Post Office payments temporary reprieve
HMRC was due to stop payments of certain benefits, including tax credits and child benefit, into Post Office accounts on 30 November 2021. However, a last-minute reprieve will be welcome news to claimants. What’s going on?
Recipients of certain benefits that use Post Office card accounts for incoming payments were supposed to provide alternative bank details to HMRC by 30 November 2021, or risk suspension of payments. The affected benefits are:
- tax credits;
- child benefit; and
- guardian allowances.
This was due to expiration of the contract between HMRC and the Post Office. Thankfully, some common sense has prevailed during what is a busy time of year - both for tax compliance and obvious familial reasons. HMRC has now announced that it has agreed a one-off extension with the Post Office until 5 April 2022.
Whilst this is obviously welcome news for affected individuals just prior to Christmas, it is crucial to update these details via the tax account, or by contacting HMRC’s tax credits or child benefit helpline sooner rather than later.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?