HMRC needs your help: Are your self-employed clients also tax credits claimants?

When speaking to your clients about their Self Assessment (SA) returns please remind them to update the Tax Credits Office with their final income details to ensure they get the right benefits. 

Tax credit claimants who make an SA return need to provide the net profit figure from that return before 31 January 2018. If they have other income, for example: dividends, investment income, interest, pensions or property/rent; these also need to be reported to the Tax Credits Office. These sources are commonly omitted from tax credit claims and renewals. 

The changes in the dividends allowance taking effect from 6 April 2018 might mean that your clients draw more dividends than usual this year. This means there is a greater risk that their tax credits award could be wrong. You can help your clients by reminding them to update the Tax Credits Office.

Claimants who receive too much money will need to repay HMRC later. 

If your clients need to tell HMRC about their updated income for last year, please tell them to call the Tax Credits helpline on 0345 300 3900. This cannot currently be done online.  

Claimants can get support to help work out their correct tax credits income by visiting GOV.UK  and searching for ‘Tax credits: income working sheet’ (TC825).

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