MARTIN Lewis' MoneySavingExpert has warned parents that there are just two days left to renew tax credits.
The deadline is Saturday so there's not long left before you risk losing out on thousands of pounds of cash.
The warning came in the MoneySavingExpert newsletter this week reminding 800,000 parents of how long they have left to check their details are up to date.
If they're not you could lose out on the £3,435 a year that the benefit is worth.
In the newsletter parents are warned they must respond to HMRC before the deadline or risk seeing their payments stop.
Martin added that you could also lose out on the cash if your details are wrong.
Parents were also advised let HMRC know if there are any changes in situation as this is important to update too.
Anyone claiming tax credits has until 31 July to complete the paperwork so they continue to get the money.
There are two types of tax credits and the maximum is £3,240 for the first, working tax credit, and up to £3,435 for the other type, child tax credit.
People on low incomes, who are registered as disabled or have children that are dependent on them are eligible.
How much you get on tax credits can vary depending on your personal situation.
Tax credits are being replaced by Universal Credit, but there are still millions of Brits who have not yet made the switch over.
HM Revenue and Customs (HMRC) has sent out 2.5million renewal packs to tax credit claimants since April – but if you're still to complete yours, here's what you need to do.
Do I need to renew my tax credits?
HMRC sends out renewal packs explaining whether or not you need to renew or update your information.
Those that need to renew will have a letter with a red line on it and the words “reply now” on it.
People that need to check their details will receive a letter from HMRC with a black line and the words “reply now” on it.
If all your details are correct, you don’t need to do anything – your tax credits will automatically be renewed.
If there’s a change in your circumstances, then you’ll need to tell HMRC about it.
The following changes could have an impact on your tax credit payments:
- Living arrangements
- Working hours
- Whether your income has gone up or down
If you haven't received a renewal pack you can contact HMRC.
How do I renew my tax credits?
Your renewal pack will have more information on how to renew, and the information you need to provide.
This will include information on how your circumstances have changed, and the income of you and your partner for the previous tax year, which ran from April 6 2020 to April 5 2021.
You can renew your tax credits three ways: online, by post or over the phone.
To do it online you need to log in to your tax credits account and follow the instruction.
You can renew over the phone by calling HMRC on 0345 300 3900.
By post, you need to sill in the forms in your renewal pack, and send it to: Tax Credit Office, HM Revenue and Customs, BX9 1LR.
What happens if I don’t renew my tax credits?
You have until July 31 to update your tax credits or risk losing your benefits.
If you miss the deadline your tax credits payments will stop.
HMRC will then send you a letter, which will say TC607 on it, and you'll have to pay back the tax credits you’ve received since April 6 this year.
You have to contact them within 30 days and tell them why you missed the deadline and you need to have a "good cause" for doing so.
You could be given until January 31 next year to confirm your details but this isn't guaranteed and is decided on by a case by case basis.
If you don't respond after 30 days, you'll have to pay your tax credits back up to April 6 this year and your payments will stop.
How much do you get on child tax credits?
For child tax credit, the amount you are entitled to depends on when your children were born.
If your kids were born before 6 April 2017, you could get the ‘child element’ of Child Tax Credit for all of them.
You’ll also get the basic amount, known as the ‘family element’.
If any of your children were born on or after 6 April 2017, you could get the child element for up to two of them.
You might get the child element for more children if exceptions apply.
You’ll only get the family element if at least one of your children was born before 6 April 2017.
Here's how much each element is worth:
- Family element: up to £545
- Child element: up to £2,845 per child
- For each disabled child: up to £3,435 (on top of the child element)
- For each severely disabled child: up to £1,390 (on top of the child element and the disabled child element).
For both Working Tax Credit and Child Tax Credits you can use a benefits calculator to find out how much you could get.
How much do you get on working tax credits?
The rates vary depending on your personal situation, but you can get up to £3,240 for working tax credit or up to £3,435 for child tax credit.
For working tax credit, you are entitled to a basic amount worth up to £2,005 a year, and you might get extras on top.
The extra elements include:
- A couple applying together: up to £2,060 a year
- A single parent: up to £2,060 a year
- Working at least 30 hours a week: up to £830 a year
- Disability: up to £3,240 a year
- Severe disability: up to £1,400 a year (usually on top of the disability payment)
- Paying for approved childcare: up to £122.50 (one child) or £210 (two or more children) a week
How do I apply for tax credits?
You can no longer apply for working tax credit.
This is because it has been replaced by the Universal Credit system, which you can apply for instead.
Lots of people have been switched from tax credits to the newer Universal Credit system.
But there are also plenty of people who are still on the old-style system, and the final deadline for being moved across has been pushed back to 2024.
You may be eligible for Universal Credit if:
- You’re on a low income or out of work
- You’re 18 or over (there are some exceptions if you’re 16 to 17)
- You’re under State Pension age (or your partner is)
- You and your partner have £16,000 or less in savings between you
- You live in the UK
Martin has also explained how you could be owed £1,000s in packaged bank account fees.
Plus the money-saving guru says millions of low income families are wasting cash with prepaid cards – and we explain how to avoid fees.
In the midst of the "pingdemic" Martin has also before reminded parents to claim the £500 payment they could be eligible for if kids are sent home from school.
Source: Read Full Article