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Tax credit recipients should be given extra time to complete returns

More than a million people who have to complete their tax credit renewal information by the end of the month should be given an extra month to complete their returns, says Fiona Fernie.

Some 1.2million tax credit renewal notices with incomplete information were sent out to homes across the country. The notices normally show what income details HM Revenue & Customs (HMRC) have for individuals, but this year they did not.

This means that it will be difficult for people to check that the notices were correct. The Revenue have apologised and explained that the omission has not affected their calculations for the proposed payments. They have reissued the notices with income details, but if people are trying to check their renewal notices they will now have less time and many of them may be confused.

Tax credits are given to low-paid working households and are benefits that can assist with childcare costs. These households need to check their renewal notices very carefully.

HMRC need to be considerate if people get it wrong since they have caused the increased rush to get the appropriate checks made, so it would be sensible for them to extend the time so that people can get their return back at the end of August rather than the end of July.

Would you like to know more?

If you would like to discuss any of the above guidance or have other queries about how you can make the right decisions for the future of your business and your income, please contact Fiona Fernie or your usual Blick Rothenberg contact.

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