tax credits

HMRC is warning over 3 million people who receive tax credits that they must renew claims by 31 July - or risk having their payments stopped.

They are being urged to act as soon as they receive a renewal pack from HMRC. Over 3.3 million claimants renewed by the deadline last year – some 80 per cent of those required to do so.

Claimants will also be asked to double-check the accuracy of the information in the pack and of any circumstantial changes not previously reported during the year. These may include working hours, childcare costs or pay.

Having the right documents to hand will help reduce errors when they are filling out the form or calling the tax credits helpline. These would be, for example, payslips, end of year P60 forms and childcare details.

In 2013, Universal Credit will be introduced and by 2017 all Tax Credit customers will migrate to that benefit.