Tax credit renewals
Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2014. Claimants who do not renew on-time may have their payments stopped. Last year 650,000 claimants failed to renew on time.
Claims can be renewed by post and by phone and this year for the first time, claims can be renewed online but only if there are no changes to report. A recent press release from HMRC highlighted the fact that so far this year 135,000 people have submitted their tax credits renewal online.
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 on the form 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.
Nick Lodge, HMRC’s Director General, Benefits and Credits, said:
‘Loads of people have already renewed their tax credits claim online, and have found it quick and easy to do. We’ve now made it even better and are encouraging everyone to renew online if they can, at a time that suits them. The most important thing is to renew before the 31 July deadline, so as not to risk losing your money.’