HMRC warning: Thousands have just weeks to renew tax credits as deadline approaches | Personal finance | Finance

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HM Revenue and Customs (HMRC) is sounding the alarm 323,700 tax credit customers have one month left to renew their tax credits. The application renewal deadline is July 31, 2022 and applicants will have their payments stopped if they miss this date. Tax credits are being used by families across the country to boost their finances as cash becomes increasingly essential due to the cost of living crisis.

Applicants for this aid can renew their application before the deadline by connecting to the GOV.UK website or using the HMRC app.

Those who get tax credits can log into their account to check the status of their claim and renew if they need to.

HMRC will contact all tax credit claimants if they need to provide more information or if there have been any changes to their claim.

Alternatively, applicants can use the tax authority application to complete various tasks, including renewing their application before the deadline in a few weeks.

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Apart from renewing tax credits, HMRC customers change their claim or confirm their payment schedule.

Plus, they can check their payout record to see how much they earned for the year.

Myrtle Lloyd, chief executive of customer services at HMRC, has warned there is ‘just one month left’ to renew any existing claims.

Ms Lloyd explained: “There is only one month left for our tax credit clients to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK. »

DO NOT MISS

It should be noted that customers should report any changes in circumstances which may affect their claim for tax credits with HMRC.

Failure to do so could result in a financial penalty for the applicant. This penalty can be as high as £300 if they fail to report certain changes within a month.

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

Examples of what is considered a change in circumstances include changes in work hours, income, or child care.

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Tax credit claimants recently became eligible for additional support in light of inflation rate issues.

Recently the government confirmed the roll out of a cost of living payment worth £650 which will be given to tax credit recipients.

This aid will be payable in two separate lump sums of £326 and £324 this year to deal with rising energy bills and inflation.

The tax office will contact claimants and automatically make payments, with the first being made starting in the fall.

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

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

The tax body has confirmed that customers will be able to use an independent benefit calculator to check how much they will receive.

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 claim a child tax credit or a working tax credit if they already have tax credits.

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