Following what HMRC are describing as a human error, when this years automatic renewals notices were sent out over 1 million of them had omitted income details.
Further letters have subsequently been sent to those effected but we are now urging anyone receiving tax credits to carefully check their annual renewals before the deadline on July 31st.
If claimants do not notify HMRC of an error in the income figure or estimate then they risk receiving either, a lower tax credit than they are entitled to, or too much, which could be clawed back at a later date unexpectedly. People will only need to inform HMRC is any of the information is wrong.
Victoria Todd the head of the low income tax reform group had the following to say. “Given that this issue is likely to lead to some confusion for claimants – especially as many are not used to the auto-renewals process and the notices are difficult to follow – we urge HMRC to use the full extent of their powers to ensure that no claimant affected by this glitch is disadvantaged at a later date if they do not contact HMRC before 31 July.”
If you require any support in relation to the tax credits, or any other tax matters, do not hesitate to contact us.