TAX CREDITS - 10.07.2009

Help with your tax credits

Confusing paperwork

The deadline for tax credits (TC) is approaching and all the publicity says that if you don’t act by July 31 your payment will stop. But every year the the paperwork changes, and this year is no exception. Some people have received forms that suggest they don’t need to do anything. But many are worried that if they don’t, they’ll lose out. So here’s our need-to-know guide to renewing your tax credits claim - in plain English.

One or two forms

If you made a TC claim for 2008/9, you should have received a so-called tax credits “renewal pack” by now. If you haven’t, see our advice below. It will include several documents, but the important ones are titled:

1. “Annual Review”.

2. “Annual Declaration”.

Tip 1. If you haven’t received the Annual Declaration notice, don’t panic, it means that the Taxman doesn’t need it. He refers to these cases as “automatic renewals”. All you need to do is check the information about your circumstances that he’s printed on the form. If they’re correct, then you really don’t have to do anything more. If they’re incorrect, see our further advice below.

Tip 2. If you haven’t received a renewal pack at all, or can’t find it, there’s still time. Telephone the Tax Credits Helpline on 0845 300 3900.

Both forms received

If you’ve received both the Annual Review and Annual Declaration you must:

• complete the Annual Declaration with your income details for 2008/9 (not your income for the current year)

• check the information on the Annual Review notice. If there’s something wrong, see our advice below.

Tip. If you don’t know all your income details for 2008/9, don’t delay in completing the Annual Declaration. You’re allowed to enter estimates, but you must tell the Taxman the correct figures no later than January 31 2010.

Annual review correct

If the information the Taxman has printed on the Annual Review is correct, and you’ve filled in the details of your income on the Annual Declaration, you have two options:

1. Put the Annual Declaration into the envelope provided and post it back to the Taxman. Or;

2. Provide the information by telephone using the Tax Credits Helpline on 0845 300 3900.

Annual review incorrect

If the information printed on the Annual Review is incorrect, telephone the helpline and report the change(s). While you’re on the phone you might as well notify them of the information you’ve put on your Annual Declaration. You’ve then completed the renewal process. Or you can post it back to them.

Tip. When phoning the TC helpline have your NI number to hand; this will cut down the time you’re left hanging on the telephone. For future reference always make a note of the date, time and name of the person you speak to.