Umbrella Companies | Time is running out for umbrella company contractors to renew tax credits

Time is running out for umbrella company contractors to renew tax credits

HMRC has issued a reminder to tax credit claimants that they only have until July 31st to renew their claims and it suggests that recipients take action as soon as their renewal pack arrives.

Steve Lamey, the director of benefits and credits at the government department, said tax credit claimants, including those that operate through contractor umbrella companies should be renewing now. The earlier you renew, the sooner HMRC can check you are receiving the correct payments and you will avoid the need to repay money at a later date.

Anyone who misses the renewal deadline is in danger of having their payments stopped, he continued.

HMRC will be closely scrutinising claims this year in a bid to cut down on fraud and it is therefore vital that claimants double check the information they enter on their renewal forms. Information relating to self employment, statements of employment, hours worked, number of children and childcare payments must be accurate and if any details have changed since your last claim, HMRC must be notified.

The Revenue is also warning taxpayers to beware of fake phishing emails informing tax credit claimants that they are due a tax rebate.

At first glance, these emails look genuine and give a click through link that directs the user to a cloned replica of the government department’s website. However, once there, the recipient is requested to give their debit or credit card details. Fraudsters will then use those details to take money from the victim’s account.

Customers have reported more than 46,000 of these phishing emails since HMRC started sending out tax credit renewal forms in April. Since then, HMRC has helped to close down in excess of 150 scam websites, but new ones keep appearing.

HMRC would like to stress that it never, under any circumstances, informs people they are due for a refund of tax via email. All such correspondence is always sent through the post.

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