Tax credit renewals are due by Saturday, and ‘guidance notes’ for payments have been issued.

0

Tax credit renewals are due by Saturday, and ‘guidance notes’ for payments have been issued.

Claimants for TAX CREDITS have only a few days to renew their claims before their payments are discontinued. HMRC has published guidelines on what needs to be done ahead of time, stating that thousands of people are at danger of missing out.

Over 300,000 tax credit claimants have just until Saturday to renew their claims, according to HMRC. This must be done, or they risk having their payments terminated.

HMRC may have sent renewal papers to tax credit claimants, urging them to renew by July 31, 2021.

In light of this, the Low Incomes Tax Reform Group (LITRG) issued a reminder that the credits renewals procedure completes tax credit awards for the previous tax year (2020/21) and serves as a claim for the current tax year (2021/22).

Claimants who do not yet know their real income for 2020/21 must submit an estimate by July 31 and then contact HMRC by January 31, 2022 to either confirm or replace the estimate with the actual statistics.

If someone claimed tax credits at all during the 2020/21 tax year, they will receive papers from HMRC, even if they did not receive any money or have already withdrawn their claim, according to LITRG. They must complete their claim for 2020/21 and, if necessary, make a claim for the current tax year by following HMRC’s instructions.

HMRC should have already finalized the 2020/21 claim for people who had their tax credits claim stopped and went on to claim Universal Credit during 2020/21, hence no renewal pack should be delivered.

People who applied for Universal Credit during this renewal period may receive two packs: one to finish the claim for 2020/21 and the other to complete the claim for the current year 2021/22.

“Anyone who has not got their tax credits renewal pack by now should call HMRC to chase it up,” Victoria Todd, Head of LITRG, said.

“If you miss the deadline, you may have to reimburse to HMRC all of the tax credits you’ve received from the beginning of the tax year in April.”

Some claimants will be sent two forms (one with a red line across it) along with instructions. Renewals that require a response are known as “reply-required” renewals. “Brinkwire News in Condensed Form.”

Share.

Comments are closed.