HM Revenue and Customs (HMRC) has warned that thousands of people on Tax Credits have until the end of this month to renew their claim or risk having their payments stopped.
The annual deadline is July 31 and more than 300,000 claimants who received a renewal pack with a red line across the first page and the words ‘reply now’ still need to confirm their circumstances for the current tax year to continue receiving payments.
Circumstances that could affect Tax Credits payments include changes to living arrangements, childcare, working hours or a change in income.
Claimants can renew their Tax Credits for free on the GOV.UK website or the official HMRC app and renewing online is quick and easy. People can also log into their online account to check on the progress of their renewal, be reassured it’s being processed and know when they will hear back from HMRC.
Myrtle Lloyd, HMRC’s Director-General for Customer Services, said: “Please act now to meet the July 31 deadline for renewing your tax credits or your payments could stop. There is no need to call us, it is quick and easy to renew via GOV.UK or the HMRC app. For details on how to renew, search ‘manage my Tax Credits’ on GOV.UK.”
HMRC sent out two types of renewal packs to 1.5million customers between May 2 and June 15, 2023.
These were:
- ‘reply now’ packs had a red line across the first page and the words ‘reply now’ - people must confirm their circumstances to renew their Tax Credits
- ‘check now’ packs had a black line across the first page and the words ‘check now’ - people whose details are correct do not need to do anything and their Tax Credits will be automatically renewed
HMRC has also shared a video on YouTube to explain how Tax Credits customers can use the HMRC app to view, manage and update their details.
Change of circumstances
If there is a change in someone’s circumstances that could affect their Tax Credits claims, they must report the changes to HMRC.
Circumstances that could affect Tax Credits payments include changes to:
- Living arrangements
- Childcare
- Working hours
- Income - increase or decrease
Tax Credits are ending for everyone
By the end of 2024, Tax Credits will be replaced by Universal Credit. People in receipt of Tax Credits will receive a letter from the Department for Work and Pensions (DWP) inviting them to make a claim for Universal Credit.
It is important that customers claim by the deadline shown in the letter, also referred to as a ‘Migration Notice’, in order to continue receiving financial support.
Tax Credits will end even if they decide not to claim Universal Credit. However, there is no need to wait for their transfer letter, and customers can apply to move to Universal Credit sooner, if it is right for them.
Moving to Universal Credit
Many people who move from Tax Credits to Universal Credit could be financially better off, but should use an independent benefits calculator to check before making a claim as once you start the application process, you cannot revert back and may end up on lower payments.
Find out more about Tax Credits ending and Universal Credit here.
To keep up to date with the latest Tax Credits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
READ NEXT
PIP assessment top tips for people due a consultation over the phone, in-person or by video call
New calls for DWP to amend 'discriminatory' PIP rules for disabled people going on holiday abroad
PIP provides up to £691 each month for thousands of people with these 24 respiratory conditions
Older people with any of these 57 health issues could be due up to £101 each week
DWP could provide up to £691 each month for people with any of these 70 neurological conditions
