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Families are being hurriedly reminded to complete and submit their tax credits renewal form as the July 31 deadline looms ahead.
Whether they are receiving working tax credits for being on a low income, or child tax credits to help them with childcare costs…it is essential that families submit their renewal form on time to continue receiving these benefits.
Official data from the HMRC shows that over 650,000 claimants last year failed to renew their tax credits by the deadline, leading to their money being stopped.
There are also many people who fail to complete their form correctly, which can also lead to their tax credit payments being disrupted. Details required include things like changes to personal circumstances; childcare costs; level of income and working hours.
Tax credit claimants will also need to have classified evidence of certain information, such as payslips, end of year P60 forms and childcare payment details.
HMRC says it has sent out 5.8 million tax credit renewal packs in recent weeks, of which 3 million are required to be completed and returned before the July 31 deadline date.
However, 1.5 million of these have still yet to be returned, despite little over a week left to go before the end of the grace period.
Alison Taylor from benefits assistance service Turn2Us, says:[quote]It is important to renew your tax credits before the end of July as this helps to ensure you have been paid the right money during the previous tax year, and that you get the right amount for the new tax year.
“If you don’t renew on time, your payments might stop or you could miss out on extra tax credits you could be entitled to.
It’s important that families act today to ensure they do not lose this lifeline.”[/quote]
If their form does not reach HMRC before the cut-off date, they risk not only having their payments stopped but also having to repay all the tax credits they have received so far this year. Claimants are therefore advised to renew as early as they can.
Renewing early also means there is less chance of a delay, should their form be completed incorrectly and require any amendments.
The easiest way to renew is by calling the Tax Credits helpline, but phone lines may be very busy from now up until the deadline. Callers must also ensure they have all the necessary documents to hand before calling.
Claimants can also renew online, by post, or via the HMRC mobile app.