HMRC issues warning to 730,000 tax credit customers as payments could stop | Personal Finance | Finance

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Around 730,000 customers will start receiving their annual renewal notices from this week, HMRC has announced.

HM Revenue and Customs (HMRC) said Tax Credits claimants will receive them between May 2 and June 19, 2024.

While the vast majority of claims will be automatically renewed, Britons are warned that some circumstances require a claimant to renew theirs manually.

According to HMRC, those who receive notices with a black stripe will be automatically renewed, whereas those receiving notices with a red stripe need to renew them themselves.

Those who need to renew their claims will need to do so by the deadline of July 31 or risk their payments being stopped.

Myrtle Lloyd, HMRC’s director general for customer services, said: “Tax Credits are valued by many families for their essential contribution to the monthly family budget, so to avoid payments being stopped please respond to HMRC by the 31 July deadline. For more information search ‘manage my tax credits’ on GOV.UK .”

The quickest and easiest way for customers to renew their tax credits is via GOV.UK or via the free and secure HMRC app, which allows them to track their claim and find out when they can expect payments.

Customers must also report certain life changes which could affect their claim to HMRC.

These include relationship changes, such as moving in with a new partner; getting married or divorced; children leaving home; or a change in working hours.

People can find out more about what changes need to be reported and how to do so online at GOV.UK .

A statement from HMRC reads: “If customers fail to renew by the deadline, they risk their payments being stopped and having to repay any overpayments.

“The 2024 to 2025 Tax Credits notices may show predicted payments for the tax year 2025 to 2026 – these are automatically generated and should be disregarded.”

Additionally, it’s important to note that Tax Credits will end on April 5, 2025, to be replaced by Universal Credit.

Customers will receive a letter from the Department for Work and Pensions, or the Department for Communities if they live in Northern Ireland, explaining what happens next.

This letter is called a Migration Notice and customers are urged not to ignore it.

HMRC also warned customers to watch out for scammers during this period, as criminals typically use deadlines to trick people who might be expecting to hear from HMRC into sharing their banking or other details.

It said: “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. Suspicious contact can be reported on GOV.UK .”


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