Tax credit renewals
There is less than a month to renew tax credit claims for the year ahead. Why is more care needed this time round?
Tax credit claims need to be renewed annually in order for payments to be maintained. The deadline is 31 July each year, and so anyone who hasn’t already sent the paperwork in should be doing so as a matter of urgency. However, this year’s renewal pack contains a prompt to consider switching to Universal Credit (UC) instead.
UC is slowly replacing tax credits. It is no longer possible to make a new claim for tax credits, and by the end of 2024 existing claimants will be moved onto UC. Anyone who is in receipt of tax credits can opt to switch to UC now, and it can be a good idea as it can mean the amount received increases. However, it is essential to ensure this will be the case, as it isn’t possible to switch back. A good starting point is the benefits calculators on GOV.UK, but we strongly recommend consulting an independent adviser, e.g. from the Citizen’s Advice service, before making a decision.
Related Topics
-
Free childcare for company owners?
You’re an owner manager and your daughter is due to start nursery. You understand that working parents can get free childcare but a friend said this isn’t available if you only pay yourself dividends. Is this true and what can you do to qualify?
-
CT61
-
Getting the NI on benefits right
Getting the National Insurance (NI) treatment of employee benefits wrong remains a common issue for employers, particularly where the benefits are payrolled. Errors can lead to underpaid NI and potential compliance action. What should you check?