Clock is ticking for tax credits renewals - LITRG Press Release

Published on 25 July 2013

The LITRG is urging anybody who has received renewal forms from HMRC and who has not yet completed and returned them to do so by July 31st or risk having their payments stopped.

Now that the 2012/13 tax year has ended, HMRC need to know your actual 2012/13 income so that they can confirm whether they paid you the right amount during 2012/13, and use up-to-date income details to confirm your initial payments in 2013/14.

LITRG’s Chairman, Anthony Thomas, said:

“It is crucial that claims are renewed by HMRC’s deadline; failure to do so can result in payments being stopped and you could be asked to repay all of the tax credits paid since the start of the tax year (April 6th). This would be very worrying for many claimants. If you miss the deadline, you might be able to plead good cause in exceptional circumstances – but the only safe course is to renew on time.

“Once you have renewed, your claim to tax credits for the current year 2013/14 is confirmed and your entitlement will be backdated to 6 April 2013.

“Claimants should have received the 603R form (and in most cases, a 603D form) with accompanying guidance notes. These notes should be read through carefully as they explain what counts as income for tax credits and what deductions are allowable from income. Claimants with both forms need to contact HMRC by 31 July 2013 to confirm their income and circumstances for the 2012/13 tax year.

“Some people will receive only one form – the 603R. These are auto-renewal cases, meaning you only need contact HMRC if your circumstances have changed (working hours, childcare costs etc.); the following groups are likely to be auto-renewal cases:

  • Those receiving the full family element of child tax credit only
  • Those who received income support, income based jobseeker’s allowance, income related employment and support allowance or pensions credit for the full year
  • Those who have a nil award

“Even if you do not want to continue to get tax credits in 2013/14 or if you are no longer entitled to payments, you must still engage in the renewals process, so that your 2012/13 award can be finalised.

“If you cannot yet give an accurate figure for your previous year (2012/13) income, you have to send HMRC an estimate by 31 July at the latest. You will then have until 31 January 2014 either to confirm the estimate, or to give actual figures. This option can be useful to self-employed people who have not yet finalised their accounts or other people who have to fill in self-assessment forms for income tax.”

Further guidance is available from HMRC’s tax credits helpline on 0345 300 3900 or you can use the textphone service on 0345 300 3909.

Online help from HMRC’s website can be reached here.

There is also more information on the renewals process on our website.

(25-07-13)

Contact: Victoria Todd (please use form at http://www.litrg.org.uk/ContactUs)