Tax credits are state benefits which are generally available to lower income families. However, entitlement to the credits is significantly increased where individuals pay for childcare or suffer a drop in normal levels of income perhaps due to incurring trading losses or redundancy.
Individuals who have already claimed tax credits for 2011/12 have to finalise their provisional award, which would have originally been based on their 2010/11 income, and advise HMRC of any changes in their circumstances for 2012/13. This procedure is known as the renewals process. The deadline for the submission of tax credit renewals is generally 31 July 2012.
Claimants need to be aware that the payment of tax credits will stop at the end of July if they have not renewed their applications by that date. There are significant changes to the income limits and claw back of entitlements for 2012/13 so you may wish to review the HMRC guidance. If you need any advice on tax credits please do get in touch.
Internet link: HMRC tax credit deadlines