Tax credit claimants reminded of deadline as 33,600 use new app

As the deadline for renewing tax credits approaches, HM Revenue & Customs (HMRC) has revealed that 33,600 people have used their new app to renew.

Tax credits help working families with targeted financial support, so it is important they renew now before the 31 July deadline to ensure their payments don’t stop.

What are tax credits?

There are basically two:

·        Working Tax Credits for those working a minimum number of hours on a low income. The amount is calculated on income, including dividends.

·        Child Tax Credits are for individuals and couples with children. The relief is generally payable to couples with a joint income of under £40,000, but can vary.

They act as a financial buffer for those who need extra support, whether employees or even a company director, if a business falls on harder times.

It gives a safety net of cash if incomes drop and the amount depends on income and family responsibilities.

Seek professional advice before moving

Tax credits will be replaced by Universal Credit by the end of 2024 and HMRC says many could be financially better off from the move.

Anyone looking to apply sooner are advised to seek independent professional advice before doing so. They will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

HMRC is encouraging more taxpayers or their agents to use the app. It can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC and helping customers to save time and money.

By using the new app customers can:

  • Renew tax credits
  • Make changes to their claim
  • Check any tax credits payments schedule
  • Check their earnings for the year.

HMRC says there are nearly 259,000 tax credits app users, who have used the app more than 10 million times in the last year to do things like check their payment dates and amount.

Need help with tax-related matters? Please call our team today for advice.

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