HM Revenue and Customs (HMRC) will be sending out around 1.5 million annual Tax Credits renewal packs for the 2023 to 2024 financial year between May 2 and June 15, 2023. More than 500,000 claimants will have until July 31, 2023, to check their information is correct and notify HMRC of any changes - or risk having their payments stopped.
Tax Credits help working families with targeted financial support, so it is important that people do not miss out on money they are entitled to and complete the packs before the summer deadline. There are two types of renewal packs being sent out by HMRC.
If the pack has a red line across the first page and says ‘reply now’, people will need to confirm their circumstances to renew their Tax Credits. If it has a black line across the first page and says ‘check now’, people will need to check their details are correct - if they are, they do not need to do anything and their Tax Credits will automatically renew.
People on Working Tax and Child Tax Credit can renew their claims online at GOV.UK or on the official HMRC app.
HMRC director-general for customer services Myrtle Lloyd said: “Tax Credits provide families with vital financial support, so it is important that customers look out for their renewal pack and renew before July 31.”
Renewal packs will be sent out in batches, however, HMRC is urging customers who do not receive one to wait until after June 15 before contacting them.
People choosing to use the HMRC app can:
- Renew their Tax Credits
- Update changes to their claim
- Check their Tax Credits payments schedule
- Find out how much they have earned for the year
HMRC also has a video to explain how Tax Credits customers can use the HMRC app to view, manage and update their details - this can be viewed on YouTube here.
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 benefits 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.
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