Do you receive tax credits? If you do, then you should be aware that you have to renew your tax credits claim every year. And, the deadline for renewing your tax credits this year is 31 July.
If you don’t renew your tax credits then your tax credits could stop. So, keep reading our guide to everything you need to know about renewing your tax credits.
Why do I have to renew my tax credits?
The Tax Credit Office asks you to renew your tax credits claim once a year. This is to make sure you have been paid the right amount of tax credits in the previous tax year. It also ensures you’re receiving the right amount of tax credits in the current tax year.
You need to renew your tax credits so that the Tax Credit Office has the right information. This will ensure that you’re receiving the right amount of tax credits.
Do I have to renew my tax credits?
You will need to renew your tax credits if you have been sent an Annual Declaration form (TC603D or TC603D2) with an Annual Review notice (TC603R).
Everyone who makes a claim for tax credits during a tax year gets a renewal pack. This also applies if you claimed tax credits but didn’t get them because your income is too high or if you only received tax credits for part of a tax year.
If you have only been sent an Annual Review notice (TC603R), you won’t need to renew your claim. You may receive this form if you just receive the family element of Child Tax Credit or if you got Income Support, income-based Job Seeker’s Allowance, income-based Employment and Support Allowance or Pension Credit for the whole of the last tax year.
When do I renew my tax credits?
You should have received your renewal pack between 17 April and 30 June. If you haven’t received your renewal pack by 30 June 2012, you should contact the Tax Credit Helpline.
The Tax Credit Helpline will send you the renewal forms you need. You’ll then have 30 days to renew or report a change in circumstances. You can’t get a renewal pack online.
Once you have received your renewal pack you will be able to renew your tax credits claim. You should do this as soon as possible.
The final deadline for renewing is usually 31 July.
There are two ways to renew your tax credits. Firstly, you can complete the Annual Declaration (TC603D or TC603D2) and return it to the Tax Credit Office. The address is:
HM Revenue & Customs Tax Credits
Alternatively, you can renew by calling the Tax Credit Helpline. The Tax Credit Office advises that the helpline normally gets busy as the July 31 deadline nears. It is therefore recommended that you call the helpline to renew as early as you can.
When you renew your tax credits via the helpline, you should have the following information to hand:
- Your tax credits renewal pack
- Your total income for the last tax year
- Details of any changes in your circumstances
You should still renew your claim even if you can’t provide details of your actual income for the last tax year. When you complete your renewal pack you should provide an estimate of your income. You will later have to confirm details of your actual income (normally by 31 January).
What happens to my tax credit payments?
Your tax credit payments will carry on from the start of the new tax year (6 April) until you renew your claim, as long as you renew by the 31 July deadline. Your payments may continue for longer if your renewal pack was issued late.
Bear in mind that the payments you get until you renew your tax credits could be based on out of date information. So the sooner you renew, the sooner the Tax Credit Office can make sure you’re getting the right amount. If you are claiming more tax credits than you are entitled to, you may have to pay back any overpayment.
What happens if I don’t renew my tax credits?
If you’ve been sent an Annual Declaration (TC603D or TC603D2) and you don’t renew your tax credits, your payments will stop. In addition, you will receive a statement showing you whether you’ve been paid too much, or not enough, in tax credits. You will have to pay back any overpayment from both the previous tax year and from the start of the new tax year.
You will get a statement from the Tax Credit Office about your tax credits payments and you then have a further 30 days to provide the information requested in your tax credits renewal pack.
If you don’t provide the information within 30 days, you will usually have to make a new tax credits claim.
I have renewed my tax credits claim. What happens next?
Once you have renewed your tax credits claim, the Tax Credit Office will send you an award notice for both the last tax year and the new tax year. This will also detail any overpayments or underpayments that apply. You can expect to receive this award within around eight weeks. If you haven’t received your award within eight weeks, contact the Tax Credit Helpline.
The Tax Credit Office may write to you to check that you have renewed your credits correctly. And, they may also require you to provide documentary evidence of your income. So, it is important that you keep any relevant paperwork safe.
So, if you haven’t renewed your tax credits yet, act now so you don’t miss the 31 July deadline.