HMRC has warned that more than a million benefits claimants will need to take action or they will have their payments stopped this summer. Those who claim tax credits will receive a renewal pack from the government department between Tuesday, May 2 and Thursday, June 15.
They will then have until Monday 31 July to check their information is correct and notify HMRC of any changes to their circumstances. This could include changes to living arrangements, childcare, working hours, or income. If they don't let HMRC know, claimants could have their payments stopped for the 2023 to 2024 tax year.
Two types of renewal packs are to be sent out, which will dictate the action needed. One renewal pack, which has a red line across the first page and says ‘reply now’, will require customers to confirm their circumstances to renew their tax credits.
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The other, which has a black line across the first page and says ‘check now’, means customers will need to check that their details are correct. If they are, they do not need to do anything and their tax credits will be automatically renewed.
Customers can renew their tax credits for free via GOV.UK or the HMRC app.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax credits provide families with vital financial support, so it is important that customers look out for their renewal pack and renew by 31 July. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.”
The renewal packs will be sent out in batches. HMRC is reminding customers who have not received theirs to wait until after Thursday June 15 before getting in contact about their pack.
By the end of 2024, tax credits will be 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 claim Universal Credit.
HMCR has urged customers to claim by the deadline shown in the letter to continue receiving financial support as their 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.
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