HM Revenue and Customs (HMRC) has revealed that more than 33,600 customers have successfully used its official app to renew their Tax Credits claim this year and could be the easiest and quickest way to avoid payments being stopped if the July 31 deadline is not met.
Working Tax Credits and Child Tax Credits help families with targeted financial support, so it’s important that customers renew before the deadline to ensure they do not miss out on money they’re entitled to - especially during these challenging cost of living times when every penny counts.
Renewal packs were sent out in May and the app allows claimants to directly access their Tax Credits account at the touch of a button. The app can be used on any smartphone or tablet, at any time, eliminating the need to call HMRC, which could also help customers save time and money.
Customers using the HMRC app can:
- renew their Tax Credits
- make changes to their claim
- check their Tax Credits payments schedule
- find out how much they have earned for the year
HMRC said nearly 259,000 app users have used the app more than 10 million times in the last year to do things like check their payment dates and amount they will be receiving.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for our Tax Credits customers to renew their claims. It’s quick, easy and free to complete a renewal on the HMRC app.”
HMRC has also shared a video on YouTube to explain how Tax Credits customers can use the app to view, manage and update their details.
Changes in circumstances
If there is a change in a customer’s circumstances that could affect their Tax Credits claims, they must report them to HMRC.
Circumstances that could affect Tax Credits payments include changes to:
- Living arrangements
- Childcare
- Working hours
- An increase or decrease to income
It's important to note, that certain changes will trigger voluntary migration to Universal Credit - find out more here.
Customers can download the app at the App Store or Google Play. They can also renew their tax credits and manage their claims online on the GOV.UK website.
£650 cost of living payment
The UK Government announced in May a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits from the Department for Work and Pensions (DWP) or Tax Credits, to help with higher household costs as a result of rising energy bills and soaring inflation.
People receiving one of the eligible benefits and Tax Credits, started to receive a payment for £326 on July 14 with the payments expected to be completed by July 31. The second payment for £324 will be paid sometime in the autumn - no date has been announced yet.
If someone only receives Tax Credits, they will also qualify for the payments, but these will be made later in the year - the only details we know is that it will be in the autumn and winter.
HMRC said it will contact eligible customers and issue payments automatically, with the first being made by Autumn - you do not need to contact HMRC or apply for the payment.
Tax Credits are ending
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 should 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 cCredits or any other benefits that Universal Credit replaces.
HMRC is urging customers never to share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name.
HMRC is also warning people that if someone contacts them saying that they are from HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed.
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