300 fine, which could potentially be raised by £60 a day if they refused to pay it.

Anyone who has had their work hours changed, been made redundant or lost their job must contact HMRC immediately.

Those who receive more money than they are entitled to through Working Tax Credit may have to pay that cash back to the tax man at a later date.

Myrtle Lloyd, the Director General for Customer Services at HMRC, outlined why the tax body introduced this change to Working Tax Credit while speaking about it earlier in the year.

Ms Lloyd explained: “We introduced this measure last year to help support working families.

“It is vital that Working Tax Credit claimants who have benefitted from it update HMRC with their working hours if they have reduced, and they won’t return to their normal level before November 25.

“Anyone who is no longer eligible for Working Tax Credit due to a change in their circumstances may be able to apply for other UK Government support, including Universal Credit.”

Claimants looking to update HMRC can reach out to the tax body either online, over the phone or through the post.

In order to complete this tax online, Working Tax Credit recipients must log onto their tax credits account which will have instructions on how to carry this out.

Alternatively, claimants can phone HMRC to update their job status by calling 0345 300 3900.

If a tax credit recipient opts to update HMRC by post, they can fill out the forms in their renewal pack and send them back to the Tax Credit Office, HM Revenue and Customs, BX9 1LR.

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