Tax credits - help your employees renew without delay

22 May 2015

Almost six million customers will renew their tax credits claim this year, so HMRC is asking employers to encourage their staff to renew their tax credits claim accurately, and online, as soon as possible. Tax credits helplines get very busy in June and July, the lead up to the 31 July deadline and if a tax credits claimant renews their claim after this deadline, they risk their payments stopping.

From April, HMRC started issuing renewals packs to almost six million tax credits customers. Last year, 14 per cent of customers, which equates to almost half a million people, lost their tax credits payments because they didn’t renew on time. Although a number of those customers went on to renew their claim after the deadline, it was too late for some to avoid a break in their tax credits payments. As well as suffering financially whilst waiting for their payments to be restored, some people were paid too much money which they have to pay back.

To help customers beat the rush, HMRC have updated the online service which was introduced last year. Customers can complete their renewal and report changes in their circumstances securely, online, at any time of day. Renewing online gives customers the control of entering their online information securely, at a time that suits them, and they can make sure their details are recorded correctly.

HMRC understand it’s important their customers know when their renewal has been received, so if a customer renews online, or sends in a new claim, HMRC will send them a text message to confirm they’ve received it, giving them peace of mind.

How can you help?

If you want to help make sure your employees renew early and receive the correct tax credits, there are some simple things you can do:

· Encourage your employees to check the details on their renewals pack are correct, then beat the rush by renewing online

· The tax credits your employees receive are based on the earnings you tell us about through Real Time Information. You can help us to help them by keeping your Real Time Information accurate and up-to-date

· Adding the message below on your employees payslips from April to July

- Check your details are correct, then renew your tax credits online before the 31 July deadline.

- Beat the rush, renew your tax credits online

- Take care when renewing your tax credits claim – your details might be checked.

· If your company produces a newsletter for employees, you could include this article to remind them to renew their tax credits claim.

- If you’re a tax credits customer, make sure you renew your tax credits claim before the 31 July 2015 deadline or your payments could stop.

Tax credits helplines get very busy in June and July, the lead up to the deadline, so beat the rush by renewing online, securely, at any time of day.

Read your renewals pack carefully when you receive it. It’s important you make sure the details on your claim are right, so that you receive the right amount of tax credits. HMRC make checks, so they could contact us as your employer and ask us to provide details of your hours and earnings.

If you need to complete your renewal, do it without delay to make sure you receive the right amount of tax credits.