HMRC Issues Tax Credits Reminder

HM Revenue & Customs (HMRC) issued a plea yesterday for all of those entitled to tax credits to get in touch with them if they have not done so already.

The comments were made in the run-up to the annual deadline for claim renewals, which falls on July 31st. Customers were advised to call HMRC's free helpline in order to receive their benefits allocation.

Sarah Walker, director of benefits and credits at the tax body, added: "If you're receiving tax credits, don't leave renewing until the last minute. Get it sorted out now, so we can make sure you're getting the right money."

The three main types of tax credits currently on offer in the UK are available to pensioners, to workers on low income and to those who have young children. However, figures from Citizens Advice have shown that, in many cases, these tax breaks are being missed out on.

According to the charity, 75 per cent of working credits are not taken up, along with eight per cent of families' benefits. Furthermore, one-third of pensioners are also failing to claim. Commenting on the situation to the Times last month, Anita Monteith of the Institute of Chartered Accountants in England and Wales, said: "A big problem with tax credits is a lack of financial literacy among those who are supposed to claim them.

She added: "For many, the prospect of filling in complicated forms and being in regular contact with [HMRC] is too daunting, especially if personal circumstances change often. Some communities [also] may feel that it goes against their beliefs or culture to claim money."