HMRC and DWP updates on migration processes for tax credits claimants

Recent Tax Credits Consultation Forum meeting minutes published this week include details of TC finalisation processes and other ‘work in progress’ inlcuding -

HMRC advised members that customers who do not migrate or apply for UC will not get an In Year Finalisation (IYF) notice. Payments will still terminate but the customer will get an auto termination notice from the following April ... HMRC advised that we are currently working on a comms strategy so customers affected will have plenty of notice to plan. We hope to share the strategy very soon with members.

HMRC informed members that we are considering bringing in the IYF process for all customers regardless of whether they move to UC and if this is possible it will not be before 6 April. The termination notice does not give appeal rights, however the TC customer will have appeals rights against the final TC decision (section 18 decision) made on entitlement, not the termination itself.  DWP are responsible for regulations involving TC amendments going forward, but decisions will continue to be made between both departments.

A member fed back that they have had many queries about the move of pensioners who are in a mixed age couple. HMRC advised that DWP are in discussions with ministers and we should be able to provide more information soon.

A member queried about the list of deferrals not currently being sent migration notices ... DWP responded that once they have gone through all the formal governance and the guidance is clearer around who is being deferred and for how long, the information will be shared with members.

More: Tax credits consultation forum minutes - 25 October 2023 from gov.uk