Tax Credits Renewal
Tax credit deadline – a reminder
If you are in receipt of tax credits then it is essential that you renew your claim by 31 July 2017 or your payments could stop.
All current claimants should have received a renewals pack from the Tax Credit Office (“TCO”) which must be actioned by the end of the month. If the pack contains a red line across the first page with ‘reply now’ then you must renew your tax credits by 31 July 2017. If you miss the deadline your tax credits payments will stop. You’ll be sent a statement and will have to pay back the tax credits you’ve been given since 6 April 2017.
If the renewal pack states ‘check now’, then you must check that your details are correct. If no changes are required then you don’t need to do anything and your tax credits will be renewed automatically. You must tell the TCO if anything in your pack is incorrect, otherwise your credits could stop or you could be fined.
You can renew online at the following address. You will need the 15 digit reference number from your renewal pack, your National Insurance number, you and your partner’s total income for the tax year 2016/17 and details of any changes to your circumstances.
If you haven’t received a renewal pack then telephone the helpline on 0345 300 3900.
If you renew online, for the first year HMRC will require that your identity is verified online as a security measure. You will therefore need to have available official documents such as bank or credit card statements, mobile phone and photo ID – such as your drivers licence or passport.
Estimated figures can be used but the actual amounts must be declared by 31 January 2018. This may lead to an under or over payment for the amounts received from April 2017.
New Claims – Don’t Miss Out!
If your circumstances have changed, such as working shorter hours for example, it may well be that for the current year you will fall below the maximum income limits to qualify for tax credits of up to £26,000. The £26,000 limit changes depending on the number of children. If you would like to check your entitlement, then the government has created an online calculator (http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx).
As child tax credits can be worth up to £2,780 per annum for even one child, if you think that there is any chance your income has dropped sufficiently it is essential that you register with TCO now.
Payments can now only be back dated by 1 month from registration therefore it is important to register with HMRC to avoid losing entitlements.
Changes from April 2017
From April 2017, if you’re making a new Child Tax Credit claim for children born on or after 6 April 2017, support is limited to the first two children (unless you have a multiple birth), and the family element is no longer available to claim.
You will still be able to claim the disabled child premium for any of your children who are eligible to get it.
If you are already claiming Child Tax Credits and have more than two children, the changes will not affect you.
If you feel you may qualify for child tax credit or the working tax credit or want help finalising figures for an existing claim please contact our Tax Director, Jenny Marks.
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