HMRC warning: Thousands have only weeks left to renew tax credits – ‘payments will stop!’

Martin Lewis outlines eligibility for working tax credit

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HM Revenue and Customs (HMRC) is sounding the alarm 323,700 tax credits customers have one month left to renew their tax credits. The deadline for renewing claims is July 31, 2022 and claimants will see their payments stopped if they fail to meet this date. Tax credits are used by families across the country to boost their finances, with the money becoming increasingly essential due to the cost of living crisis.

Claimants of this assistance can renew their claim before the deadline by logging onto the GOV.UK website or by using the HMRC app.

Those who get tax credits are able to login to their account to check their progress of their claim and renew if they need to.

HMRC will reach out to any tax credit claimants if they need to fill out more information or if there has been changes to their claim.

Alternatively, claimants can use the tax body’s app to complete a variety of tasks, including renewing their claim before the deadline in a few weeks time.

Outside of renewing tax credits, HMRC customers make changes to their claim or confirm their payment schedule.

Furthermore, they can look into their payment record to find out how much they have earned for the year.

Myrtle Lloyd, HMRC’s director general for Customer Services, warned that there is “just one month” left to renew any existing claims.

Ms Lloyd explained: “There’s just one month to go for our tax credits customers to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK.”

It should be noted that customers must report a change in their circumstances that could affect their tax credits claim to HMRC.

Failure to do so could result in the claimant receiving a financial penalty. This penalty could be as high as £300 if they do not report certain changes within one month.

Penalties can go up even further to £3,000 if tax credit claimants give wrong information to HMRC.

Examples of what qualifies as a circumstance change include shifts in working hours, income or childcare.

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Tax credit claimants have recently become eligible for additional support in light of issues regarding the inflation rate.

Recently, the Government confirmed the roll out of a cost of living payment worth £650 which will be given to those in receipt of tax credits.

This support will be payable in two separate lump sums of £326 and £324 this year to address the rise in energy bills and inflation.

The tax body will contact claimants and issue payments automatically, with the first being made from the autumn.

By the end of 2024, tax credits will be discontinued and will be entirely replaced by Universal Credit.

According to HMRC, existing customers who transition from tax credits to Universal Credit will be “financially better off”.

The tax body confirmed that customers will be able to use an independent benefits calculator to check how much they will get.

Further inflation on changes to tax credits can be found on the GOV.UK website.

Tax credits have been replaced by Universal Credit, and a person can only make a claim for Child Tax Credit or Working Tax Credit if they already get tax credits.

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