Tax Credit: New online system
It's nearly that time of year again.... If you miss the deadline;
> Your payments will stop
> You will have to pay money back
For those of you that have no clue what I am referring to - it will be the tax credit deadline. I'm going to let you all know what you need to be doing before the deadline (31 July 2015).
In the past, individuals in receipt of Tax Credits have had to complete their annual declarations by forms and/or spend countless hours on the phone to HMRC trying to get through (0345 300 3900).
TOP TIP: Always call HMRC first thing in the morning (anytime from 8am)
Once through, HMRC ask you a series of security questions to confirm your ID. You let HMRC know your 'estimated/actual' self employment or 'actual' income figures for the tax year ended 5 April 2015.
TOPTIP: You have until 31 January 2016 to update Tax Credits of your 'actual' self employed income for 2014/15.
If you are already a claimant for Tax Credits, then you now have the option to submit your income (estimated/actual) via the internet. HMRC will send you an 'online reference number' which you are prompted for if you renew online
The sooner you update your details, the sooner HMRC will be able to confirm whether or not you have to pay any money back. The reason you are asked to complete the award is so that HMRC can:
Step A: Check that the personal circumstances HMRC based your claim on at the start of your award period are correct.
Step B: Check that any changes made to your claim during your award period are correct. These could be changes you've told HMRC about, or changes HMRC have made. If any changes are missing, or you haven't told them about a change, you must inform them straightaway.
Step C: Check the income details in your Annual Review before filling in your Declaration.
Note: You can still send the form by paper (They send you the envelope, just remember to put a stamp on!)
As we all know, money is stopped when changes occur, so let's also hope this new online system means less of a delay with getting the money put back in the bank and also eradicates the potential debts to be repaid to HMRC.
We're here to help to get it right @taxswag
Help from HMRC available