Don’t forget to renew your tax credits

If you are currently receiving tax credits, you only have until 31st July to renew your claim, otherwise your payments could stop.

Child Tax Credit and Working Tax Credit were introduced by the Government in 2003 to help support low income families and encourage people back into work. The amount received is paid directly into the recipient’s bank account and is determined by their level of income. For many, tax credits represent a significant chunk of household income. As such, it is important to make sure you renew to avoid a delay in receiving your payments.

All current recipients of tax credits should by now have received a renewals pack from HM Revenue & Customs (HMRC). To renew, simply read through the pack and then either fill in and return the enclosed confirmation form, or call the tax credit helpline to complete your renewal. HMRC will want to know whether your circumstances have changed, which might include a change in working hours, child care costs or pay.

You will also be asked for details of the previous year’s income so that they can make sure you received everything you were entitled to in the last tax year. If you are employed, rather than self-employed, the information they require will be on your payslips and end-of-year P60 form.

HMRC has also stressed that annual renewal is not the only time to let them know about a change in circumstances. If your earnings or circumstances change during the year, you must let them know immediately.

HMRC’s Director of Benefits and Credits, Richard Summersgill, said:

“It’s important that anyone currently claiming tax credits renews their claim by 31 July, or their money could stop. Don’t leave it to the last minute – renew now and avoid a last-minute rush.”