HMRC urges customers to renew tax credits by July 31 deadline

HM Revenue and Customs (HMRC) is preparing to send out 1.5 million tax credits renewal packs for the 2023-2024 tax year to customers across the UK.

The packs, to be distributed between 2 May and 15 June, require recipients to check the accuracy of their information and inform HMRC of any changes in their circumstances that may affect their claim.

Tax credits provide working families with vital financial support, ensuring those eligible don’t miss out on essential funds. Upon receiving their renewal pack, customers have until 31 July 2023 to take action.

Two types of renewal packs will be sent out:

1. Packs marked with a red line across the first page and labelled “reply now” require customers to confirm their circumstances to renew their tax credits.
2. Packs marked with a black line and labelled “check now” require customers to review their details for accuracy. If correct, no action is needed, and their tax credits will be automatically renewed.

Over 500,000 tax credit recipients must confirm their circumstances with HMRC by the deadline or risk having their payments stopped. Customers can renew their tax credits for free through GOV.UK or the HMRC app.

Myrtle Lloyd, HMRC’s Director-General for Customer Services, emphasised the importance of prompt action: “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.”

As packs will be sent out in batches, customers who haven’t received theirs by 15 June are advised to wait before contacting HMRC. HMRC has also released a video explaining how customers can use the app to view, manage, and update their tax credit details.

HMRC is urging customers to report any changes in their circumstances that could affect their tax credits claim, including changes to living arrangements, childcare, working hours, or income.

By the end of 2024, tax credits will be replaced by Universal Credit, with claimants receiving a letter from the Department for Work and Pensions (DWP) notifying them of the transition deadline.

As criminals often exploit deadlines like tax credits renewals to defraud unsuspecting recipients, HMRC is warning people not to give out personal or banking details in response to unexpected calls, texts, or emails.

Additionally, the public is advised not to share their login details with anyone and to report any scams or suspicious activities through GOV.UK.