New parents could miss out on almost 拢500 from their tax credits
Many parents do not realise they need to deduct their statutory parental pay from their salary when renewing tax credits.

Thousands of parents could be at risk of missing out on hundreds of pounds from their tax credits by accidently reporting their income incorrectly.
HM Revenue and Customs (HMRC) is urging parents to check their income to avoid potentially missing out on an average of 拢495 a year. Many tax credits claimants who receive statutory maternity pay do not realise that some of this pay should be deducted from their gross pay when their tax credits awards are calculated.
As well as maternity pay, parents can deduct any payments they have received for statutory paternity, shared parental or adoption pay up to a value of 拢100 a week.
HMRC estimates that parents who did not deduct their statutory maternity pay from their income could have been entitled to on average an extra 拢495 across the year. Around 35,000 people could potentially be missing out. A full list of what can be deducted is available on 188体育.
Parents need to make sure they renew their claim before the 31 July 2018 deadline for tax credits renewals.
Tax credits help working families with targeted support and more than 65,000 customers this year have already used the app to renew their tax credits, compared to 38,411 customers in 2017.
All online customers can now log into 188体育 to check the progress of their renewal so they can be reassured it鈥檚 being worked on and know when they鈥檒l hear back from HMRC.
Angela MacDonald, HMRC鈥檚 Director General for Customer Services, said:
We want to make sure all our customers get all the help they鈥檙e entitled to when they renew their tax credits.
As the 31 July 2018 deadline for tax credits renewals approaches, we want to ensure nobody misses out. That鈥檚 why we鈥檙e urging parents to make sure they remember to deduct payments for statutory maternity pay, paternity pay, and adoption pay.
Online help and information on renewing tax credits is available on 188体育 and via HMRC鈥檚 customer service Twitter feed . Support is also available on the tax credits helpline.
Further information
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The deadline for people to renew their tax credits is 31 July 2018. Failure to renew before the deadline will mean payments are stopped and customers may have to repay the money they have received since April.
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This only applies to current awards. HMRC is unable to adjust finalised awards made in previous years.
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Claimants can get help and information on renewing tax credits:
- On 188体育
- By tweeting or posting on with general queries
- Using HMRC鈥檚 App, which is available on the or
- Using HMRC service on Amazon Alexa
- Using the (click on Tax Credits and You)
- Through HMRC鈥檚 webchat help service
- By calling the tax credits helpline: 0345 300 3900
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Follow HMRC鈥檚 Press Office on