December 7, 2021, 19:42

    Families have two weeks left until major change to working tax credits kicks in

    Families have two weeks left until major change to working tax credits kicks in

    Millions of people whose working patterns have changed in the past year now have a fortnight to inform HMRC to continue receiving working tax credits.

    During the coronavirus crisis, many people's hours changed and millions of those who were furloughed have now returned to work.

    While you don’t need to notify HMRC if your shifts haven’t changed, you will need to update your details if your working hours are now different.

    That’s if you’re in receipt of working tax credits – as the government needs to review your allowance.

    The maximum you can get from the support is £3,240 – but as it's means-tested, the amount you get depends on your circumstances.

    An employee whose hours fell temporarily as a result of the pandemic would have been treated as though they were still working their normal hours.

    The support you're entitled to may have changed
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    Image:
    iStockphoto)

    However from November 25, anyone getting working tax credits who has a change to working hours will need to let HMRC know.

    If your hours have changed, the amount you get could go either up or down.

    That’s because working tax credits are based on your employment hours, so changes after November 25 could mean your tax credits ago up if your shifts have.

    If you don't report any changes after this date, then you could be hit with a £300 fine, which can increase by up to £60 a day if you don't pay it.

    Myrtle Lloyd, HMRC’s director general for customer services, previously said: “We introduced this measure last year to help support working families.

    "It is vital that Working Tax Credit claimants who have benefitted from it update HMRC with their working hours if they have reduced, and they won’t return to their normal level before November 25."

    If you receive working tax credits and you've been made redundant, lost your job or your hours have changed permanently, you'll also need to inform the tax man.

    Remember, if you get more than you're entitled to, you could have to pay the money back later in the form of a demand.

    How do I renew my tax credits?

    If you do need to renew you tax credits, you can do this online, by post or over the phone.

    To do it online, you'll need to log in to your tax credits account and follow the instructions.

    You can renew over the phone by calling HMRC on 0345 300 3900.

    By post, you need to fill in the forms in your renewal pack, and send it to: Tax Credit Office, HM Revenue and Customs, BX9 1LR.

    What happens if I miss the tax credits renewal deadline?

    If you don't report any changes after this date, then you could be hit with a £300 fine, which can increase by up to £60 a day if you don't pay it.

    HMRC could also hit you with a repayments charge if it identifies a large period of overpayments.

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    Sourse: mirror.co.uk

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