Tax credits. Changes in notification rules

Tax credits. Changes in notification rules

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We phoned TCO on behalf of client on instructions of the latter to notify TCO of a "change of circumstances" being a new employment at more than 30 hours per week.  We were asked for the PAYE reference and name and address of employer, at this time unknown to us.  We were advised by TCO that without this information they could not accept our notification.

I could not find anything in the TC regs which specified this requirement (or which delegated to TCO the authority to specify it).  Any takers?

With kind regards

Clint Westwood.

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By manzar
19th Oct 2011 16:03

re: PAYE office information

 

Hello Clint,

 

Im not too sure whether where it is written. But they use the information to verify the payroll matches the information you provide. Its another method of fraud prevention.

 

Regards

 

Manzar

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By accountant_87
19th Oct 2011 16:06

Yep

My wife deals with them when claiming tax credits.

 

Everytime I change jobs she asks me for the PAYE reference number as they always ask her as well as name and addres of employer.

 

I have never really thought about though if I am honest.

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By nogammonsinanundoubledgame
20th Oct 2011 09:43

I can understand the benefits ...

... and have no objection to researching and providing the information.

My concern is that there are strict statutory deadlines for notifying changes in circumstances.  As little as one month in this case.  In my experience claimants have enough trouble just picking up the phone and notifying ANYTHING within that period, let alone heaping further admin on it which could add to delays.

By the time that TCO will have ANY interest in matching up PAYE returns with tax credit returns, they would be well beyond the 1 month notification deadline.  Things like that can be sorted out in due comfort.

And what if the employer has only just set up in business, and does not yet have a PAYE scheme reference set up?

Or what if the employer does not even require a PAYE scheme?  It can happen.  Employee paid at below LEL, signed P46, or foreign employer having no management presence in the UK (Ok employee would have to set up a scheme - again possible delay there).

Or what if the employer simply has not got a scheme in default of the regulations.  Should the employee be penalised for being unable to notify circumstances?

At the end of the day, whatever the merits of the requirement, it does have to be a REQUIREMENT, set out in some regulation.  It may be their PRACTICE to ask for the information, but without a requirement in law there is no basis for their insistence.

It is their *practice* to ask company directors to register for SA tax returns, but we all know that is bogus.

With kind regards

Clint Westwood.

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