A looming tax deadline is fast approaching and HMRC could fine £3,000 per person for those who miss it or fail to inform the taxman about changes to their personal circumstances.
Tax credits are a form of boost to your pay packet that must be claimed directly from HMRC and include Child Tax Credits and Working Tax Credits.
New applications can no longer be made, with both schemes having been rolled into Universal Credit, but for the potentially millions out there still on tax credits, they have to renew them every year or risk losing them – as well as a possible fine.
The deadline for renewing tax credits is July 31, meaning there’s less than one month left in terms of working days to get it sorted.
Andy Wood, tax expert from Tax Natives said the important upcoming deadline of July 31st for tax credit claimants to report changes, or risk fines of up to £3,000.
He said: “If you are a tax credit claimant, you should inform HMRC of any changes in your circumstances, such as changes in living arrangements, childcare situations, or employment status. Failure to do so could result in major financial consequences, such as loss of tax credits or fines of up to £300.
“Around 730,000 people will be sent renewal packs by June 19, with the deadline set for July 31. These deadlines are in place to ensure the smooth processing of claims and to prevent any interruptions in receiving tax credits.
“You have multiple avenues to report changes, including online platforms and phone assistance from HMRC. Using these channels ensures that changes are accurately recorded, providing peace of mind for claimants and keeping the process efficient for HMRC. Having your National Insurance number, details of changes, and income information ready before contacting HMRC can also help streamline the process.”
The tax expert went on to add that loss of tax credits, repayment demands and even “fines of up to £3,000” can hit households if they fail to provide correct information.
