Tax credits renewal deadline looming

Where an individual or couple is in receipt of Working Tax Credits and/or Child Tax Credits, they will be unaffected by the UC rollout until they:

• choose to make a claim for UC
• need to claim another benefit that UC has replaced, such as housing benefit; or
• have a change of circumstances that ends the tax credits claim and they need to make a new claim for support.

Until then, the old system of claiming and renewing needs to be followed. In some cases, the renewal will be automatic and the claimant will simply receive a renewal notification. But some claimants need to complete a renewal pack, which is sent out in June each year. In a 1 July press release HMRC stated that just under 500,000 forms were outstanding, and emphasised that these must be completed by 31 July in order to continue receiving payments.

Any changes in circumstances must be reported. However, the press release confirmed that employed claimants do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours for up to eight weeks after the furlough scheme closes. Grant payments received under the Self-Employment Income Support Scheme do need to be reported though.