HMRC warning after 730,000 receive important letter in the post - check now

22 June 2024 , 06:00

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Tax Credit claimants have until July 31 to renew their benefit claim (Image: Getty Images)

Thousands of Tax Credit claimants should have received renewal documents in the post from HMRC.

Earlier this week was the final day HMRC was sending out its renewal packs, and claimants now have until July 31 to renew their Tax Credits claim. If you don't read your letter carefully, you could have their benefit payments stopped. There are two different types of renewal notices and it's important claimants understand what they mean.

Your renewal pack will either contain an "Annual Renewal Notice" or a notice and an "Annual Declaration Form" and these will be identified using red and black lines. If your pack has a black line on it and says the words "check now" it will include the Annual Renewal Notice. This means your Tax Credit claim will renew automatically after July 31.

However, even though your claim will renew automatically, you will need to read through it to check all the information in the form is correct and accurate. If it is, then you don't need to do anything and your Tax Credits will continue at the amount shown in the letter.

With these notices, Citizen's Advice says you should look out for mistakes or out-of-date information, for example, if your income’s been wrongly calculated or your partner's moved in with you. You should also check whether anything is missing, such as if you or your child gets a disability benefit which isn’t mentioned If there are mistakes on your claim then you will need to contact HMRC and provide them with the right information before the July 31 deadline.

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If your notice has a red line on it and the words "reply now", your renewal pack will contain the "Annual Declaration Form" and your Tax Credit claim will not be renewed automatically. If you are one of the 10,000 people who will receive this notice, you will need to send the form back to renew your Tax Credit claim. Your renewal pack will include instructions on how to give the right information.

If you received this notice, you will have been receiving "provisional" Tax Credit payments since April 6 until you renew. If you fail to renew in time, you will then need to pay back the money you received since April.

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. Around 730,000 Tax Credits customers were set to receive their annual renewal notices and the vast majority of claims will be automatically renewed.

Ruby Flanagan