HMRC warns Tax Credits claimants they face £300 fines by July 31

HMRC Tax Credit claimants have been warned over fines of up to £300 this July. Anybody who is a Tax Credit claimant who refuses to report significant changes in circumstance to the government tax department and taxman has been warned.

Andy Wood, tax expert from Tax Natives said: “If you are a tax credit claimant, you should inform HMRC of any changes in your circumstances, such as changes in living arrangements, childcare situations, or employment status. Failure to do so could result in major financial consequences, such as loss of tax credits or fines of up to £300.

"Around 730,000 people will be sent renewal packs by June 19, with the deadline set for July 31. These deadlines are in place to ensure the smooth processing of claims and to prevent any interruptions in receiving tax credits. You have multiple avenues to report changes, including online platforms and phone assistance from HMRC.

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"Using these channels ensures that changes are accurately recorded, providing peace of mind for claimants and keeping the process efficient for HMRC. Having your National Insurance number, details of changes, and income information ready before contacting HMRC can also help streamline the process."

HMRC warns on its website: "Your tax credits could go up, down or stop if there are changes in your family or work life. You must report any changes to your circumstances to HM Revenue and Customs (HMRC). Do this as soon as possible to make sure you get the right amount of tax credits. You’ll have to pay back the money if you’re overpaid. If your tax credits stop, you cannot claim tax credits again."

It also handily shares a list of changes you "must" report to HMRC. "Tell HMRC straight away," the government tax department urges in a warning to households who live up and down the country.