There have been a few constituents who have recently got in touch with my office to tell me about problems they are facing when they come to file their annual tax credit renewal, especially those who will no longer be claiming tax credits.
If you are no longer going to claim tax credits you may think it is as easy as just not returning your annual declaration. However many people are falling into this trap and having to re-pay large sums of miss paid tax credits to HMRC.
Everyone should be well aware by now that your annual tax credit renewal must be in by the 31st of July however, even if you are no longer entitled to tax credits, you have to get your form back to HMRC by April otherwise you will be wrongly paid for June and July before your credits stop being paid automatically. With renewal forms being sent out between April and June this leaves claimants with little time to explain their circumstances and ultimately leads to overpayment.
This flaw in the system is leading to many people over claiming and leading to HMRC spending more money in order to recoup the tax credits that have been wrongly paid out.
Surly the wise thing to do would be to make it perfectly clear that if you are no longer going to be entitled to any kind of tax credit you must get your form in before the tax year is over in April to ensure you will not be over paid.
I am looking to obtain a better understanding of how many people this has affected before I raise it in Westminster. Therefore, if this has affected you please get in touch with my office on 01475 721 877 or you can visit us at 20 Crawfurd Street, Greenock, Inverclyde, PA15 1LJ.
Picture from HMRC.