17 April 2018

Tax credit renewals - social security benefits (updated)

The annual tax credits renewal period is now underway and claimants will start receiving their renewal packs from 19 April onwards. HMRC have said they expect all claimants to have received their renewal pack by 22 June 2018.

HMRC have provided the following information to help claimants who have received social security income:

'What benefits to enter at box 2.1 when completing your annual declaration.

There are some benefits tax credits customers often get wrong or miss out completely when doing their renewal. The information below should help them include the correct benefits at box 2.1 on their Tax Credit renewal and make sure they receive the right money.

If they claim/claimed Tax Credits and are now completing their annual declaration and they’ve received any of the following taxable benefits they need to add the amounts they got together and enter the total in box 2.1.

What income do I need to declare in box 2.1? 

These benefits are:

Don’t include any tax credits, Bereavement Support Payment*, Child Benefit, Pension Credits, income-based Jobseekers Allowance, Council Tax reduction (sometimes called Council Tax Support), Universal Credit, Housing Benefit, income related Employment and Support Allowance or non-taxable Income Support.'

*With effect from 6 April 2017 the previous suite of bereavement benefits (Bereavement Payment, Bereavement Allowance and Widowed Parent’s Allowance) were replaced by Bereavement Support Payment (BSP).  This affects those whose spouse or civil partner dies on or after 6 April 2017.  BSP is not taxable and is disregarded for the purposes of tax credits.