Renewing your tax credits – here’s what you need to know

From postal renewal packs to avoiding scams, Vicky Shaw finds out more.

Do I need to renew my family tax credits? (Alamy/PA)

Some families receiving tax credits need to take action now, or they may risk getting these valuable benefits stopped.

Tax credits renewal packs for 2023-24 are currently being issued to people, up until June 15 – so, what do you need to know?

Here, HM Revenue and Customs (HMRC) answers some key questions on how they can boost families’ incomes, and explains what to do if you receive a renewal pack…

What are tax credits?

The Government provides financial support to parents and low income workers through child tax credit or working tax credit.

Who do they benefit?

Around 1.5 million working families benefit from tax credits. The average claim is worth thousands of pounds a year.

Why are tax credits in the news?

HMRC is reminding everyone who receives tax credits that they must check or renew their claim before July 31 to avoid their payments being stopped.

Who needs to renew their claim?

If you receive tax credits, HMRC will write to you by June 15. There are two types of letters to look out for.

If your renewal pack has a red stripe across the page, then you will need to check the information, renew and report any changes by July 31.

If your renewal pack has a black stripe across the page, you need to check the information is correct, and you will only need to contact HMRC if you have any changes to report.

How do I renew my tax credits?

The quickest and easiest way is online – search ‘manage your tax credits’ on gov.uk and follow the instructions. You can also renew using the HMRC app, which can be downloaded onto your smartphone. The app allows you to track your claim and details when you can expect payments.

What if my circumstances have changed?

HMRC needs to be notified of some life changes because it could affect how much you’re entitled to. For example, if you move in with a new partner, get married or divorced, your child moves out, or your working hours are reduced. You can report any changes via the HMRC app or on gov.uk.

What if I don’t renew by the deadline?

If you need to renew but fail to, you risk your payments being stopped, or having to repay any overpayments.

How do I avoid scammers?

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 details. If a phone call, text or email is unexpected, don’t give out private information or reply, and don’t download attachments or click on links. It’s OK to reject, refuse or ignore any requests – only criminals will try to rush or panic you. You can forward suspect texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk.

What if I want to make a new claim for tax credits?

Universal credit has replaced tax credits for new customers. You can apply for universal credit, or for pension credit if you and your partner are of state pension age or over.

Can I receive universal credit and tax credits?

You can’t claim tax credits and universal credit at the same time. Your tax credits will stop if you or your partner apply for universal credit.

By the end of 2024, tax credits will be replaced by universal credit for working age claimants. If you receive tax credits, you will receive a letter telling you when to claim universal credit. You need to claim by the deadline shown in the letter to continue receiving financial support.