HMRC: Update tax credit account or risk overpayment

Lamont Pridmore - Accountants

Those in receipt of tax credits must tell HM Revenue & Customs (HMRC) about any changes in their circumstances before 31 July or risk overpayment, it has been warned.

In a new notice, the tax office said tax credit recipients have just “one week left” to update their details.

Tax credits – such as child tax credit and support for disabled workers – are renewed annually, but taxpayers must declare any changes to their circumstances or income each year to avoid being paid the incorrect sum.

Self-employed taxpayers in receipt of tax credit, meanwhile, must also estimate their profit or loss for the 2019/20 tax year and report this information to HMRC by the same deadline, providing they have not already completed Self Assessment.

Those in receipt of tax credits can use the GOV.UK online portal to quickly and easily update their information.

Commenting on the notice, HMRC’s Director General for Customer Services, Angela MacDonald, said: “Tax credits provide much needed financial support to our customers. But we know that many customers leave it to the last minute to renew their tax credits award.

“The time to renew your tax credits is now, you don’t need to wait until deadline day on 31 July.”

The notice comes after it was revealed this month that more than one million tax credit renewal notices with incomplete information were sent to homes by HMRC.

The regulator apologised for the error but said the omissions had not affected calculations for proposed payments.

For more personal tax support, please get in touch with our expert team today.

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