27 June 2024 , 16:11
1355
0
Households are being put on high alert as a crucial tax deadline in July could hit pockets hard if missed. In the shadow of the general election, a critical date looms for those on Tax Credits, including Child Tax Credits and Working Tax Credits recipients, who must heed their July cut-off point.
The clock is ticking towards the 31st of July deadline for tax credit renewals, leaving claimants with just over a month to act, while newcomers can no longer apply as these benefits have now been absorbed into Universal Credit. Forgetting to update HMRC about any changes in personal circumstances by the deadline could see individuals stripped of their tax credits or slapped with hefty fines reaching £3,000.
Tax guru Andy Wood from Tax Natives has warned the Daily Express readers that HMRC needs to be informed of any shifts in living situations, childcare, or work status. He cautioned: "Failure to do so could result in major financial consequences, such as loss of tax credits or fines of up to £300."
Wood also pointed out that renewal packs should have landed in the hands of tax credit beneficiaries by June 19, stressing that the July deadline is crucial for "ensure the smooth processing of claims" and to avoid any payment disruptions for those dependent on this financial support.
Andy has highlighted that Brits can update their details with HMRC regarding changes to their circumstances either online or via phone assistance. He advises having your National Insurance number, income information, and the specifics of the changes ready to "streamline the process".
Date millions on Universal Credit and benefits will get a pay rise this year
Households that don't keep HMRC informed about these changes correctly could be hit with fines up to £3,000, lose their credits, or face repayment demands, warns the expert.