HM Revenue and Customs (HMRC) has announced that some 323,700 people have still to renew their Tax Credits claim ahead of the deadline at the end of this month and is reminding customers that failing to submit their completed pack in time will result in payments being stopped.
Working Tax Credits and Child Tax Credits help working 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.
Claimants can renew their Tax Credits for free on the GOV.UK website or the official HMRC app and renewing online is quick and easy. Customers can also log into their online account to check on the progress of their renewal, be reassured it’s being processed and know when they will hear back from HMRC.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “There’s less than one month to go for our Tax Credits customers to renew. It’s easy to do online or on the HMRC app.”
Customers choosing to use the HMRC app on their smartphone 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 has also shared a video on YouTube to explain how Tax Credits customers can use the HMRC app to view, manage and update their details.
If there is a change in a customer’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
- An increase or decrease to income
£650 cost of living payment
The UK Government has recently announced 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, will receive a payment for £326 from July 14 and one for £324 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.
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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