Don’t forget to renew your tax credits!
We’ve all been there, haven’t we? A letter comes through the door reminding you that you need to do something but you have a month or two before you actually ‘need’ to do it, so it gets put to one side or perhaps even placed in a drawer or filing box and you get on with your day. Before you know it a month has gone by and somewhere in the middle of working hard, being a parent or just trying to keep up with your daily routine you manage to forget all about that letter!
Well, if this has happened to you with your tax credit renewal reminder letter then it is vital that you route it out today, get on the phone to the tax credits office or hop online at https://www.gov.uk/renewtaxcredits and take care of your renewal today or you will be running the real risk of your tax credits payments being stopped. The deadline is actually the 31st of July which is tomorrow but I’m reluctant to even say that as who knows what might happen tomorrow to prevent you from getting your renewal in, so it would be wise to take care of it today.
A little reminder about the process for those who are self-employed
If you are new to the tax credits system or are newly self-employed then you may be a little confused about what figures you need to submit to the tax credits office in your renewal. Do you submit your net profit or your gross profit for example? Which year’s profit figures am I supposed to be submitting?
When it comes your profit the tax credits office are looking for your net profit figure, the figure after all of your other business expenses have been deducted. In regards to which year’s figures they are looking for they will want to know your net profit – or your estimated net profit if you have not yet submitted your tax return – up until the end of your last tax year. For most of us then this will be the net profit between the 6th of April 2013 and the 5th of April 2014. If you do submit an estimated figure then you will need to call up the tax credits office by the 31st of January 2015 to give them your actual figures once your full tax return has been submitted and the figures have therefore been finalised.
If you make any charitable donations via gift aid or you have other sources of income that you might need to declare then more information can be found here – https://www.gov.uk/tax-credits-working-out-income#self-employed-people
Another thing to consider when you are submitting estimated figures is to err on the side of caution. If you submit an estimated figure that turns out to be much lower than your actual figure then you might end up having to repay a substantial amount of money.
Please note – All of the information in this post is only valid for your 2014 tax credits renewal. We will update this post with any new information relevant for 2015 as and when it becomes available.
Set aside a reasonable amount of time to take care of your renewal
If you are going to be taking care of your renewal over the phone then be sure to set aside a reasonable amount of time from your day to be able to do this. There will likely be a lot of people calling in over the next two days all frantically trying to get their renewals in, so the lines will probably be mighty busy and you may be on hold for quite some time before you get through. Don’t give up though. This is one of those deadlines that you really have to stick to in order to avoid having your finances affected.