Renew tax credits by 31 July or risk losing payments
Tuesday 17 July 2018, If you’re claiming tax credits (Working Tax Credit or Child Tax Credit), ICAEW is reminding everyone to renew by the 31 July deadline. If you miss the cut-off date, your tax credit payments will stop and you may have to pay back the tax credits you’ve been given since 6 April 2018.
Jane Moore, ICAEW Tax Technical Manager, said:
“If you claimed tax credits last year, you should have already received your renewal pack - if not, you should contact HMRC as soon as possible. The renewal process gives HMRC the information it needs to finalise tax credit awards for last year, and it will renew the claim for this year.”
If you don’t complete your renewal by the 31 July deadline it could mean:
• Your payments will stop
• You may have to repay all the tax credits you have received so far this tax year
• You might even find yourself with a penalty
“Not everyone will need to contact HMRC, but if your renewal pack contains an Annual Declaration form asking for details of your income in 2017/18, you must reply to HMRC. You should also let HMRC know if there have been any changes in your circumstances which you have not reported previously. If you are a couple and have made a joint claim, you need to give details of income and circumstances for both of you.”
You should ensure you have key documents relating to income when you renew, including payslips and business accounts as well as any childcare costs incurred. If you don’t have the final figures for your income – for example, if you are self-employed but your accounts aren’t ready yet– you can use estimates, but you must still renew by 31 July 2018 and provide the actual figures by 31 January 2019. HMRC may have already inserted income figures on the Annual Declaration using the information it already holds, such as payroll figures sent in by your employer – but you still need to check to make sure these figures are right.
There are four ways to renew: online, using the HMRC app, over the phone or by returning the form in the post.
This year, HMRC has drafted in the help of Amazon virtual assistant Alexa to help with renewals. Customers can ask Alexa to “open HMRC” to ask for help and information relating to change in circumstances, payment information or renewals.
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