HM Revenue & Customs (HMRC) has reminded taxpayers to renew their tax credits before 31 July 2019 or risk having their payments frozen.
Tax credits – which help working families with support, such as free childcare – do not automatically renew each year, which means families must apply again.
This is because the amount of credit each family is entitled to changes based on your circumstances, such as working hours, income, and any other benefits claimed.
To renew tax credits quickly and easily, taxpayers can follow this link or use the official HMRC app.
The deadline to renew tax credits is 31 July 2019. However, those who first claimed tax credits after 06 April 2019 will not get a renewal pack until April 2020.
Commenting on the report, Angela MacDonald, Director General for Customer Services at HMRC, said “failure to renew before the deadline will mean payments are stopped” and customers “may have to repay the money they have received since April 2019”.
She added: “We know that customers lead busy lives, which is why our online services are available day and night. Customers can complete their tax credits renewals at a time convenient to them. Renewing on time is vital to ensure that their payments don’t stop.”
The report comes shortly after HMRC reminded parents that they could be entitled to up to £2,000 of tax-free childcare to pay towards regulated holiday clubs during the summer break.
To receive the tax break, parents must actually pay into a Tax-Free Childcare account. For every £8 that families pay in, the Government will make a top-up payment of an additional £2, up to a maximum £2,000.