HMRC confirms that people not working their normal hours because of coronavirus will retain entitlement to their usual tax credits

Claimants do not need to contact HMRC as they will be treated as working their normal hours until the Job Retention Scheme and Self-Employment Income Support Scheme close Her Majesty’s Revenue and Customs (HMRC) has confirmed that people who are not working their normal hours because of coronavirus will retain entitlement to their usual tax credits.

Setting out the new measure today, the government advises that -

Those working reduced hours due to coronavirus or those being furloughed by their employer will not have their tax credits payments affected if they are still employed or self-employed.

These customers do not need to contact HMRC about this change. We will treat customers as working their normal hours until the Job Retention Scheme and Self-Employment Income Support Scheme close, even if they are not using either scheme.

We’ll use the information we hold about the number of hours they normally work.

Customers can still report any other changes in income, childcare and hours in the normal way. However, they must tell us if they or their partner lose their job, are made redundant or cease trading.

NB - under normal rules for employees, set out in HMRC’s technical guidance on tax credit entitlement when laid off, they are treated as engaged in remunerative work for four weeks after the lay off, or until they are laid off indefinitely if shorter, so that they continue to receive tax credits for that period (in addition to any entitlement to a four-week run-on).

For more details see Tax credits customers will continue to receive payments even if working fewer hours due to COVID-19.

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