Tax Credits renewal for self-employed

If you are self-employed you should complete your renewal form with the figures entered from your tax return for the last tax year, i.e. year ended 5th April 2020. This will ensure your tax credits award is as accurate as possible.

However, if you haven’t completed your accounts and tax return for the most recent tax year, you may submit estimated figures to the Tax Credit Office.

Make sure your estimate is as accurate as possible – if it is too low, the Tax Credit Office may pay you too much and you’ll have to pay it back. If it is too high, you may not receive everything you are entitled to.

You must still include an estimate on the renewal forms and by 31st July 2020 as normal, so you should get these figures over to the Tax Credit Office as quickly as you can. Otherwise, your payments may be halted, and you could be asked to repay some of the tax credits you have already received.

Once you have completed your tax return, you must then provide the Tax Credit Office with your actual figures – no later than 31st January 2021.

If you need help completing your accounts or your tax credit renewal forms, please feel free to call us on 01625 838242

Date published 6 Apr 2020

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.