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
-
HMRC to raid bank accounts for unpaid tax
HMRC is restarting the use of direct debt recovery for individuals and businesses who choose not to pay the tax they owe despite having the means to do so. Who’s in the firing line?
-
Mortgage interest: don’t miss out on unused relief!
You own a buy-to-let property and need to report your profits for 2024/25. You have a mortgage, but your calculations show that the tax reducer will exceed the rental profit. Will the excess go to waste?
-
When should you submit a protective claim to HMRC?
Your business has charged VAT on some sales but a recent tribunal decision has indicated that the goods are zero-rated according to the law. Should you submit a claim to HMRC for a rebate on your past sales?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.