Her Majesty´s Revenue & Customs (HMRC) do not mix their words when it comes to reclaiming taxes. As the 31st July deadline approaches for UK residents to claim back working tax credits, the tax agency has warned anybody that misses the deadline will not be able to recover taxes and if you fill your claim form out incorrectly (or fraudulently), you will receive a penalty fine of up to £3,000.
Tax credits are intended to help low-income families who work more than 30-hours a week cover the costs of everyday needs together with childcare fees. The tax agency has sent Tax credit renewal packs to over 5.8 million people in the UK. If you did not receive one, but think you may be entitled to tax credits you must contact HMRC Tax Credits helpline on 0345 300 3900 to request a claim form. You cannot apply online or download a claims form – that would be too easy!
Who can claim Tax Credits?
If you work, but earn a low income you may be entitled to claim working tax credits, but you are more likely to qualify if you have children. The criteria is as follows:
- You are aged at least 16
- if you are single and work at least 16 hours a week
- if you’re a couple, your joint paid working hours are at least 24 a week, with one of you working at least 16 hours a week
- one of you is aged 60 or over and working at least 16 hours a week
- one of you is disabled and working at least 16 hours a week
- one of you works at least 16 hours a week, and the other is entitled to Carer’s Allowance
- one of you works at least 16 hours a week, and the other is ‘incapacitated’, an in-patient in hospital, or in prison
If you’re not responsible for children, you may still be entitled to Working Tax Credit providing you fulfil the qualifying criteria:
- you’re aged 25 or over and work at least 30 hours a week
- you are aged over 16 and have a disability and work of at least 16 hours a week
- you’re aged 60 or over and do paid work of at least 16 hours a week
How to claim working tax credits
If you have not claimed working tax credits before you need to contact HMRC and request a form. They will send you one by post, but it takes 2 weeks to arrive. To request a form call the HMRC helpline on 0345 300 3900. Before you phone have the following information to hand.
- your National Insurance number
- your income for the last tax year
- details of any benefits you get
- details of any childcare payments
- the number of hours you work a week
The most concerning aspect of claiming working tax credits is if you make a mistake on the claims form because you did not pay due care and attention you can be fined up to £3,000. That is a harsh fine for a low-income family. To avoid receiving a harsh fine call Taxaccolega, a low fixed fee accountant in London, on 08000 235 234 and we will help you fill your tax credits form correctly.