Employers are being reminded by HM Revenue & Customs (HMRC) to encourage staff to renew their tax credit claims as soon as possible to beat the mid-summer rush.
HMRC say that June and July are the two busiest months for processing claims – reporting that employees block up tax credit helplines in their frenzied attempts to renew before the 31 July cut-off date.
Failure to renew before this date will mean that payments are stopped altogether.
However, in 2015, HMRC launched a new service allowing people to renew their claims online, providing they have received their renewals pack and have all relevant information to hand.
As part of HMRC’s controversial Making Tax Digital (MTD) initiative, customers using the online tax credits service will now be able to access a dizzying range of other services online, including managing future payments and their own online-banking style Personal Tax Account.
Renewing online can be complicated depending on employee circumstances, and the chances are that HMRC’s services will become increasingly bewildering in coming months, as the little-publicised MTD changes start to take effect.
Businesses are urged to advise their employees to renew now, before MTD takes over, and consult the relevant experts and financial advisors to avoid any complications in assisting their employees.
At Moore Thompson, we can offer support on renewing tax credits, advising your employees, and any other payroll responsibilities. For more information about how we could help you, please contact us.