Tax credits renewal – report changes to HMRC
May 12, 2021
If you claim tax credits, then you should soon be in receipt of one of the 2.5m annual renewal packs that are currently being sent out by HMRC. You need to make sure you check the details and update HMRC about any change in circumstances, possibly brought about by Covid-19.
All claimants should have received their pack by 4 June, and then you have until the deadline of 31 July to confirm that all the details contained in your annual tax credits renewal pack are correct. You may have earned less than in previous years due to the pandemic, and if so make sure your income details have been updated.
If your working hours have reduced temporarily because of Covid-19 then you don’t need to report this. HMRC will treat you as working your normal hours until the Coronavirus Job Retention Scheme ends.
If you are renewing online via Gov.uk you may notice that HMRC has recently added a section on payments relating to coronavirus, which lists any coronavirus-related payments which you must count towards your income in relation to claims and renewals for tax credits.
If you are self-employed it’s important that check your figures carefully and pass all these to HMRC. You need to include any SEISS grants you’ve received (grants 1-3) in your 2020/21 income figures when renewing your tax credits. This only needs to be provisional at this stage (as long as you flag it as such), and then you have up to 31 January 2022 to confirm it.
Be aware that various changes in your circumstances can affect your tax credit claims. Any of these changes need to be reported to HMRC, and these include changes to:
- working hours
- income (increase or decrease)
- living arrangements
You can check the progress of your tax renewal online or using the HMRC app on your smartphone. Remember to be aware of any scams from criminals purporting to be from HMRC – their messages can come via email, text or phone and can appear very authentic. If you are contacted by someone claiming to be from HMRC, and they ask for your bank or personal details, or demand you transfer money, then this could be a bogus communication. Check GOV.UK for HMRC’s scams checklist, and to find out how to report tax scams and recognise genuine HMRC contact. If you’d like any help or advice please get in touch.