Thousands of people could lose their entitlement to benefits if they fail to act on renewal notices. More than 300,000 people could be cut off from benefits and cost of living payments at the end of July.
People who receive Working Tax Credit and Child Tax Credit now have just weeks to renew their claims or risk losing the extra cash. Both types of tax credits are also eligible for three cost of living payments totalling £900 in the 2023/2024 financial year
HMRC issued 1.5 million annual tax credits renewal packs for the 2023 to 2024 tax year to customers between May 2 and June 15, 2023. But it says more than 300,000 people are yet to respond and have just the rest of this month to renew their claim or risk having their payments stopped. Take a look at when your benefits could be stopped, and how to ensure you don't miss out on the payments.
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When could your benefits be stopped?
The annual deadline is July 31 and more than 300,000 customers 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., reports LanscLive.. The quickest and easiest way for customers to renew their tax credits is digitally via GOV.UK or the HMRC app.
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."
What have claimants been told to do?
HMRC sent out two types of renewal packs for tax credits. These are:
- 'reply now' packs that had a red line across the first page and the words "reply now." Customers must confirm their circumstances to renew their tax credits
- 'check now' packs that had a black line across the first page and the words "check now." Customers whose details are correct do not need to do anything and their tax credits will be automatically renewed
What happens if you miss the benefits deadline?
If you miss the deadline, you will be sent a TC607 statement which will confirm the termination of your tax credits. You should then contact HMRC within 30 days to tell them why you missed the deadline and your tax credit claim could be restored but this is not guaranteed as decisions are made on a case-by-case basis.
If you don't respond within 30 days of receiving the letter, your benefits will stop and you'll have to pay back all tax credits you've received since April 6, 2023. If HMRC stops your payments, there is no going back - you cannot make a new claim for tax credits and if you still need Government support you will have to try applying for Universal Credit instead.
Those whose tax credits are stopped and do not go on to Universal Credit will no longer be entitled to the remaining cost of living payments for people on means-tested benefits. As well as repaying their earlier tax credits, they may also be asked to pay back the first cost of living payment of £301 from April/May because they no longer have a valid tax credit claim for this financial year.
HMRC further warned: "It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit."
Scam warning on benefit renewals
It has also warned people that criminals use tax credits renewals and other deadlines in scams to attempt to trick people into sharing their banking or other personal details. Typical scam examples include emails or texts claiming an individual's details aren’t up to date and that they risk losing out on payments.
Officials said that if a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links. HMRC is also warning people not to share their log-in details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.
By the end of 2024, tax credits will be completely replaced by Universal Credit. Customers who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to put in a claim for Universal Credit instead.
How to renew your tax credits
HMRC says the quickest and easiest way to renew your tax credits is to renew online at this GOV.UK webpage - or by using the HMRC app. However, you can also renew over the phone by calling the HMRC Tax Credit helpline on 0345 300 3900.
You will need your renewal pack (if you have one) and to provide details about any changes to your circumstances, and your and your partner's total income for the last tax year from April 6, 2022, to April 5, 2023.
If there is a change in your circumstances that could affect your Tax Credits claim, then you must report this to HMRC. Circumstances that could affect tax credits payments include changes to living arrangements, childcare, working hours, and income.
