HM Revenue and Customs
New parents could miss out on almost £500 from their tax credits
Many parents do not realise they need to deduct their statutory parental pay from their salary when renewing tax credits.
Thousands of parents could be at risk of missing out on hundreds of pounds from their tax credits by accidently reporting their income incorrectly.
HM Revenue and Customs (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.
Parents need to make sure they renew their claim before the 31 July deadline for tax credits renewals.
Tax credits help working families with targeted support and more than 65,000 customers this year have already used the app to renew their tax credits, compared to 38,411 customers in 2017.
All online customers can now log into GOV.UK to check the progress of their renewal so they can be reassured it’s being worked on and know when they’ll hear back from HMRC.
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.
- The deadline for people to renew their tax credits is 31 July 2018. Failure to renew before the deadline will mean payments are stopped and customers may have to repay the money they have received since April.
- This only applies to current awards. HMRC is unable to adjust finalised awards made in previous years.
- Claimants can get help and information on renewing tax credits:
- On GOV.UK
- By tweeting @HMRCcustomers or posting on our Facebook page with general queries
- Using HMRC’s App, which is available on the App Store or Google Play Store
- Using HMRC service on Amazon Alexa
- Using the online forum (click on Tax Credits and You)
- Through HMRC’s webchat help service
- By calling the tax credits helpline: 0345 300 3900
Latest News from
HM Revenue and Customs
Exports continue to rise across the UK07/12/2018 11:10:00
The number of businesses exporting goods in the United Kingdom has increased to 110,000, a rise of 1.5% from the same quarter in the previous year.
£8 million funding scheme for customs intermediaries and traders open04/12/2018 17:03:00
HM Treasury and HMRC grants for training and IT improvements ahead of UK leaving the EU.
Christmas bonus for millions of workers03/12/2018 11:10:00
Workers can claim a rebate on their expenses and get and an early present from HMRC.
New homeowners benefit from stamp duty tax relief21/11/2018 15:17:00
More than 180,500 first time buyers have saved a total of £426 million through First Time Buyers Relief.
Sugar tax revenue helps tackle childhood obesity21/11/2018 09:12:00
Soft drinks manufacturers and traders have paid an extra £153.8 million in tax since April, statistics published by HM Revenue and Customs (HMRC) reveal.
Five ways HMRC can help boost your finances13/11/2018 11:10:00
HM Revenue and Customs is reminding taxpayers, during Talk Money Week, how it can provide them with financial support.
HMRC to review High Income Child Benefit Charge penalty cases02/11/2018 14:10:00
High Income Child Benefit Charge cases will be reviewed where a 'Failure to Notify' penalty was issued for certain tax years.
New HMRC General Counsel and Solicitor appointed31/10/2018 15:10:00
HMRC has appointed Alan Evans as its new General Counsel and Solicitor.