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One week left to report tax credit changes

BRITS receives tax credits with one week left to update HMRC on any changes to working hours or risk of penalties.

A temporary rule means that whoever gets Welfare Those who have worked reduced hours because of Covid do not need to tell the tax officer.

Tax credit is calculated based on your working hours

first

Tax credit is calculated based on your working hoursCredit: Getty

But the rules returned to normal last month on November 25, and changes must be reported within a month.

That gives anyone affected until December 25th to notice HMRC of any change to their circumstances – or they could pay a penalty of hundreds of pounds.

Working tax credit for people who are earning a low income from work and almost two million Brits receive it.

You are entitled to a base amount worth up to £2,005 per year, and you can get extras.

The amount you get is based on the hours you work, so changes after November 25th could increase or decrease your tax credit, depending on the change.

You could be fined £300 i If you don’t report any changes from now on.

And that figure can go up to £60 a day if you don’t pay the initial amount.

Myrtle Lloyd, HMRC general manager for customer service, previously said that “It is important that the person claiming the tax credit is working on updating the HMRC with their working hours if they have decreased and not returned to normal”.

You need to notify HMRC of changes to your job, such as overtime or a change in working hours.

That’s because it can affect how much tax credit you’re entitled to. If you get more than you’re entitled to, you’ll usually have to pay it back.

You can online change report on the government website in the same place you will be able to find your current working tax credit details.

You can also contact HMRC on 0345 300 3900 with questions about tax credits.

If you get tax credits you’re not actually entitled to, you’ll be urged to pay them back, so you should make sure all your details are up to date to avoid any penalties. any other.

You have one month to do this after November 25, so after December 25, 2021, you may incur a penalty for not doing so.

What are working tax credits?

You can no longer apply for a working tax credit – this system has been replaced by a Universal Credit system that you can apply for instead.

Anyone who has received Tax Credits must renew them annually, or miss out on losing thousands of pounds.

The Labor Tax Credit is for people who are earning a low income from work.

There is also a Child Tax Credit for those with children who may or may not be working.

You can claim one or both of the tax credits, and both are aimed at helping lower-income households cover daily necessities.

The payment made by the government to those who qualify, depends on how much you earn, how many hours you work, whether you have children (and their ages).

In most cases, you will have to claim the General Credit because the Tax Credit is being replaced.

However, if you previously claimed the Employment Tax Credit or the Child Tax Credit in the previous tax year, you can still apply.

ou must work a certain number of hours a week to qualify. These limits are:

  • Age 25 to 59 – at least 30 hours
  • Age 60 and up – at least 16 hours
  • Off – at least 16 hours
  • Single with one or more children – at least 16 hours
  • Couples with one or more children – typically, at least 24 hours between you (with one of you working at least 16 hours). There are some exceptions detailed above gov.uk website.

You can use tax credit calculator to check if you are working the correct number of hours.

HMRC is concerned it has paid out up to £3.5 billion in fraud or fraudulent schemes

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https://www.thesun.co.uk/money/17060648/hmrc-tax-credit-changes-rules-covid-report-fine-risk/ One week left to report tax credit changes

Bobby Allyn

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