Tax credit renewals
There is less than a month to renew tax credit claims for the year ahead. Why is more care needed this time round?
Tax credit claims need to be renewed annually in order for payments to be maintained. The deadline is 31 July each year, and so anyone who hasn’t already sent the paperwork in should be doing so as a matter of urgency. However, this year’s renewal pack contains a prompt to consider switching to Universal Credit (UC) instead.
UC is slowly replacing tax credits. It is no longer possible to make a new claim for tax credits, and by the end of 2024 existing claimants will be moved onto UC. Anyone who is in receipt of tax credits can opt to switch to UC now, and it can be a good idea as it can mean the amount received increases. However, it is essential to ensure this will be the case, as it isn’t possible to switch back. A good starting point is the benefits calculators on GOV.UK, but we strongly recommend consulting an independent adviser, e.g. from the Citizen’s Advice service, before making a decision.
Related Topics
-
HMRC checks directors’ loans are paid up
HMRC is writing to agents to check corporation tax returns for previous years are correct as it used to be possible to add a future date for an anticipated loan repayment. What’s the issue and what should you do if your advisor receives a letter?
-
Working from home tax relief scrapped in Budget
Employees who are required to work from home are currently able to claim tax relief at a flat rate of £6 per week. That's changing from 6 April 2026. What's the full story?
-
Government quietly confirms change to key tax deduction
The headlines for individuals at last week's Budget were all about the income tax hikes. But the small print contained confirmation of another important change. What’s the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.