TFC40300 - Termination of a tax credit claim: disqualification notices

Childcare Payments Act 2014, section 34

HMRC must give a person a warning notice under section 32 or 33 before they can give the person a disqualification notice. A person can only be disqualified from receiving top-up payments if they have been given a warning notice in the last 4 years.

Where HMRC gives a person a disqualification notice, they cannot open a childcare account, no payments can be made into a childcare account which they hold and any declaration of eligibility they have made is invalid. A copy of the disqualification notice must be given to the account provider. A disqualification notice lasts for the period stated in the notice, subject to a maximum of 3 years.

The period stated in a disqualification notice may begin before the date of the notice but cannot commence before the start of the entitlement period for which the declaration of eligibility which caused the notice to be given was made. This might apply where a person makes a late declaration of eligibility, with the effect that the disqualification notice can be backdated to the start of the entitlement period for which they are making their late declaration. HMRC has the power to revoke a disqualification notice.