HMRC is warning taxpayers who claim tax credits they have just one week left to tell HMRC about changes to their circumstances or income before the renewal deadline on 31 July, or risk incorrect payments
Taxpayers whose circumstances have changed in the last year or who have received a letter to reconfirm their income details must contact HMRC.
Failure to respond by the deadline may mean tax credits customers receive incorrect tax credits payments and may end up having to repay any overpayments.
Angela MacDonald, HMRC’s director general for customer services, said: ‘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.’
Individuals who received an annual review pack or text and have already made their declaration including confirming their income and circumstances, do not need to do anything else.
However, taxpayers need to contact HMRC straight away if they disagree with any of the information in the pack or letter, need to report any changes, or are self-employed and the income HMRC holds for 2019/20 is an estimate because they have not yet filed their tax return (they will then have until 31 January 2021 to tell HMRC their actual income).
In April, HMRC announced working tax credit taxpayers would receive up to £20 extra each week from 6 April 2020 until 5 April 2021 as part of a number of measures to support the country during the coronavirus pandemic. To make sure the information HMRC holds is correct and up to date, letters have been sent to some customers to reconfirm their income details.
Tax credits are to be gradually replaced by universal credit.
Source: Accountancy Daily