27 April 2017
Tax Credit renewals exercise 2017
HMRC have started to send out tax credit renewal packs to claimants who claimed tax credits during the 2016/2017 tax year.
The tax credit renewal period runs from 6 April 2017 to 31 July 2017 (in most cases). The tax credit renewal exercise allows HMRC to finalise entitlement for the tax year just ended (2016/2017) and acts as a new claim for the current tax year (2017/2018).
Claimants should read the information in their renewal packs, check all the information on the renewal notice to make sure it is correct and up to date and follow the instructions carefully.
Claimants who receive an auto-renewal pack will have their tax credits renewed automatically and only need to contact HMRC by 31 July 2017 if there are changes or corrections to the information to report.
HMRC may use Real Time Information from the tax system to pre-populate renewals forms with employed earnings and pension income. Claimants should check these figures carefully as even if they are accurate (based on the tax records) they may not be the correct figure for tax credits as various deductions can be made from income for tax credit purposes that are not allowable for tax. This is particularly important for auto-renewal cases as if the claimant does not contact HMRC, the income figure shown will be used. See our main website for more information on these deductions.
All other claimants should complete their renewal declaration by 31 July 2017, or the date specified in their renewal pack if there has been a delay and HMRC have quoted a later deadline date for reply.
Claimants can complete the renewals/finalisation process:
- On-line via the GOV.UK website, using HMRC’s tax credit digital service called ‘Manage your tax credits’. This is accessed either by going through the personal tax account or directly to ‘Manage your tax credits’, or
- Using the HMRC app, free to download, or
- By telephone, calling HMRC’s tax credits helpline 0345 300 3900 (textphone 0345 300 3909), or
- By post, to:
HMRC – Tax Credit Office
Between 6 April and whenever HMRC process the renewal, HMRC tax credit payments continue as provisional payments until the new award is set-up. Claimants should be aware that HMRC may vary, and in some cases stop, provisional payments if they have information which suggests the new award amount should be lower, for example if they have payroll information from a claimant’s employer which indicates the annual income figure has risen.
Claimants whose tax credit award ended completely during the 2016/2017, should still comply with the information and instructions in the renewal pack they receive so that HMRC can properly finalise their tax credit entitlement for the 2016/2017 tax year even though the claim is not going to be renewed for 2017/2018.
Claimants who start to claim Universal Credit during the renewal period (ie before their tax credit award for 2017/2018 is formally set-up as a result of renewal) may receive their in-year finalisation paperwork for the period from 6 April 2017 as well as their renewal pack for 2016/2017 (which also acts as the initial claim for 2017/18). Claimants can complete both declarations at the same time by telephone or post but cannot complete their in-year finalisation declaration on-line. We are currently adding more information to our main website about in-year finalisation during the renewals period.
You can read more about tax credit renewal in our renewals section.
You can read more about in-year finalisation in our universal credit section.