Do You Need To Inform About Change In Bank Details If You Claim Tax Credits?

If you are wondering whether or not you need to inform HMRC if there is a change in your bank details when you are claiming Tax Credits, you will find the answer to this question in the following blog post. In addition to this, we will also discuss how and when to inform the HMRC, as well as review the consequences of not keeping them informed of changes in your circumstances.

Do You Need To Inform About Change In Bank Details If You Claim Tax Credits?

Yes, if you claim tax credits and there is a change in your bank details, you must inform HM Revenue and Customs (HMRC) as soon as possible. This is important to ensure that your tax credits payments are not delayed or sent to the wrong bank account.

It’s important to provide accurate information to avoid any delays or issues with your payments. If you fail to notify HMRC of a change in your bank details, your payments may be delayed or even stopped.

It’s also important to note that if HMRC sends a payment to the wrong bank account due to incorrect information provided by you, you may be responsible for recovering the payment from the incorrect account and may incur additional charges. So it’s important to keep your bank details up to date with HMRC.

When Should You Inform HMRC About A Change In Bank Details For Tax Credits?

If you claim tax credits and there is a change in your bank details, you should inform HM Revenue and Customs (HMRC) as soon as possible. This will help to ensure that your tax credits payments are not delayed or sent to the wrong bank account.

It’s important to notify HMRC of a change in your bank details promptly, ideally within 14 days of the change occurring. This will help to ensure that your payments are not delayed and that you continue to receive the correct amount of tax credits.

If you delay informing HMRC of a change in your bank details, this may cause a delay in your tax credits payments. In some cases, HMRC may stop your payments if they are unable to contact you or if they suspect fraud.

How Can You Inform HMRC About A Change In Bank Details For Tax Credits?

You can inform HM Revenue and Customs (HMRC) about a change in your bank details for tax credits by using one of the following methods:

• Online: You can update your bank details online through the government’s online tax credit service. You will need to log in with your Government Gateway user ID and password. Once you have logged in, you can update your bank details in the ‘Change your circumstances’ section.

• By phone: You can contact the tax credits helpline on 0345 300 3900 and inform them of your change in bank details. The helpline is open Monday to Friday, from 8 am to 6 pm. Make sure to have your National Insurance number and other relevant details ready when you call.

• By post: You can download a tax credits change of circumstances form from the HMRC website and fill it in with your new bank details. You can then send the form to HMRC at the address provided on the form.

When informing HMRC about a change in your bank details, it’s important to provide accurate and up-to-date information to avoid any delays or issues with your tax credits payments. You should also keep a record of the date and method of your notification to HMRC in case of any future queries or issues.

What Happens If You Don’t Inform HMRC About A Change In Bank Details For Tax Credits?

If you claim tax credits and you don’t inform HM Revenue and Customs (HMRC) about a change in your bank details, there may be several consequences, including:

• Delay in payment: If your tax credits payment is sent to the wrong bank account due to outdated bank details, it may take longer for the payment to be returned to HMRC and re-issued to your correct account. This delay can cause financial hardship and may affect your ability to pay bills or meet other financial obligations.

• Overpayment: If HMRC continues to send payments to your old bank account, you may end up with an overpayment of tax credits. This overpayment may have to be repaid to HMRC, which can be difficult if you have already spent the money.

• Fraud investigation: If HMRC suspects that you are deliberately withholding information about a change in bank details, they may investigate you for fraud. This can result in a fine, legal action, and criminal prosecution if it is found that you have committed fraud.

Conclusion:

The above discussion helps to conclude that it is essential to keep HMRC updated with a change in your circumstances such as a change in your bank details when you are claiming benefits such as Tax Credits. If you fail to do so, you may be overpaid and will have to return the excess amount to them.

References:

Report changes that affect your tax credits – GOV.UK

How to change your bank details that receive Child Tax Credit

How to notify changes « Changes of circumstances « How do tax credits work? « Guidance «