HMRC to stop paying certain benefits to Post Office accounts
HMRC is to stop paying certain benefits to Post Office accounts from the end of November 2021. Which payments are affected and what do account holders need to do before then?
The Low Incomes Tax Reform Group (LITRG) has issued a reminder that HMRC and the DWP will stop making payments to Post Office accounts after 30 November. Recipients of tax credits, universal credit, child benefit and guardian’s allowance must provide alternative bank account information to HMRC by that date, or payments will stop. HMRC will then write to the recipient to prompt for account details before payments can resume. As this is just before Christmas, falling foul is likely to cause hardship.
If a recipient doesn’t hold an alternative account, they will need to open one with a bank, building society or credit union and advise HMRC or the DWP (or both) of the new details. If an account cannot be opened, the individual must contact HMRC for further advice ASAP.
Related Topics
-
Should you agree to your customer’s self-billing request?
A customer wants to adopt a self-billing system, meaning they will issue invoices on your behalf and charge VAT or otherwise. Can you refuse their request and what are the risks of accepting?
-
Travel expenses - exempt or not?
You have several employees who travel from home or their workplace in the course of doing their job. Naturally, you meet the cost of their travel but should you be deducting tax and NI from the payments, or are they exempt?
-
Lending to a relative - avoiding the tax trap
Your daughter needs financial help to get her company started. You’ve agreed that your company will lend her the money. Your accountant says that this will trigger a tax charge. What is the charge and how can you legitimately dodge it?
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.