Tax Credits Estimating

I am self-employed and my wife and I receive tax credits. However, I have not yet prepared my tax return, so I do not know what income to enter on my tax credit renewal forms. Should I just put the same as last year?

1st August 2012

You can provide an estimate of your income on your renewal forms, but you should get your estimate as accurate as possible.  If your estimate is too low, the Tax Credit Office may pay you too much and then you’ll have to pay it back. If your estimate is too high, then you may not receive everything you are entitled to.

If you have estimated your income, put an ‘x’ in the estimated income box of your tax credits claim form or Annual Declaration form.

Once you have prepared your tax return, you can then provide the Tax Credit Office with your actual figures and this must be done no later than the forthcoming 31st January.

You should also be aware that the deadline for your tax credit renewal was 31st July, so I would encourage you to get these figures over to the Tax Credit Office as soon as possible. Otherwise, your payments could stop and you could be asked to make a repayment of some of the tax credits you have already received.

If you would like assistance with completing your accounts or your tax credit renewal forms, please feel free to contact your local TaxAssist Accountant.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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