With the UK deficit ever expanding, the government is looking at ways to reduce their overall debt. As a result HM Revenue and Customs (HMRC) have become more proactive in recent years with respect to collection of overpaid tax credits. Tax credit claimants have around three weeks to renew their claims – or payments might stop. The deadline is July 31.
Alan McCappin, Practice Manager for Bradleys Accountants, says, “We know that most families will use best estimates of their income which may substantially differ from their actual income. It is our recommendation that you submit your accounts information to us before the 31st of July to ensure HM Revenue and Customs are supplied with the correct income information to support your tax credit submission.”
Alan went on to say, “The sooner all claimants present accurate income figures, the sooner the HMRC can check if benefits received by the applicant are correct. This will reduce the likelihood of having to repay overpaid tax credits years later.”
If you claim tax credits, you should have been sent a renewal pack within the last three months. You should check the accuracy of the information in the pack, and tell HMRC about any changes to your circumstances that they haven’t already reported – such as working hours, childcare costs or pay.
In addition, you must also tell HMRC whether you’re single or living with a partner, and HMRC might write to you asking for further information and documents so that the department can check that the information provided is correct.
Having the right documents available will help reduce mistakes when you are filling out the form. These documents would be, for example, payslips, end of year P60 forms and childcare payment details.
Bradleys Accountants can help with completion of personal tax returns to ensure the correct details are submitted as part of a tax credit renewal.