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LITRG looks at tax, tax credits and related issues to think about in September.

Introduction

In this month’s reminder article, LITRG looks at some topical issues under these headings:

1. Tax and Self-Assessment
2. Tax credits
3. State benefits (including National Minimum Wage)

1. Tax and Self-Assessment

Get to work on your 2010/11 tax return – paper filers only have two months left!

Those sending in a 2010/11 paper Self-Assessment return have to do so by 31 October 2011, but if you are filing online you have until 31 January 2012. Whether filing on paper or online, the sooner you get to work on your return, the better.

Not received a tax return but think you need to fill one in? Act by 5 October

Self-Assessment tax returns (or a notice to complete one) for the year to 5 April 2011 would normally have been issued in April. If you have not received one, but you think you might have tax to pay for 2010/11 (for example, if you have a new source of income in the year such as rent from letting out a property), you must tell HMRC. The deadline for telling them is 5 October 2011.

Telephone the Self-Assessment helpline on 0845 900 0444. For those with hearing or speech impairment, the Text Relay access code is 18001, or Textphone 0845 302 1408.

Delayed Self-Assessment statements

Recently, HMRC confirmed that there were some delays in sending out this year’s Self Assessment (SA) statements showing tax payments due on 31 July 2011. They then said that if your statement was delayed, you had an extra 30 days from receiving the statement to pay before being charged interest.

In an update to that statement, HMRC have now said they will only charge interest if you received your statement in August and haven’t paid by 27 September.

Have you been charged another 5% for late payment of 2009/10 tax?

If you still hadn’t paid tax you owed for 2009/10 by 31 July 2011, you might by now have received a notice from HMRC stating that you need to pay another 5% surcharge as a penalty for late payment. You have 30 days to appeal if you think that you should not have been charged the penalty or if you had a reasonable excuse for delayed payment.

If you had entered into a Time to Pay arrangement with HMRC on or before 31 July 2011, agreeing to pay late 2009/10 tax by instalments, you should not have received a 5% surcharge. If you have received such a notice in error, make sure you contact HMRC’s Payment Helpline about it as soon as possible.

Staying on at school? Going to university?

Students should have a look at LITRG’s August article (see useful links below) for some reminders of things to consider at this time of year.

2. Tax credits

Did you miss the 31 July renewal deadline?

Read the section in LITRG’s August article (see useful links below) advising you what to do. If you have been notified of a tax credits overpayment, you might also find it helpful to read the LITRG guide.  

Childcare costs – any changes to consider?

LITRG’s ‘School’s out’ article gave you information about claiming the childcare element of Working Tax Credit and whether changes in childcare costs over the summer holidays would have any impact. Similar considerations could apply now, for example if your children are starting school or are now eligible for a free nursery place and your childcare costs are changing as a result.

3. State benefits (including National Minimum Wage)

Born before 6 January 1951? Check if you can claim the winter fuel allowance

If you were born before 6 January 1951 and meet the other qualifying criteria, you can claim an extra payment towards your winter fuel bills this year of between £100 and £200. The exact amount depends on your individual circumstances.

More detail, including how to claim, is given on the Directgov website (see useful links below).

The payment is tax-free, so make sure you don’t include it with your state pension figure or other taxable state benefits on your tax return if you need to complete one.

Are you being paid enough? Check your National Minimum Wage entitlement

From 1 October, National Minimum Wage rates increase.

The rates from 1 October 2011 will be:

• £6.08per hour for low paid workers aged 21 and over (increased from £5.93);
• £4.98 per hour for 18 to 20 year-olds (increased from £4.92); and
• £3.68 per hour for those under 18 who are no longer of compulsory school age – broadly 16 to 17 year olds but exact rules differ for England and Wales, Northern Ireland and Scotland (increased from £3.64).

The Government has also increased the apprentice minimum wage of to £2.60 (increased from £2.50) per hour will be introduced for those apprentices who are either:

• • under 19; or
• • aged 19 and over but in the first year of their apprenticeship.

The Directgov website provides more information on entitlement to the National Minimum Wage and how to work out whether you are being paid enough.

Useful links

Telephoning HMRC? Keep a careful note

LITRG guidance on appeals and reasonable excuse

HMRC guidance on ‘time to pay’ arrangements

More on student issues and tax credits in LITRG’s August article

Winter Fuel Payment – Directgov information

National Minimum Wage - Directgov information