Tax Credits are payouts from the Government that provide people on low incomes with extra spending money. There are two types of Tax Credit – Child Tax Credit and Working Tax Credit. Depending on your circumstances, you could be eligible for both. Whether you qualify and how much you could get will also depend on your household income and circumstances. But, for those already receiving Tax Credit, there is a looming deadline to renew your benefits.
When is the deadline to renew Tax Credits?
An estimated 2.8 million claims for Child Tax Credit and Working Tax Credit will be automatically renewed this year.
However, for an additional 150,000 people, they will need to actively renew their claims by Friday, July 31, 2020.
If you fail to do this, not only will your tax credit payments stop, but you will also be unlikely to be accepted for the benefit again.
The reason for this is because Universal Credit has mostly replaced Tax Credits for new claimants, other than for those who are entitled to the Severe Disability Premium.
However, there are increasing fears that being moved on to Universal Credit will leave benefits claimants much worse off financially.
Whether you need to renew your credits or not, you will also need to check your application to make sure nothing in your circumstances has changed.
If any information held by HMRC is incorrect or incomplete, you could have to pay back any Tax Credits which have been deemed to be overpaid, as well as a potential fine of £3,000.
Director General for customer services at HMRC Angela MacDonald urged claimants not to miss the deadline.
Who needs to renew their Tax Credits?
Claimants will receive a pack in the post. There are two different packs, and what you need to do will depend on the one you receive.
If you get a red-striped pack, it means you have to renew your Tax Credits before the deadline on July 31.
If you receive a pack with blue stripes across the front, this means your case will be automatically renewed, and you will need to review the information.
HMRC says those who are self-employed, in receipt of taxable benefits such as ESA, and people with multiple sources of income, are most likely to receive the auto-renew pack.
Alternatively, you can renew by post or by calling HMRC on 0345 300 3900.
You will need to have the following information to hand:
- Your renewal pack (If you do not have one, contact HMRC).
- Your National Insurance number.
- Details about any changes to your circumstances.
- You and your partner’s total income for the last tax year (April 6, 2019, to April 5, 2020).
- The 15-digit renewals reference number on your renewal pack if you are renewing by phone.
Published at Wed, 22 Jul 2020 21:24:03 +0000