International Association of Accounting Professionals

Tax credits: 31 July deadline looms

People claiming tax credits must tell HMRC about any changes to their circumstances or income by 31 July.

In a statement the revenue said: “Renewing tax credits online is quick and easy. Customers can log onto GOV.UK to check the progress of their renewal, be reassured that it’s being processed, and know when they will hear back from HMRC.

“While most tax credit awards will be renewed automatically in 2020, the self-employed, those in receipt of taxable social security benefit, or those who have other income may need to review their total household income and tell HMRC if the income held is incorrect.

“Customers who need to respond to the Annual Review pack will need to do so by 31 July – or their payments will stop.”

HMRC’s Director General for Customer Services, Angela MacDonald said: “During these uncertain times, while the UK comes together to combat COVID-19, tax credits payments are a vital source of support for millions of people and their families.

“If you have been contacted by HMRC to provide your income details, I urge you to contact the department before 31 July. “Don’t leave it too late, get in touch and make sure the information we hold is correct.”

If any information HMRC holds is incorrect or incomplete, claimants may have to pay back any tax credits that have been overpaid. They may also have to pay a penalty.

But HMRC warned: “Customers should be aware that criminals could take advantage of tax credits renewals to text, email or phone the public, offering fake support. The scams mimic HMRC messages in an effort to look genuine.”