Just a month left for 323,700 customers to renew tax credits

MORE than 323,000 customers in the UK are yet to renew their tax credits ahead of the July 31 deadline and the HM Revenue and Customs (HMRC) has reminded them to do it on time or else, their payments will stop.

Tax credits help working families that have targeted financial support and hence it is important that the customers renew them before the deadline so that they don’t miss out on money they are entitled to, the HMRC – the UK’s tax credit authority – said in a press release.

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

Renewing online is quick and easy. The customers can log into GOV.UK to check on the progress of their renewal, be reassured it’s being processed and know when they’ll hear back from the HMRC.

Myrtle Lloyd, the HMRC’s director general for customer services, said, “There’s just one month to go for our tax credits customers to renew. It’s easy to do online or on the HMRC app – search ‘tax credits’ on GOV.UK.”

Customers who choose to use the HMRC app on their smartphone can:

• renew their tax credits

• make changes to their claim

• check their tax credits payments schedule, and

• find out how much they have earned for the year

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

If there is a change in a customer’s circumstances that could affect their tax-credits claims, they must report the changes to the HMRC. Circumstances that could affect tax credits payments include changes to:

• living arrangements

• childcare

• working hours, or

• income (increase or decrease)

The UK government has recently announced a Cost of Living Payment of £650, payable in two separate lump sums of £326 and £324, for households receiving certain benefits or tax credits, to help with the cost of living.

If tax credits only, they are eligible for each payment. The HMRC will contact them and issue payments automatically, with the first being made by the autumn. Customers do not need to contact the HMRC or apply for the payment.

More information on the Cost of Living Payment, including eligibility, is available on GOV.UK.

Tax credits are set to be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check. If customers choose to apply sooner, it is important to get an independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

The HMRC has also urged the customers to never share their HMRC login details. Someone using them could steal from the customer or make a fraudulent claim in their name. It has also warned people that if someone contacts them saying that they are from the HMRC and wants the customer to transfer money urgently or give personal information, they should never let themselves be rushed. The department has advised people to take their time and check the HMRC’s advice about scams on GOV.UK.