HMRC sending out tax credits renewal packs from next month

HM Revenue and Customs (HMRC) is due to issue 1.5 million annual tax credits renewal packs between 2 May and 15 June 2023.

It is important that you check the details contained in your annual renewal pack are correct, including income details and report any change in circumstances to HMRC before 31 July 2023.

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

There are two types of renewal packs:

• if it has a red line across the first page and says ‘reply now’, you will need to confirm your circumstances to renew your tax credits
• if it has a black line across the first page and says ‘check now’, you will need to check that their details are correct. If they are, you do not need to do anything and your tax credits will be automatically renewed

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

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

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “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. For details on how to renew, search ‘manage my tax credits’ on GOV.UK.”

The renewal packs will be sent out in batches. HMRC is reminding customers who have not received theirs to wait until after 15 June before contacting HMRC about their pack.

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

 

 

Renewing online is quick and easy: log into GOV.UK to check on the progress of your renewal, know it is being processed and know when you will hear back from HMRC.

You can also use the HMRC app on your smartphone to:

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

If there is a change in circumstances that could affect their tax credits claim, you 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)

By the end of 2024, tax credits will be replaced by Universal Credit. Customers 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 that customers 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 the transfer letter, and customers can apply to move to Universal Credit sooner, if it is right for them.