Vital tax credit deadline looms

July 31 is tax credit renewal deadline day

Up to four million tax credit claimants have until midnight to let HM Revenue & Customs (HMRC) know of any changes to their circumstances.

Changes to circumstances, such as a pay rise or a divorce, can affect the level of tax credit award.

Failing to complete a tax credit form can lead to payments being stopped.

In addition, claimants who make mistakes on their renewal forms may be overpaid tax credits, which will have to be repaid at a later date.

Missed deadlines

Tax credits - Child Tax Credit (CTC) and Working Tax Credit (WTC) - are paid during the tax year on an estimated basis, based on the claimants' income from the year before.

The deadline for submitting this income data through a tax credit renewal form is 31 July.

If this deadline is missed, the award for tax credits is cancelled and any provisional payments will have to be paid back.

Some claimants, however, have been told by the HMRC they have to do nothing unless they know that their circumstances have changed.

Recently, the HMRC urged those who think they may miss the 31 July tax credit renewal deadline because of flooding to contact its helpline.

The tax credit helpline number is 08453 003 900.