Ideally, you should complete your renewal form with the figures entered from your tax return for the last tax year, i.e. year ended 5th April 2016. This will ensure your tax credits award is as accurate as possible.
However, if you have not yet completed your accounts and tax return for the most recent tax year, you may submit estimated figures to the Tax Credit Office. Make sure your estimate is 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.
Supplying an estimate must still be done on the renewal forms and by 31st July 2016 as normal, 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.
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 31st January 2017.
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: Advice shared in this blog 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 forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.