HMRC issues warning as 730,000 households to receive letters from this week

30 April 2024 , 12:48

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Your claim for Tax Credits may need to be renewed (Image: Getty Images/iStockphoto)

HMRC has said thousands of Tax Credit households will start receiving their annual renewal notices from this week.

The renewal packs, which are being sent to 730,000 households, should arrive between May 2 and June 19, 2024. There were two types of renewal packs and fewer than 10,000 will actually need to take action.

If your renewal notice has a red line and the words “reply now” then this means you need to renew your Tax Credits. However, if your pack has a black line and the words “check now” then you only need to contact HMRC if your details have changed. You must renew your Tax Credits by July 31 - or risk having your payments stopped. You can renew your Tax Credits online through GOV.UK or the HMRC app. You can also call the HMRC on 0345 300 3900 or post your renewal pack back to HMRC.

Myrtle Lloyd, HMRC Director General for Customer Services, said: “Tax credits are valued by many families for their essential contribution to the monthly family budget, so to avoid payments being stopped please respond to HMRC by the 31 July deadline. For more information search ‘manage my tax credits’ on GOV.UK.”

Changes that must be reported to HMRC include relationship changes, such as moving in with a new partner, getting married or divorced, children leaving home, or any change in working hours. Tax Credits are ending on April 5, 2025, and are being replaced by Universal Credit.

Date millions on Universal Credit and benefits will get a pay rise this year

When it is your turn to be transferred across, you will receive a "migration notice" in the post. This will give you a three-month deadline to start claiming Universal Credit - and if you don’t claim within this time, your current benefits will stop.

You can choose to move over earlier, if you think you will be better off - but do your research first, as you can't move back to legacy benefits once you've been transferred to Universal Credit. If you believe you’ll be worse off, and you wait until you’re moved over through "managed migration", then you may get monthly transition payments which are designed to cover the shortfall of payments.

Levi Winchester