May 25 2013 Latest news:
Adam Aiken, Editor
Saturday, July 23, 2011
People who receive tax credits have just a few days left to renew their claims.
The July 31 deadline is rapidly approaching, and HM Revenue & Customs has warned claimants that anyone not renewing by then will see their payments stopped.
Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said: “Normally, renewing your tax credits is a simple case of updating HMRC about changes in your circumstances.
“But because of the changes announced by the government since the last election, the benefits you are entitled to may have changed.”
He added: “The rate at which payments decrease above a certain income threshold has been speeded up, especially for higher earners. The reduction is now 41p – up from 39p – for every £1 above the threshold.
“At the same time, some thresholds have been lowered. The household income threshold has dropped from £50,000 to £40,000.”
Some benefits have been increased. For example, the child element of tax credits is going up this year above inflation, which will help make up for the freeze in child benefit that will affect those on low incomes, Mr Roy-Chowdhury said.
HMRC has issued a new warning about fake emails being sent out by fraudsters in the run-up to the tax credits deadline.
These emails purport to inform recipients about tax rebates, and they provide click-through links to HMRC website lookalikes. Anyone tempted to provide credit or debit card details can then find their accounts emptied.
HMRC said it made contact with customers due tax refunds only by post, and not by telephone or email. It also said it never used third parties to inform people of any refunds.
For more information about renewing your tax credits, call 0845 300 3900 or visit www.direct.gov.uk/renewyourtaxcredits