Tax creditsRenewing your tax credits
If you are already claiming tax credits (other than just the family element of child tax credit), you'll get a renewal pack each year.
Top tip
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If last year's income was too high for you to be eligible for tax credits but has since dropped, it's still worth putting in a claim. You may receive no award at first but you can then ask for your claim to be reassessed on your current year's income.
Renewal packs
Renewal packs are sent out between April and July each year.
The details you give will be treated as your claim for the current tax year (so currently for 2009-2010). The renewal pack also lets you tell HMRC about your actual income for the previous year (currently for 2008-2009) and is used to finalise your last’s year claim.
Your claim for 2009-2010 is also initially based on the information you give in the renewal pack. Your completed renewal pack must be returned to HMRC by 31 July.
Missing the deadline
Miss the deadline and your tax credit payments will stop
If you miss the deadline your tax credits payments will stop and HMRC might also start to recover any payments already made to you between April and September.
If you don't have accurate figures for your 2008-2009 income you can use estimated figures, but you must return your estimated figures by 31 July and provide the actual figures by 31 January 2010.
If you miss this second deadline, your tax credits award will be finalised using the estimated figures you gave before the first deadline. You will be sent a 'statement of account' and you must complete your renewal within 30 days of that statement.
If you miss that period of grace, HMRC will start to recover tax credit payments made to you since April, and you will have to make a new claim which can only be backdated three months.
However, if you can claim 'good cause' for having missed the deadline and if HMRC accept this, then you must complete your renewal by 31 January.
You can find more information and guidance about renewing your tax credits at the HMRC website.
Chartered Institute of Taxation
Which? is grateful for assistance from the Chartered Institute of Taxation in compiling this guide. For details of the Institute and its work, see www.tax.org.uk
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