HMRC prepares to send 1.5 million tax credits renewal packs

HM Revenue and Customs (HMRC) will issue 1.5 million annual tax credits renewal packs for the 2023 to 2024 tax year to customers between 2 May and 15 June 2023.

Once customers receive their annual renewal pack they will have until 31 July 2023 to check the information is correct and notify HMRC of any changes to their circumstances which may affect their claim.

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’, customers will need to confirm their circumstances to renew their tax credits
• if it has a black line across the first page and says ‘check now’, customers will need to check that their details are correct. If they are, they do not need to do anything and their 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. Customers can log into GOV.UK to check the progress of their renewal, be reassured that it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app can:

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

If there is a change in a customer’s circumstances that could affect their tax credits claim, they 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 their transfer letter, and customers can apply to move to Universal Credit sooner, if it is right for them.

The government is offering Help for Households. Check GOV.UK to find out what cost of living support individuals could be eligible for.

Criminals use deadlines, like the one for tax credits renewals, to trick people who might be expecting to hear from HMRC into sharing their banking or other personal details. If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links. It is ok to reject, refuse or ignore any requests – only criminals will try to rush or panic people. HMRC is also warning people not to share their login details with anyone else. Visit GOV.UK for more information on how to report a scam or suspicious activity.