The Chartered Institute of Taxation (CIOT) has alerted the public to the fast-approaching 30 September Tax Credits deadline. If tax credit renewal papers are not returned by 30 September, payments will stop (unless claimants are on the lower family only element). If the papers are returned, payments will continue while they are being processed.
Anne Redston, Chair of the Personal Taxes Sub-Committee at the CIOT, said:
“If this brown envelope is behind the bread bin, find it now. If you don’t return your renewal form by 30 September, your payments will stop – and, worse still, you may be required to return the money you have received since April.
“Tax credits form a significant addition to many people’s income – losing them overnight could spell financial disaster.
"An exception has, however, been made for those who are on the lower “family only” element – they are not required to return details unless their income has changed substantially, or there have been changes in their personal circumstances.”
Claimants have also until 30 September to confirm their income for the year to April 2004, so the Revenue can check the payments already made. When they do this they should remember to deduct from their income (a) Any payments to charities under Gift Aid, and (b) Any allowable employment expenses (such as business mileage not reimbursed). Anne said:
“When the tax credit system began, the claim forms were incomplete. They did not say that Gift Aid payments should be deducted. Neither did they list all allowable employment expenses. As a result, claimants may not have received all the tax credits to which they are entitled.
“Claimants should tell the Revenue about these payments now so that their finalised awards for 2003/04 are correct, and they receive the right amount of tax credits going forward. Further information on the amounts deductible is available in the 2004 tax credit claim form notes.”
Sorrelle Ferguson, Communications Department: 020 7245 4122