…Researched and contributed by Henry George for TDPel Media.
HM Revenue & Customs (HMRC) has announced that around 1.5 million tax credits renewal packs for the 2023-24 tax year will be issued to people from early next month.
The annual renewal packs will be sent out between May 2 and June 15.
In this article, we will discuss the importance of renewing tax credits, the different types of renewal packs, and how people can renew their tax credits.
Importance of Renewing Tax Credits
Tax credits are a form of targeted financial support that help families in need.
Therefore, it is crucial that customers renew their tax credits by the deadline to avoid their payments being stopped.
More than 500,000 tax credits customers will need to reply to HMRC to confirm their circumstances for the 2023-24 tax year.
Failure to do so could lead to their payments being stopped.
Types of Renewal Packs
There are two types of renewal packs, as per HMRC.
The first type has a red line across the first page and says “Reply now”.
People who receive this pack need to confirm their circumstances to renew their tax credits.
The second type has a black line across the first page and says “Check now”.
People who receive this pack need to check that their details are correct.
If their details are correct, they do not need to take any action as their tax credits will be automatically renewed.
How to Renew Tax Credits
People can renew their tax credits free of charge via gov.uk or the HMRC app.
Once people receive their pack, they have until July 31 to check the information is correct and notify HMRC of any changes to their circumstances that may affect their claim.
It is worth noting that the renewal packs will be sent out in batches.
Therefore, HMRC advises people who have not received theirs to wait until after June 15 before making contact.
Replacing Tax Credits with Universal Credit
By the end of 2024, tax credits will be replaced by Universal Credit.
Tax credits recipients will receive a letter from the Department for Work and Pensions (DWP) informing them of when to claim Universal Credit.
The government is also offering various forms of support to help people through the cost-of-living crisis, including a cost-of-living support payment of £301 that will be paid automatically to eligible people.
Warning from HMRC
HMRC has warned people not to give out private information or reply to unexpected phone calls, texts, or emails related to tax credits.
They have also warned against sharing login details with anyone else.
Criminals use deadlines such as the one for tax credits renewals to trick people into sharing their banking or personal details.
In conclusion, it is important that tax credits customers look out for their renewal packs and renew their tax credits by July 31.
Failure to do so could lead to their payments being stopped.
Renewal packs will be sent out in batches, and people who have not received theirs should wait until after June 15 before making contact.
Additionally, people should be cautious when receiving unexpected phone calls, texts, or emails related to tax credits and should not give out their personal details.