More than 300,000 Brits have been warned their tax credits payments will stop if they aren't renewed by the deadline at the end of next month. Tax credits help working families with targeted financial support and HM Revenue and Customs says action is needed to ensure they don't miss out on money they are entitled to.
HMRC said 323,700 people have yet to renew their tax credits ahead of the deadline of July 31. Any changes to claimants' circumstances must be reported.
Myrtle Lloyd, HMRC’s director general for customer services, said: "There’s just one month to go for our tax credits customers to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK."
Customers choosing to use the HMRC app on their smartphone can:
- renew their tax credits
- make changes to their claim
- check their tax credits payments schedule, and
- find out how much they have earned for the year
Circumstances that could affect tax credits payments include changes to:
- living arrangements
- childcare
- working hours, or
- income (increase or decrease)
Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.
The UK Government has announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living. If tax credits only, they are eligible for each payment. HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact HMRC or apply for the payment.
