Martin Lewis issued an urgent warning in his newsletter, asking those who claim tax credits to take action or risk losing out.
If you’re claiming tax credits, you’ll be sent a renewal pack that tells you how to renew your tax credits.
If it has a red line across the first page and says ‘reply now’ you will need to renew your tax credits.
If it has a black line and says ‘check now’, you will need to check your details are correct.
If your details are correct you do not need to do anything and your tax credits will be automatically renewed. You must tell HMRC if your circumstances have changed or anything in your pack is incorrect.
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Martin warned how important it is to check the coloured line before the deadline of July 31.
He said: "Check the colour of the line on your tax credit letter and take action before Friday 31st.
"Almost three million letters have been sent out to those on tax credits, and if the line is red you must respond or your payments could stop.
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"For those with a black line, credits will automatically renew this year due to coronavirus – but you could still lose out if your info is wrong."
What are tax credits?
Tax credits have been replaced by Universal Credit for most people.
You can only make a new claim for tax credits if you:
- get the severe disability premium, or are entitled to it
- got or were entitled to the severe disability premium in the last month, and you’re still eligible for it
