Tax credits – 1.5 million renewal packs

HM Revenue and Customs (HMRC) is to issue 1.5 million annual tax credits renewal packs for the 2023 to 2024 tax year between 2nd May and 15th June 2023.

Claimants will have until 31st July 2023 to check the information is correct and notify HMRC of any changes to their circumstances which may affect their claim. Timelines are very strict and often don’t take account of postal delays to timing.

Tax credits are to help working families with targeted financial support, so it is important to not miss out on any entitled money.

There are two types of renewal packs:

  • if it has a red line across the first page and says ‘reply now’, claimants need to confirm their circumstances to renew their tax credits
  • if it has a black line across the first page and says ‘check now’, claimants 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

More than 500,000 tax credits claimants must reply to HMRC by the deadline to confirm their circumstances for the the 2023 to 2024 tax year, or risk having payments stopped.

They can renew tax credits for free via GOV.UK or the HMRC app.

Myrtle Lloyd, HMRC’s Director-General for Customer Services:

“Tax credits provide families with vital financial support, so it is important that customers look out for their renewal pack and renew by 31st July. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.”

The renewal packs are being sent out in batches. HMRC is reminding claimants who have not received theirs to wait until after 15th June 2023 before contacting HMRC about their pack.

HMRC have also released a video to explain how tax credits claimants can use the HMRC app to view, manage and update their details.

Renewing online is claimed to be quick and easy. Claimants can log into GOV.UK to check the progress of their renewal, be reassured that it is being processed and know when they will hear back from HMRC. They can use the HMRC app can:

  • renew their tax credits
  • update changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

If there is a change in a circumstances that could affect the tax credits claim, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

  • living arrangements
  • childcare
  • working hours, or
  • income (increase or decrease)
  • Find out more about renewing tax credits claims.
  • Claimants can download the HMRC app for free from their smartphone app store.
  • Find out more about Universal Credit replacing tax credits.
  • Tax credits only claimants will receive their first Cost of Living Payment for the 2023 to 2024 tax year between 2nd and 9th May 2023. The amount paid will be £301.

By the end of 2024, tax credits will be replaced by Universal Credit.

Claimants who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim Universal Credit. It is important they 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 they can apply to move to Universal Credit sooner, if it is right for them.

The government is offering Help for Households.

Criminals use deadlines ….to trick people

Criminals use deadlines, like the one for tax credits renewals, to trick people who might be expecting to hear from HMRC into sharing their banking or other personal details. If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links. It is ok to reject, refuse or ignore any requests – only criminals will try to rush or panic people. HMRC is also warning people not to share their login details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.

Related links

PAYadvice.UK 27/4/2023

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