Don't lose your credits

There were up to four million tax credit claimants leaving it late to let HM Revenue & Customs (HMRC) know of any changes to their circumstances.

Changes such as a pay rise or a divorce, can affect the level of tax credit award.

Stopped Payments

Failing to complete a tax credit form can lead to payments being stopped. For those in financial problems then this could mean even more headaches - but easily done because attention could be on other matters.

In addition, claimants who make mistakes on their renewal forms may be overpaid tax credits, which will have to be repaid at a later date.

Tax credits - Child Tax Credit (CTC) and Working Tax Credit (WTC) - are paid during the tax year on an estimated basis, based on the claimants' income from the year before.

The deadline for submitting this income data through a tax credit renewal form is 31 July.

If this deadline is missed, the award for tax credits is cancelled and any provisional payments will have to be paid back. Some claimants, however, have been told by the HMRC they have to do nothing unless they know that their circumstances have changed.

Advice for flooding victims

Recently, the HMRC urged those who think they may miss the 31 July tax credit renewal deadline because of flooding to contact its helpline.

The tax credit helpline number is 08453 003 900.

 HMRC Tax Credits