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The tax credits renewals deadline has passed. If you missed it, all is not lost but you need to act quickly. Here’s what to do.

Introduction

For the 2015/16 renewals cycle, claimants had until 31 July 2016 to contact HMRC to renew their tax credits awards. This applies to claimants who received an annual declaration form as well as an annual review form.

Each year, tax credits claimants receive a renewal pack from HMRC. The renewals process does two things: firstly, it finalises the claim for the tax year that has just ended (2015/16) and secondly it acts as a claim for the new tax year (2016/17).

Even if you no longer want to claim or think you are no longer entitled, if you claimed tax credits at all during the 2015/16 tax year you should have been included in the renewal exercise to finalise your claim for the 2015/16 tax year.

What to do if you had no contact with HMRC

If you were required to contact HMRC and did not do so by 31 July 2016, either by:

• returning the declaration and review forms by post,
• contacting the helpline, or
• renewing online via GOV.UK.

HMRC will send you a ‘statement of account’ telling you that they have stopped your payments and also asking for all of the tax credits paid since the start of 2016/17 tax year (that is, from 6 April 2016) to be paid back to them.

What you can do now – you have 30 days from the date on your statement of account!

Provided you contact HMRC within 30 days of the date on your statement of account, HMRC will process the renewal and reinstate your 2016/17 claim back to 6 April 2016. If you are self-employed and do not yet have final details for last year, you can give an estimate as long as you either confirm the estimate, or file actual figures, by 31 January 2017.

If you miss the 30-day deadline

If you miss this 30-day deadline, you can only renew and secure your entitlement for the whole of 2016/17 if you:

• complete your renewal by 31 January 2017, and
• have ‘good cause’ for missing the 31 July deadline and the extra 30-day deadline.

If you do not satisfy HMRC that you have good cause for missing the deadlines, HMRC will ask you to repay all payments made to you from the start of the tax year. You will need to make a fresh tax credits claim if you want to carry on receiving tax credits, but that will only be backdated a maximum of 31 days.

LITRG recommendation – contact HMRC as soon as possible

If you have missed the deadline, contact HMRC as soon as possible. Telephone the Tax Credits helpline on 0345 300 3900 (the Textphone number, for those with impaired hearing or speech, is 0345 300 3909).

Useful link

LITRG information on the renewals process