LITRG 'welcomes' changes for couples

Wednesday, December 9th 2009

The Low Income Tax Reforms Group (LITRG) has "applauded" changes in the tax credit system affecting the way couples claim benefits.

HM Revenue and Customs department (HMRC) announced that tax credit overpayments resulting from changes in a couple's circumstances will be reduced by the same amount of money - regardless of whether the changes were reported promptly.

Changes in two claimants' circumstances such as a separation, a death or if two single people begin a relationship must be reported to HMRC within one month.

Under previous rules, if the couple were late reporting such changes, they would have to make a separate claim in their new capacity - as part of a couple, for example.

The rules resulted in "disproportionate" overpayments, said John Andres, chairman of LITRG.

Welfare rights campaigners and LITRG have been urging the government to take the step - reported on December 9th - for "a number of years" according to the group.

Some nine in ten families with children are entitled to claim tax credits, says HMRC.

If you are in a couple you are not entitled to claim as a single person, the department advises.