Don’t Miss the Boat When it Comes to Tax Credits

19 May 2012

Everyone loves getting something for free - even receiving a simple sample whilst shopping can go a long way to brighten anyone's day.

And while most people will agree that in life 'nothing ever comes for free' there is one helping hand which should never be ignored: tax credits.

There are two types of tax credits which people could be entitled to and both are designed to help make life a little more comfortable for those eligible. Adults responsible for a child may qualify for Child Tax Credit and anyone who works, but is on a low income, might qualify for Working Tax Credit.

How much people can claim really does depend on their personal circumstances as there are so many variables which could affect payments. The best way to check entitlements is to use the online tax credits calculator on the HM Revenue and Customs website.

For those who already claim tax credits, unfortunately it is that time again, as millions of review forms are being posted across the country and must be returned by the end of July.

Most people's instant reaction to receiving these forms is to add it to their 'jobs to do list' and aim to deal with it later.

However, by completing and returning the forms as quickly as possible means it won't slip down the list of priorities and it will be processed much quicker. A major bugbear for many is the tax credit hotline, which can become extremely busy as the deadline approaches, so completing the forms early shouldn't mean being put on hold for hours if there is a query.   

Anyone who misses the July deadline may find their payments suddenly stop or, worse still, may be asked to make some repayments - both can make life much harder for people who rely on this money.

It is now more important, than ever, to keep HM Revenue and Customs up to date in order to prevent any under or overpayment of benefits. Many people's circumstances will have changed over the previous 12 months which will mean they could be entitled to more or less allowances.

If the latter is the case and claimants have not passed on details of any changes they may find themselves being forced to pay back any overpayments they've received  regardless of whether they still have the money or not. Anyone who does find themselves with an unexpected tax bill should seek financial advice as soon as possible.

Northumberland residents concerned about their financial situation should contact DAWN Advice for free support and legal advice through the county's advice line on 0844 4111 309.