Your Tax Credits – are you sure you have claimed correctly?
Tax Credits Claim – is your’s correct?
Apparently, many applications for Tax Credits have been made incorrectly and as a result, claimants are not collecting the full amount to which they are entitled.
According to a recent announcement by HMRC, many parents do not realise that they need to deduct any statutory parental pay from their salary when renewing tax credits.
In more detail, HMRC advise:
Thousands of parents could be at risk of missing out on hundreds of pounds from their tax credits by accidently reporting their income incorrectly.
HMRC is urging parents to check their income to avoid potentially missing out on an average of £495 a year.
Many tax credits claimants who receive statutory maternity pay do not realise that some of this pay should be deducted from their gross pay when their tax credits awards are calculated.
As well as maternity pay, parents can deduct any payments they have received for statutory paternity, shared parental or adoption pay up to a value of £100 a week.
HMRC estimates that parents who did not deduct their statutory maternity pay from their income could have been entitled to on average an extra £495 across the year.
Around 35,000 people could potentially be missing out. A full list of what can be deducted is available on GOV.UK.
This is a welcome contribution by HMRC. Hopefully, the advent of digitised accounting by the tax office will mean that, in the future, these sorts of errors will be adjusted automatically.
One can only hope…
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About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.