Tax Credits
03rd January 2012
Important 31 January 2012 deadline
Remember, claimants who renewed their tax credits at the first deadline, 31 July 2011, but who did so using an estimate of their 2010/11 income, have until 31 January 2012 to supply details of their actual income. For example, a claimant might have used an estimate of income if they were self-employed and did not yet have final 2010/11 accounts in time for 31 July 2011.
There are some good reasons for supplying actual figures rather than just leaving it based on estimates.
First, since many businesses may have reduced profits, or even losses, in the current economic climate. If the final figures for 2010/11 are less than whatever was estimated at July 2011, the claimant should get some extra tax credits.
Second, HMRC might make an enquiry into the award and correct it to the final figures, which might result in an overpayment, depending on the circumstances, and also a penalty for failing to supply the final figures.
The 31 January deadline is also an important one for those people who have not yet renewed their tax credits for 2011/12 – it may still be possible to make the renewal.
Remember, claimants who renewed their tax credits at the first deadline, 31 July 2011, but who did so using an estimate of their 2010/11 income, have until 31 January 2012 to supply details of their actual income. For example, a claimant might have used an estimate of income if they were self-employed and did not yet have final 2010/11 accounts in time for 31 July 2011.
There are some good reasons for supplying actual figures rather than just leaving it based on estimates.
First, since many businesses may have reduced profits, or even losses, in the current economic climate. If the final figures for 2010/11 are less than whatever was estimated at July 2011, the claimant should get some extra tax credits.
Second, HMRC might make an enquiry into the award and correct it to the final figures, which might result in an overpayment, depending on the circumstances, and also a penalty for failing to supply the final figures.
The 31 January deadline is also an important one for those people who have not yet renewed their tax credits for 2011/12 – it may still be possible to make the renewal.
