Annual review
Following last month’s e-bulletin news about the annual review, the Revenue has confirmed another change. At the end of each tax year, most tax credit claimants are required to make an annual declaration, stating their income for the year that has just ended. This finalises the old claim and serves as a renewal of the tax credits claim for the new tax year. The deadline for making the annual declaration for 2010/11 was 31 July 2011. Claimants who missed this deadline should receive a notice stating that their payments have stopped and their claim has been terminated. The rules allow for the claim to be restored if the claimant makes the declaration within 30 days of receiving this notice. The Revenue has confirmed that it will extend the period allowed to 60 days, as was the case last year. This was mentioned in the consultation group minutes in March and has recently been confirmed by e-mail to an e-bulletin reader.
The Revenue has also announced that it will do all it can to help people affected by the riots in England, for example if records have been lost or destroyed. It will review any penalties or charges that would normally be triggered by missed deadlines. A dedicated helpline – 0845 366 1207 – has been set up to help businesses and individuals adversely affected by the recent civil disorder.
Read the Revenue’s announcement here.
Postcode
The Revenue has announced that it now has one central postcode for the main Tax Credit Office address in Preston; PR1 4AT. It is in the process of updating its letters and website. Advisers are asked to double-check any postal addresses for the Tax Credit Office to make sure they are updated with the postcode PR1 4AT.
Note that the definition of an appropriate office in the Tax Credits (Claims and Notifications) Regulations is Comben House, Farriers Way, Netherton, Merseyside or any other office specified in writing by the Revenue. This has also been the address on the return envelope supplied with tax credit claim forms. However, there appear to have been several different ‘L’ (Liverpool) postcodes for this address.
Q & A: What does universal credit mean for tax credits?
The Welfare Reform Bill currently going through Parliament provides for tax credits to be abolished and replaced by a new universal credit. This will be a new system of means-tested support for people in or out of work, and will include amounts for children, housing costs and disability. However, universal credit will not be introduced until October 2013 at the earliest, and there will be a gradual transfer of old claimants to the new system, so tax credits are not going away for some time yet. The main implications for tax credits are:
- No new claims for tax credits from April 2014
- Transfer of existing tax credits claimants to universal credit by October 2017
- Similar rules expected on childcare, single/couple claims, overpayments and penalties
- A new role for HMRC in providing ‘real-time’ earnings information
Watch this space for more information on universal credit coming soon.