Tax credits - have you renewed?
If you have received a tax credits annual declaration form for the year ended 5 April 2011 from HM Revenue & Customs then action is required by 31 July 2011. Detailed information can be found on the form or on the Revenue's website, but broadly you are required to provide details of your personal circumstances and income for the year ended 5 April 2011 by 31 July 2011 by either phoning the Revenue or sending back the form to ensure the tax credits “award” for 2010/11 is correct and to claim for the current tax year, 2011/12. If you do not yet know your income for 2010/11, for example you are self-employed, then estimates may be used but actual figures must be provided by 31 January 2012 or the estimates are then used to finalise your tax credit award for 2010/11. The form does state that “if we do not hear from you by 31/07/2011 your payments will stop”; “you may have to pay back any overpayment if your payments last year are wrong” and “you may have to pay back any money you have had since 6 April”. The form also makes reference to a “penalty”! The message clearly is to have matters dealt with by 31 July 2011. If you are reliant upon the figures in your 2011 tax return and this has not yet been completed or you need general assistance with tax credits, why not let us help? and remember an initial consultation is FREE!
The above is for general guidance only. Buick & Co Chartered Tax Advisers take no responsibility whatsoever for this blog, its reliability or any actions you take having read it. If any tax planning is to be undertaken specific advice should be sought beforehand from a professional tax advisor.