The majority of tax credit awards will be renewed automatically in 2020, but for those who are self-employed, who receive taxable social security benefit, or those with any other income, they may need to assess their total household income, and advise HMRC if the figures held are not correct.
Customers who must respond to the annual review pack have until 31 July to do this, otherwise their payments will stop.
Angela Mcdonald, HMRC’s Director General for Customer Services, stated:
“During these uncertain times, while the UK comes together to combat COVID-19, tax credits payments are a vital source of support for millions of people and their families.
If you have been contacted by HMRC to provide your income details, I urge you to contact the department before 31 July.
Don’t leave it too late, get in touch and make sure the information we hold is correct.”
In scenarios where HMRC holds incomplete or incorrect information, customers may be required to pay back any tax credits that they have been overpaid, and potentially even pay a penalty.
It is recommended that customers utilise the HMRC app on their Smartphone, in order to:
Renew tax credits
• •
Check their tax credits payments schedule
• Establish how much they have earned for the year
As always, HMRC has warned customers to be vigilant as there could be a number of scams that take advantage of tax credits renewals. These scams can circulate via text, email or phone and often pledge to provide fake support. The scams frequently mimic HMRC messages in order to make them look more realistic.
If anyone receives a text, email or call claiming to be from HMRC stating that a customer can renew a tax credits award or access financial help and asks for credit card or bank details, it is highly likely that this is a scam.
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Draft New Starter Checklist provided by HMRC 3 July 2020
HMRC has released a draft New Starter Checklist (NSCL) which has been streamlined, and also amended, to reflect the introduction of the new Scottish Student Loan Plan 4, from 6 April 2021.
The form has been developed based on feedback provided from student loan borrowers, who were contacted for their opinions, as the NSCL is completed by new employees who may have a student or postgraduate loan. The relevant teams within HMRC have also been involved in the development of the new form, to ensure that it adheres to Government Digital Service (GDS) standards. Guidance for employers will be published in due course to assist them in the process to follow when they receive a completed NSCL, and to ensure that they deduct the correct Loan or Plan type.
CIPP comment
The Collection of Student Loans Consultation Group would like further feedback on the draft NCSL. The CIPP sits on the consultation group, and would be delighted to cascade the views of payroll professionals in relation to the format of the new form. If you would like to provide any feedback, or have any comments at all, please contact the Policy team, at Policy@cipp.org.uk.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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