HMRC warns Britons payments may be stopped as thousands yet to renew tax credits
HMRC assists individuals in dealing with their tax affairs every day, but also issues important payments such as tax credits. Each year, Britons in receipt of tax credits will need to renew their claim to continue receiving the sum to which they are entitled. There is only a month left for individuals to renew their tax credits claim as the deadline falls on July 31.
Therefore, action is needed for people to get their affairs in order ahead of time, with HMRC stating 440,000 tax credit customers are still yet to renew their claim.
Over 2.5million annual tax credit review packs were posted out to customers between late April and early June.
Some individuals will have received an ‘auto-renewal’ reminder, while others got a ‘reply required’ notice.
The latter group will need to renew their claims, or reach out to HMRC to inform them of any changes to circumstances.
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Britons will always need to report a change in their circumstances when it comes to tax credits.
This is because a life change could impact the amount a person is entitled to.
Such changes include:
- A person’s income increasing or decreasing
- A person’s living arrangements changing
- A person’s working hours changing
- Childcare arrangements changing
Individuals will need to report their changes as soon as possible to make sure they get the right amount of tax credits.
If it is found a person has been overpaid, then they will be required to repay the money to HMRC.
If someone’s tax credits stop, they will not be able to claim tax credits again.
But if working hours have changed as a result of COVID-19, for example being placed on furlough, this does not need to be reported.
The Government has said it will treat people as if they are working their normal hours until the furlough scheme finishes at the end of September.
The deadline for reporting changes has been outlined as one month, but raising the issue sooner can help with paying the correct amount.
There are also consequences for those who don’t raise the issue of changes as and when they occur.
A fine of £300 can be issued for late reporting, and up to £3,000 if a person provides the wrong information.
Most of these changes will be able to be reported online via the Government’s dedicate portal on its official website.
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