HM Revenue and Customs (HMRC) has issued an urgent warning to more than 222,600 Tax Credits customers who have not yet submitted their renewal packs. Payments will be stopped if renewals are not completed before Sunday, July 31.
Working Tax Credits and Child Tax Credits help families with targeted financial support, so it’s important that people 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.
HMRC said that more than 363,000 customers have already renewed their claims ahead of the deadline and is reminding people that it can be done at any time, day or night, through HMRC’s online services, including the HMRC App.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The 31 July deadline is fast approaching and renewing your Tax Credits is too important to forget. HMRC support is available at all times of the day and night via GOV.UK and the smartphone app to help customers get their renewals right.
“It’s great to see so many customers have already renewed their Tax Credits. I urge those who are yet to renew to do so as soon as possible, in order to avoid having their payments stopped.”
HMRC is also warning that as the deadline for renewals approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers.
Customers are advised that if someone contacts them saying they are from HMRC and wants them to transfer money urgently or give personal information, they should never let themselves be rushed.
HMRC is also 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.
Fastest way to renew your Tax Credits
HMRC has said the quickest way to renew your Tax Credits claim is to use the app which is available for iOS and Android users.
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
Earlier this year, the UK Government 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 before the end of July 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.
Customers are also being urged 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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