Tax credits renewal deadline looming
Universal Credit (UC) is replacing the old tax credits system slowly but surely. However, tax credits are still applicable to existing claimants. Why is July a crucial month for recipients?
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Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
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What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
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Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
Where an individual or couple is in receipt of Working Tax Credits and/or Child Tax Credits, they will be unaffected by the UC rollout until they:
- choose to make a claim for UC
- need to claim another benefit that UC has replaced, such as housing benefit; or
- have a change of circumstances that ends the tax credits claim and they need to make a new claim for support.
Until then, the old system of claiming and renewing needs to be followed. In some cases, the renewal will be automatic and the claimant will simply receive a renewal notification. But some claimants need to complete a renewal pack, which is sent out in June each year. In a 1 July press release HMRC stated that just under 500,000 forms were outstanding, and emphasised that these must be completed by 31 July in order to continue receiving payments.
Any changes in circumstances must be reported. However, the press release confirmed that employed claimants do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours for up to eight weeks after the furlough scheme closes. Grant payments received under the Self-Employment Income Support Scheme do need to be reported though.
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