Over one million Tax Credit households are set to receive their renewal pack in the post from next week.
HMRC will be sending out 1.5million renewal packs to claimants between Tuesday, May 2 and Thursday, June 15.
Each year, Tax Credit claimants must renew their claim and you can do that in a number of different ways.
You can do it online through your GOV.UK account or you can use the HMRC app.
You can also call the HMRC Tax Credit helpline on 0345 300 3900 or post back the renewal pack you are sent by HMRC.
You will have until July 31 to renew your Tax Credit claim - if you don't your benefits could be stopped for the next tax year.
What are Tax Credits?
There are two Tax Credits you can claim - these are Child Tax Credit and Working Tax Credit.
Working Tax Credit is paid to those who work and are on a low income or are registered as disabled and Child Tax Credit is paid to those who have children
You can claim one or both of them depending on your circumstance.
The amount you can get depends on your personal circumstance as there are a number of different elements for Tax Credits.
The basic amount of Working Tax Credit is £2,280 a year in 2023-24 but you could get more.
If you claim the child element of Child Tax Credit, you could claim up to £3,235 a year.
How to renew a Tax Credit claim
You can renew your Tax Credit claim in different ways.
If you receive the renewal pack, it should arrive to you by June 15 - if it hasn't you should then contact HMRC and request a new pack.
There are two types of renewal packs you could receive according to GOV.UK.
The first pack will have a red line across the first page and say "reply now".
If you receive this pack, you will need to confirm your circumstances to renew your Tax Credits.
The second pack will have a black line on the first page and say "check now".
If you get this one, you will need to check your details are correct.
If they are then you do not need to do anything and your Tax Credits will automatically be renewed.
When you first apply for Tax Credits you needed to provide your National Insurance number as well as answer questions on your income, benefits you receive, childcare, and the hours you work.
If your circumstances are different from when you initially claimed then you will need to report it.
Changes can include:
- A change to your working hours
- The death of a partner
- The death of a child
- If a child is taken into custody
- Changes in relationships, such as a divorce or civil partnership breaking down
- If your child leaves home
- If your child stops approved education/training
- If the costs of childcare drop by £10 or more, or if you get other financial assistance with childcare
- If childcare stops completely
The form will include guidance notes to help you fill it out properly.
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.
