HMRC letters advising parents about tax credit changes are misleading says a leading tax reform charity. The letter which has been sent to 1.3m homes says the income limit to get child tax credit is £26,000. Low Incomes Tax Reform Group says that figure is for one-child families only and larger families earning over £50,000 may still be eligible. HMRC says the letter is "not incorrect" but "not worded as well as it could be". Victoria Todd of the Low Incomes Tax Reform Group (LITRG) told Radio 4's Money Box programme that the letter was misleading and could prevent some parents claiming tax credits if their circumstances changed:

"If parents with one child and an income of £30,000 receive that letter and their tax credit stops in April, they may not realise that if they have another child they will then become entitled."

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The income limit to qualify for child tax credit is being cut and could result in more than a million households losing their child tax credit entitlement....Read more here--: BBC News - HMRC ‘misleading’ on child tax credits says charity