I understand, from various Inland Revenue literature that, where an in-year adjustment has been made to Tax Credits up to 5th April, the payments will increase to the 'normal' figure after 6th April- the weekly award, at 2003/4 rates, that represents the claimant's latest known circumstances. No notification letters are being sent out as it is not a new award.

The HB circular A20/2004 says that, in these circumstances, HB 'take no action unless the customer notifies the change. If the customer notifies the change, take the normal change of circs action'.

I think that this is saying that the customer does not have to report the increase in income and that, if they do not, there will be no subsequent HB overpayment. Am I interpreting this correctly? I am concerned about advising clients not to report change of income and I would hate there to be repercussions in the future.

Thanks

Does seem to read that way to me!
I wonder how, without a notification, your customer would report this change and how La's are supposed to calculate a weekly income from your customer's report!
I cannot begin to predict how an La will react when it is found that your customer has had, probably for quite a while, an income change which was never notified to the La. I can guess what a Fraud Investigator would think.
This affects a lot of people, some have had nothing for the last few weeks of last Financial Year but now may begin to be paid again; I would imagine many of these will notify the change even though they may not have to. The best I can come up with advice wise, is: if in any doubt as to the meaning of "A20" report the change; the worst that will happen is that your customer's entitlement would be based on their actual income, however your customer could be missing out on an apparent anomaly where if an La did not know of an income they would not (and should not) use it to calculate Hb/Ctb.