| 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 |
