Last year, 10% of those entitled to tax credits failed to meet the renewal deadline. This meant that many people either received their tax credit late, or missed out on them altogether. This year, HM Revenue & Customs (HMRC) are asking employers to get on board and help encourage their employees to renew their tax credits earlier.
Tax credits are to be renewed in April/May of each year, following a notification from HMRC. Depending on the type of tax credit, HMRC will send details to the individual about how to renew their entitlement. The entitlement then has to be renewed by 31st July, otherwise the tax credit will be stopped. Although tax credits aren’t really part of the tax system and do not affect employers directly. HMRC are seeking employer’s assistance in helping their employees get what they’re entitled to. It is hoped that in turn this will lead to greater employee satisfaction, and with active employer contribution, may also lead to fewer pay rise and salary advance requests. HMRC have asked employers to help simply through displaying posters and emails around their offices, or through the payroll process – adding a few lines to employee’s payslips, between now and July, to remind employees to check their tax credits. Apart from the above, the only other instance employers may have to get involved is if they are contacted by HMRC directly, to confirm the earnings or hours worked by some of their employees. Employers are not obligated to raise awareness of tax credits to their employees; however, a little effort could make a significant difference to their employee’s income.
HMRC Seek Employers Help with Tax Credits
Tuesday 13 May 2014
JOIN THE RAFFINGERS TRIBE
Tired of searching endlessly for blogs, books and emails that you hope will help you solve your business problems? Don’t worry, we’ve got your entire business journey covered. From how to secure funding and manage cashflow, right through to succession planning and everything in between. Sound good? Join the Raffingers Tribe to gain access to an ever-growing library including:
- Exclusive tribe events
- Live webinars with incredible guest speakers
- Free downloads, workbooks and cheat-sheets
- A variety of articles covering all things business
Already registered? Click here to log in
Thank you, you have been registered.