Tax credits how long to process 2010

The number will appear immediately and claimants should keep a note of this number somewhere safe. To use the system they will also need:. Claimants will need to answer some additional security questions and will be given some options to help confirm their identity. For example they may be asked about information on their P60, tax credit payments, bank accounts and so on. There is a save and return function so that claimants no longer have to complete their on-line renewal in one go. Claimants should see a summary screen at the end of the process and will receive an email from HMRC within 24 hours of submitting their renewal to confirm that their information and declaration has been received.

Claimants cannot reply to this confirmation email and the email address cannot accept incoming emails. Sometimes, HMRC will contact claimants who have been sent reply-required renewal packs but have not yet completed their renewal to remind them to complete their renewal. These reminders will be in the form of SMS text messages but will not include any personal information about the tax credit claim. See our contacting HMRC page for more information.

So long as renewal papers are returned by the deadlines shown below, claims are treated as made for the new tax year and are backdated to 6 April. While the renewal process is going on, HMRC will continue pay on the basis of the last known income and circumstances for the tax year just ended.

These run-on payments are known technically as provisional payments. When the renewal process is complete, provisional payments are replaced by payments under an initial award for the new tax year.

See the information in the claims starting section. The bringing forward of the renewal deadline was part of a series of measures intended to reduce the volume of overpayment in the system.

The important thing is to return an estimate by that date. If an estimate is given, it must be confirmed, or actual figures supplied, by 31 January which is also the online filing deadline for self-assessment. If the claimant does not renew either by sending the papers to HMRC or renewing via the telephone or online by 31 July or the date on their renewal papers if different then the award may be terminated. In addition, any other overpayments that were being recovered from their ongoing award will switch to direct recovery when their award is terminated for non-renewal.

If HMRC terminate the award for failing to renew and consequently stop all payments regulations allow the claim to be restored providing the claimant renews within 30 days from the date on the notice telling them that their payments are to be stopped technically called the Statement of Account. Outside of this 30 day period, the claim can only be restored if the claimant can show that there was 'good cause' for failing to renew, so long as the renewal papers are returned by the later deadline of 31 January Missing the deadline can also mean the award for the previous year is finalised only using information HMRC already hold and not include any additional or updated information from the claimant.

Where this happens and claimants disagree with the decision about their tax credits, they will normally need to rely on their appeal rights on the finalised decision and request a mandatory reconsideration to start the appeals process. Claimants need to be aware of the timeframes for appeals. This also applies where claimants do not have their actual income figure available by 31 July and instead need HMRC to use an estimate of their income for the renewal and finalisation process.

If claimants do not provide their actual income figure by the 2SD deadline, HMRC will make that final decision using the estimated figure they already hold. Again, claimants who disagree with this decision must rely on their appeal rights to challenge the decision. Now that UC is available across the UK, HMRC state that most people can no longer make a brand new claim for tax credits and will be expected to claim UC or pension credit instead for ongoing support.

See our making a claim section for more information about this. The legislation Regulation 6 of SI. This will be for the full tax year if the person has not claimed UC, or up until the day before the UC award starts if they have already claimed.

If the tax credit claimant cannot show they had good cause for their late renewal, they will not be able to make a brand new claim for tax credits unless they fall into one of the very narrow exceptions. You can read more about UC in the UC section.

If the claim cannot be restored because there was no good cause or if good cause was present the renewal was not done before the 31st January , all provisional payments paid from 6 April will be treated as overpaid.

As mentioned above, it is vital to return renewal papers when required to do so. Claimants should particularly beware of using non-renewal as a tool to pull out of the tax credits system unless they have been invited to do so by letter from HMRC.

In addition they will no longer be able to repay any overpayment by reduction of an ongoing award, as there will be no ongoing award to reduce. Instead direct recovery will be commenced. Teresa Perchard, Citizens Advice director of policy, said: "The reality is that the proposed changes to personal allowances will be of little benefit to working families on the lowest incomes who live in rented accommodation.

Although these families are in work, they are also likely to be in receipt of housing and council tax benefits and since both are means tested, any rise in take-home pay will result in a loss of entitlement to these benefits.

The changes will make life more difficult for young mothers, many of whom are already in deep debt, said uSwitch. Ann Robinson, policy director, said: "These cuts will place family finances under even more pressure at a vulnerable time. The decisions the government has taken today will make it a lot harder for a mother to have the choice of staying at home. The child element is paid for each child in a family. Osborne surprised opposition politicians and commentators by announcing that the amount of child benefit — one of the few remaining non-means-tested benefits mothers receive — will be frozen at its current level for the next three years.

It had been widely anticipated that the benefit would be either taxed or means tested. The grant was introduced in April last year to help ensure all mothers-to-be had funds available to help them eat well in the run-up to giving birth, so reducing infant mortality rates. Our Tax Guides feature the latest up-to-date tax information and guidance.

From tomorrow, the already very complicated tax credits system is undergoing more changes. Overall this will result in a second round of tax credits cuts, although not everyone will lose out. This article explains those changes in more detail. Several changes to the tax credits system were announced in the June Emergency Budget and the October Comprehensive Spending Review. Some of those changes started from April , with others due to start from tomorrow 6 April The basic, hour and couple elements of working tax credit WTC remain frozen at their level.

This applies even to those who have not received it for the full 12 months. The exception to this is if they are responsible for children, aged 60 or over or qualify for the disability element of WTC in which case they may continue to qualify by working at least 16 or 24 hours depending on their circumstances.

Perhaps the biggest change will be for couples with children who have up to now received WTC by working at least 16 hours a week. From 6 April they are required to work at least 24 hours between them, with one person working at least 16 hours. There are some important exceptions to this new rule. Couples with children can continue getting WTC by working at least 16 hours a week if the person who is working is aged 60 or over or entitled to the disability element of WTC.

In addition, there are four exceptions to the hour requirement. If one partner works 16 hours a week and the other is:. However, their payments will stop from 6 April unless they contact HMRC, via the tax credits helpline, to tell them that one of these exceptions applies.

The child element of child tax credit CTC increases by 5. Similarly generous increases apply to the amounts for disabled and severely disabled children. For some people, the second income threshold was higher than this. For it is removed altogether. This means that as soon as income reaches the point at which all other elements of tax credits have been withdrawn by the 41p in the pound taper, the family element also starts to be withdrawn at the same rate.

However, those with larger families could still be entitled to some payment, as could those who spend a lot on formal childcare or who have children with disabilities. We explain in another article why this is not the case and why it only applies to those with one child who claim no childcare costs and have no disabilities. The income cut-off is different for everyone and those with larger families, who spend a lot on formal childcare or who have members entitled to the various disability elements, could still be entitled to some payment at much higher income levels.

Their awards are now:. Another controversial and complicated change is the new "disregard" for falls in income. HMRC has always had the power to fix a disregard for falls in income, but this is the first time they will have used that power.

Finally, when making an initial claim or notifying a change of circumstances that increases an award such as the birth of a child or a material increase in childcare costs , from April claimants are only able to backdate the increase in their entitlement by one month, not three months as hitherto. This means that claimants now only have one month to make a claim or report a beneficial change of circumstances if they are not to lose out on any entitlement. Skip to main content.

Home Latest News News Tax credits changes in - the facts. Tax credits changes in - the facts. Published on 5 April There are two main points that people should be aware of: There is no one income cut-off point for tax credits.