In order to avoid being overpaid, underpaid or having payments stopped, HMRC today issued a reminder to the 5.8 million people claiming Tax Credits.
Every year the date by which claimants must advise HMRC of the previous years income and intention going forward is 31st July. Despite warning well in advance of the renewal deadline, last year 10 percent of people actually missed the date.
Claimants must advise of changes such as:
- Working hours
- Costs of childcare
It is more important to make sure claimants get the right information in early as the disregard (amount a claimant's income can change by before credits are reduced) has been dropped from £10,000 to £5,000.