Tax credits: Claimants urged to renew benefit with HMRC before deadline or miss out on up to £3,235
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More than one million households have been urged to look out for letters arriving from the HM Revenue and Customs (HMRC) from today (Monday, May 2) - or they could risk losing out on a £1,000 cash boost. The HMRC is sending 1.5million households across the UK “Tax Credit renewal packs” from this week.
The letters will arrive between today (May 2) and Thursday, June 15. Claims for tax credits must be renewed each year, otherwise the benefit could be stopped.
If you are a claimant and receive your annual renewal pack, you will have until July 31 to check the information is correct and notify HMRC of any changes to your circumstances which may affect your claim.
What are Tax Credits?
There are two types of tax credits which are working tax and child tax credit. They’re given to people who are on low incomes, are registered as disabled or have children that are dependent on them.
Depending on your personal situation, rates vary - but you can get up to £2,280 if you’re eligible for the basic element of working tax credit or up to £3,235 if you claim the child element of child tax credit.
Universal Credit has replaced tax credits for new claimants, but many have not yet made the switch over yet. The government has said that everyone will be transitioned over to receiving Universal Credit eventually and by 2024.
However, if you already claimed tax credits in the previous financial year you’re able to renew them once you’ve received your renewal pack. 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 July 31.
"For details on how to renew, search ‘manage my tax credits’ on Gov.uk."
What if I don’t receive my renewal pack?
The renewal packs will be sent out in batches between May and June. HMRC has said that customers who have not received theirs to wait until after June 15.
If they still don’t receive their letter by this date, they should contact HMRC and request a renewal pack.