Tax Credits Renewal
Tax credits are state benefits which are generally available
to lower income families. However, entitlement to the credits
is significantly increased where individuals pay for childcare
or have a dip in normal levels of income perhaps due to incurring
trading losses.
Individuals who have already claimed tax credits for 2007/08
have to finalise their provisional award, which would have
originally been based on their 2006/07 income, and advise HMRC
of any changes in their circumstances for 2008/09. This procedure
is known as the renewals process. The deadline for the submission
of tax credit renewals is 31 July 2008.
HMRC have been busily advertising the renewals process in
the national press and on their website. Claimants need to
be aware that the payment of tax credits will stop at the end
of July if they have not renewed their applications by that
date.
HMRC are also reminding claimants that the deadline for letting
them know that their circumstances have changed is just one
month. Some examples of the sort of changes which have to be
notified ‘in year’ are changes in family circumstances,
perhaps a partner moving in or out of the family home, or a
reduction in childcare costs. A reduction of £10 a week
for a mere four weeks has to be reported!
If you need any help with the completion of your form or any
advice on tax credits generally please do get in touch.
Internet link -
HMRC guidance |
