More than 300,000 people are being warned they have one month left to renew their Tax Credits or their payments will stop.
Each year, over one million Tax Credit claimants must renew their claim with HMRC and the deadline to do it this year is July 31 2023.
If claimants don't renew by this deadline they risk having their payments stopped.
There are two types of Tax Credits that you could be entitled to - Working Tax Credit and Child Tax Credit and you can claim both at the same time.
The basic amount of Working Tax Credit is £2,280 a year but you could get more and you can claim up to £3,235 a year for Child Tax Credit.
The amount you get depends on your personal circumstances and includes things such as living arrangements, childcare, working hours and income.
HMRC sent out renewal packs to claimants between Tuesday, May 2 and Thursday, June 15 - if you still haven't received one you should contact HMRC and request a new pack.
These packs are:
- "Reply now" packs - These had a red line across the first page with the words "reply now" and claimants need to confirm their circumstances to renew their tax credits
- "Check now" packs - These had a black line across the first page with the words "check now" and customers whose details are correct do not need to do anything and their tax credits will be automatically renewed
HMRC says around 300,000 people have received the "reply now" pack and need to confirm their circumstances.
Myrtle Lloyd, HMRC’s director-general for customer services, said: "Please act now to meet the 31 July 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.
How to renew your Tax Credit claim
HMRC says the quickest and easiest way to renew your tax credits is to renew online here - or renew using the HMRC app.
However, you can also renew over the phone by calling the HMRC Tax Credit helpline on 0345 300 3900 or by post.
According to HMRC guidance, you’ll need:
- your renewal pack (if you have one)
- details about any changes to your circumstances
- you and your partner’s total income for the last tax year - 6 April 2022 to 5 April 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
- Income
What happens if a miss the renewal 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.
However, this is not certain and decisions are made on a case by case bases.
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 received since April 6, 2023.
You should also be aware that if HMRC stops your payments, you cannot make a new claim for them.
You will instead have to make a claim for Universal Credit or Pension Credit.
