The annual declaration deadline for Tax Credits is 31 July 2011, ACCA (the Association of Chartered Accountants) reminds claimants today.
But the accountancy body’s head of taxation, Chas Roy-Chowdhury, says that the new tax bands and changes to the income limits for Child Tax Credits could complicate the renewal process.
Chas Roy-Chowdhury says: “Claims for tax credits can be automatically renewed, but it is likely that many who are eligible for this benefit will have to declare the changes that have happened to their income as a result of the change in tax bands at start of the new tax year in April 2011. Some existing claimants may discover that they are no longer eligible for the tax credits they currently claim.”
In June last year, the government announced that the combined income limit threshold for Child Tax Credit decreased from £50,000 to £40,000 from 6 April 2011. This change now means if a claimant’s income is over the new limit, their basic Child Tax Credit payment of £545 will be reduced, by 41p in the pound.
The government also announced that the maximum amount of the child element of Child Tax Credit was to increase from £2,300 to £2,555. The income disregard rate for Child Tax Credits has also decreased, from £25,000 to £10,000.
Chas Roy-Chowdhury says: “If a claim is not completed on time or correctly, a claimant for Child Tax Credit or Working Tax Credit could end up having to pay back money they thought may have been theirs based on previous claims. The responsibility is with the claimant to make sure automatic claim renewals are based on the right information. Claimants need to make sure that the Tax Credit Office is notified immediately – and ahead of 31 July - if there are any changes in circumstances, or if income is different to what is shown in the Annual Review notice, or if there are mistakes in the notice.”
Annual declaration packs for tax credits are issued by HMRC between April and the end of June 2011. If a pack hasn’t reached a claimant by 15 June, then they should call the Tax Credits Helpline: 0845 300 3900.
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For further information, please contact:
Nick Cosgrove, ACCA Newsroom
+44 (0)20 7059 5989
+44 (0)7963 496144
Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 147,000 members and 424,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.