Nearly half a million taxpayers yet to renew tax credits, HMRC warns

Almost half a million tax credit customers have yet to renew their claims ahead of the 31 July deadline, it has been warned.

HM Revenue & Customs (HMRC) reminded taxpayers that certain tax credit claims do not renew automatically.

According to the report, some 2.5 million annual tax credits renewal packs were posted to customers between April and June this year.

But approximately 440,000 adults risk having their tax credits – such as child tax credit or support for disabled workers – cancelled because they have not responded to a “reply required” notice.

For example, self-employed taxpayers in receipt of tax credit are required to estimate their profit or loss for the coming tax year, as well as declare any grant payments under the Self Employment Income Support Scheme (SEISS), and report this information to HMRC by the same deadline.

Workers on furlough, however, do not need to report any temporary falls in working hours as a result of the coronavirus, as they will be treated as if they are working their normal hours for up to eight weeks after the Coronavirus Job Retention Scheme (CJRS) closes.

Reminding customers to renew now, Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We know how important tax credits are to our customers, so we’ve made it quicker and easier to renew claims online. There’s no need to wait for the 31 July deadline – do it now by searching ‘tax credits’ on GOV.UK.”

To update your tax account and renew your tax credits, simply visit GOV.UK, log into the HMRC app on your smartphone, or get in touch with an HMRC representative.

For help and advice with related matters, please get in touch with our expert team today.

Posted in Blog, Tax, Tax Blog, Tax News.