Tax credit workings scrutinised

The institute is looking to work with the Inland Revenue to fix the problems that its members have encountered, saying that tax credit claimants who are unable to afford professional help will be hit particularly hard by the problems.

Top of the list of issues to resolve, said CIoT president Tim Ambrose, is the three-month rule that stipulates claimants have to keep the Revenue fully up-to-date with their personal circumstances, or risk losing entitlement or being penalised.

‘The three-month rule does not sit well with a system that is based on income for a full tax-year, leading many members to advise clients to make protective claims, resulting in additional work all round,’ said Ambrose.

Communication with agents was another area that CIoT members felt needed work. Claimants need to be sure that those handling their claims are fully up-to-date with their claim.

Related reading