Tax credit renewal final reminder
This coming Monday (31 July) is the last day for families and individuals that receive tax credits to renew their tax credit. As in previous years, there is expected to be a huge last-minute rush and it may be difficult to contact HMRC by phone.Claims can be renewed by post, phone or online. A press release from HMRC released on 24 July highlighted that almost one million renewals were outstanding. According to HMRC the online renewal process has been improved and now allows taxpayers to track the process of their renewal, and receive email confirmation once submitted. Rachel McLean, HMRC’s interim Director General of Customer Services, said:’It’s fantastic that 32,000 have used our app and 733,000 customers have already renewed their tax credits online. I urge customers who have yet to renew their tax credits to do so as soon as possible, thereby avoiding having their payments stopped. The 31 July deadline is fast approaching.’Claimants need to notify HMRC of any changes to the family size, child care costs, number of hours worked and salary. Details of previous year’s income also need to be completed to allow HMRC to check if the correct tax credits have been paid.Claimants must also inform HMRC of any changes in circumstances not already reported during the year such as new working hours, different childcare costs or changes in pay.Planning note:Once the deadline has expired, anyone who has not yet renewed their tax credits should still ensure they do so as soon as possible as otherwise their payments may be stopped and monies received since last April may have to be repaid. Last year 410,000 claimants had their payments stopped or altered due to missing the deadline. We would strongly advise any of our readers who have not yet renewed, to do so as a matter of urgency.