Tax credit claimants who renewed at 31 July 2010 using estimated figures should give HMRC final 2009/10 figures by 31 January 2011. This particularly applies to the self employed tax credit claimants who may not have known their final 2009/10 profit figure at 31 July 2010.
HMRC is writing to those likely to be affected.
If the final figures are lower than the estimate, claimants are likely to have a tax credit underpayment for 2009/10 and they could be entitled to a higher award in the current year. However, failing to provide the correct details could lead to an overpayment and supplying incorrect information could even lead to a penalty.
Please contact us if you have any questions.