ACT NOW – Tax Credit renewal deadline imminent

Don’t loose out. Claimants whose circumstances have changed in the last year or who have received a letter to reconfirm their income details must contact HMRC before 31 July.

Tax credits claimants have this week left to tell HM Revenue and Customs (HMRC) about changes to their circumstances or income before the deadline on 31 July 2020.

Failure to respond may receive incorrect tax credits and end up having to repay overpayments.

HMRC’s Director General for Customer Services, Angela MacDonald, said:

Angela MacDonald

Tax credits provide much needed financial support to our customers. But we know that many customers leave it to the last minute to renew their tax credits award.

The time to renew your tax credits is now, you don’t need to wait until deadline day on 31 July.

Those who received an annual review pack or text and have already made their declaration including confirming their income and circumstances, don’t need to do anything else.

However, claimants need to contact HMRC straightaway if they disagree with any of the information or need to notify any changes, were self-employed and the income for 2019 to 2020 is an estimate because they have not yet filed their tax return.

How to renew

Renewing tax credits online is quick and easy. Log onto GOV.UK to check the renewal progress, be reassured it is being processed, and know when they will hear back from HMRC.

Claimants can use the HMRC App on their smartphone to:

  • renew their tax credits
  • check their tax credits payments schedule
  • find out how much they have earned for the year

Get help and information on renewing tax credits:

Opinion

Tax Credit renewal can be complicated. It is important to ensure that the correct amount of income is reflected. Families who have had parental leave need to ensure that the correct amounts are reflected. Maternity Allowance does not count as income, yet aspects of Statutory Maternity Pay do subject to allowance limits.

Many aspects are subject to predictions of income which may change, so there are cases where the claimant may receive a grant and due to changes end up having to repay tax credit monies received. It is good to understand why and be prepared to put aside monies for repayment when your circumstance has changed.

If you are struggling with your claim PAYadvice can offer assistance, get in touch urgently and we can see what we can do to assist.

PAYadvice 26/7/2020

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