HMRC is warning that thousands of parents could be at risk of missing out on hundreds of pounds from their tax credits by accidently reporting their income incorrectly through failure to take into account some statutory payments, ahead of next week’s deadline for renewal claims
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 around 35,000 people could potentially be missing out. Parents need to make sure they renew their claim before the 31 July deadline for tax credits renewals.
Angela MacDonald, HMRC’s director general for customer services, said: ‘We want to make sure all our customers get all the help they’re entitled to when they renew their tax credits.
‘As the 31 July deadline for tax credits renewals approaches, we want to ensure nobody misses out. That’s why we’re urging parents to make sure they remember to deduct payments for statutory maternity pay, paternity pay, and adoption pay.’
Guidance Tax credits: working out income is here.
Report by Pat Sweet
