A complete guide to renewing tax credits
The deadline to renew your tax credits is fast approaching, but completing and returning your renewal paperwork doesn’t need to be taxing! In fact, renewing your tax credits is simpler than you think.
We’ve put together a guide to renewing your tax credits to ensure you have everything you need to submit your application ahead of the 31st July deadline.
Why do I have to renew my tax credits?
By renewing your tax credits, you are ensuring that HMRC has up to date information around your income and personal circumstances. This will ensure you receive the correct amount in tax credits for the year ahead, as well as make sure you were not over or underpaid in the year just gone.
What do I need to renew my tax credits?
If you are claiming child tax credits or working tax credits, you will automatically be sent a renewal pack in the post which includes all the information needed to renew your application. If you have not received your renewal pack by 26th June 2017, or if you need to request a new one, call the tax credit helpline on 0345 300 3900 and HMRC will be able to help you. Your renewal pack will contain two types of documents, and both contain all the information you need to renew your application.
Annual Review Notice (TC603R)
If you receive an annual review notice in a brown envelope which says, ‘check now’, all you need to do is check through the enclosed details and make sure that all your information is correct. If no changes are needed, there’s nothing left do to and your tax credits will be renewed automatically.
If any of your details are incorrect or need updating, you will need to inform the Tax Credit Office by 8pm on 31stJuly.
Annual Declaration (TC603D or TC603D2) and an Annual Review Notice (TC603R)
If your renewal pack is in a white envelope, has a red line across the front page and says, ‘reply now’, you must provide HMRC with up to date information on your circumstances by 8pm on 31st July.
To renew your application, you will need:
- Your National Insurance number.
- Your tax credits renewal number – the 15-digit number on the bottom right of your Annual Declaration.
- Your total income for the last tax year for you and your partner. This includes all relevant income, including second jobs, loans, or inheritances.
- Details of any changes to your circumstances or personal details, such as bank accounts, or your new address if you have moved house in the last year.
How do I renew my tax credits?
Renew your tax credits as early as possible to avoid any problems. You can renew your application by post, by phone or online.
To renew by phone, call the tax credits helpline on 0345 300 3900 (or +44 2890 538 192 if you live outside of the UK).
You can renew by post by returning your tax credit renewal form to:
HMRC – Tax Credit Office
Comben House
Farriers Way,
Netherton
L75 1AX
The easiest way to renew is online, where it takes just 10 minutes to renew your application. You can renew your tax credits online via the gov.uk website
Remember: Take the time to read through your renewal pack carefully and double-check that your details are correct before submitting.
If you are renewing your tax credits any later than 16th July then you should renew by phone or online to ensure your application is received by the Tax Credit Office ahead of the deadline.
How much will I get in tax credits?
HMRC will confirm how much you will receive in tax credits within 8 weeks. Your personal circumstances will dictate how much money you receive in total, however, anyone who qualifies for working tax credits will be entitled to the basic amount of £1,960 for the year 2017-18.
Child tax credits are means tested, which means the amount you receive will be based on how much you earn. Therefore, it’s important to check that the information on your renewal paperwork is correct and that you inform HMRC of any changes as soon as possible.
What happens if I miss the tax credit renewal deadline?
If you miss the deadline to renew your tax credits:
- your payments may stop
- you could be ordered to repay some of the payments you have already been issued
- or, you may even face paying a penalty charge of up to £3,000
If your payments do stop, you will need to contact the Tax Credits Office, explain the situation and provide them with the information they need as soon as possible.
What if my circumstances change ahead of the tax credit renewal period?
It’s important to remember that if your circumstances ever change, you shouldn’t wait until the tax credit renewal period before informing HMRC. You should get in touch and let them know of any changes as soon as possible.
You will need to inform the Tax Credit Office within 30 days if:
- your child leaves home or you have a baby
- your income increases or your working hours change
- you move to a new address
- your bank details change
- there is a change in your living circumstances, for example if you start or stop a relationship, move in with a partner or get married or divorced
- you go abroad for 8 weeks or more or leave the UK permanently
The sooner you complete and return your tax credit renewal paperwork the better, and if you encounter any problems be sure to get in touch with HMRC as soon as possible.
You can receive support for general enquiries through Twitter – simply start your tweet with @HMRCcustomers
