If you receive tax credits, you’re urged to renew your annual claim ahead of today’s deadline to ensure you don’t miss out on money you’re entitled to.
Hundreds of thousands of renewal packs were sent out from May, with the final date to submit a claim falling on 31 July each year.
If you miss the deadline, there is a risk your payments will come to a halt.
Therefore, if your notice includes a red stripe, you need to contact HMRC to renew your tax credits.
You’ll need to let it know if you’ve had any life changes that could affect your claim, such as relationship changes (moving in with a new partner or getting married or divorced), children leaving home or a change in working hours.
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If you received a letter with a black stripe, your notice will be renewed without any further action needing to be taken. The pack will say how much your payment will be, known as an “award notice”.
For families missing the 31 July deadline, you can’t claim for tax credits, but there may be alternative benefits you’re eligible for, such as Universal Credit or Pension Credit. If you miss the deadline by more than 30 days, you may be able to restore your claim if there is a reason for the delay deemed to be a “good cause” by HMRC.
Self-employed payment on account
If you’re self-employed and your tax liability is over £1,000, you will have to pay on account twice each year.
For individuals submitting self-assessment for the 2023/24 tax year, payments are split between January and July, with a third “balancing payment” to even out any over- or under-payments.
So, you pay 50% of the previous year’s tax liability in advance in January – first payment on account – then 50% for the second payment by midnight on 31 July.
If you’ve already submitted your 2023/24 tax return, your second payment on account may or may not become payable, but check with your tax adviser.
Come January 2025, you then need to pay any outstanding amount owed, as well as the first payment on account for the following tax year (2024/25).
Pauline Green, head of product compliance and programmes at Intuit QuickBooks UK, said: “If you do not meet the 31 July deadline and it remains unpaid for 30 days or more, then penalties may be applied.
“If you are struggling to make the payment, contact HMRC as soon as possible. It may allow you to have a payment plan. It will look at your entire financial position and if there is genuine hardship, it will calculate a monthly repayment plan.”
Related: Guide on why it pays to file your tax return early and Self-employed Class 4 National Insurance Contributions (NICs) fall to 6%.
