Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

The government made tax credits available to reduce the amount of money some people pay in tax. The amount of tax credits that you receive depends on your circumstances, so it’s important that you keep this information up-to-date and report any changes to HMRC.

If you receive tax credits then you’ll be sent a renewal pack each year. Your renewal pack will confirm the deadline date for renewing your tax credits.

The deadline to renew tax credits for most people is

31st July.

Updating and renewing your tax credits

If you receive Child Tax Credit, Working Tax Credit, or both, you should report any change in your circumstances to HMRC within one month of them happening. This is to make sure that you receive the right amount of credit. You might also need to renew your tax credits each year, though for some people this will happen automatically.

How do I update my Tax Credits?

You can report any changes to your circumstances, renew your tax credits, and check your payment schedule using the HMRC app, or by signing into the Government Gateway service.

What should I do if my tax credit renewal pack is wrong?

HMRC sends out renewal packs to everyone receiving tax credit. If any of your details are wrong, you must let HMRC know as soon as possible using either the app or the online service. If your details are correct, and HMRC have not asked you to submit a renewal, you don’t need to do anything.

What happens if I don’t renew my tax credits on time?

If you don’t renew your tax credits on time, HMRC will stop making tax credit payments, and you may need to repay any credits you received from the start of the tax year onwards (a tax year starts 6th April). If you contact HMRC within 30 days then you may be able to restore your payments. If you miss that deadline, but you want to continue receiving tax credits, you’ll need to explain why there was a delay.
 

Comprehensive tax return services

From only £24.50 per month

Learn more

What if I don’t know what my income will be to renew my tax credits?

If you’re self-employed and have not yet submitted your Self Assessment tax return, you should make a reasonable and fair estimate, and submit your profit and loss report as part of your tax credit renewal.

You’ll then have until the Self Assessment tax return deadline to confirm your income using the online management service. Just be aware that you won’t be able to claim any underpayments in the future, but you might have to repay any overpayments you receive.

Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Read more posts...

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What’s the Most Tax Efficient Director’s Salary?

As a director you’re legally separate from your limited company even if you’re also the owner. This means you’re not allowed to…

Read More

What’s the Difference Between the National Living Wage and the National Minimum Wage?

The National Living Wage (NLW), the National Minimum Wage (NMW), and the Living Wage all sound confusingly similar, so understanding how they…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.