Tax Credit claimants – Your Tax Credits renewal pack is on its way

Important information for renewing your claim for Tax Credits

If you are claiming Tax Credits you should receive your annual renewal pack from HMRC between now and mid-June 2023. The renewal packs are being sent to Tax Credit claimants between 2 May and 15 June 2023. The renewal ensures that the amount you received in the previous year was correct, so you need to check the information carefully and tell the Tax Credit office immediately if anything has changed or if the details are wrong or incomplete.

If incorrect information is submitted you may be underpaid or overpaid for the next year, and could potentially have deductions taken from future Tax Credit awards.

What you should do with your renewal pack

If your renewal pack has a red line across the first page and it says ‘Reply Now’ the Tax Credits renewal deadline is the 31 July 2023. You will need to follow the instructions in the pack which tell you how to renew your Tax Credits. If you don’t renew your Tax Credits award on time your payments will stop.

If your renewal pack has a black line across the first page and says ‘Check Now’, check your details to make sure they’re correct. You do not need to do anything if your details are correct. Your Tax Credits will be automatically renewed.

If you expect your income in the current year (2023/24) to decrease or increase by more than £2,500 compared with the previous tax year (2022/2023), or have other changes in household circumstances, you must tell HMRC as they may adjust your award.

You can provide or update your information either:

• using the Tax Credits Helpline, 0345 300 3900
• by posting the renewal form back to HMRC, or
• online via GOV.UK or the HMRC app.

HMRC has released a video to explain how Tax Credits claimants can use the HMRC app to view, manage and update their details.

Move to Universal Credit

The Government is planning to have replaced Tax Credits with Universal Credit by 2025.  Households who currently receive Tax Credits will receive a letter from either the Department for Communities (DfC) if you live in Northern Ireland or the Department for Work and Pensions (DWP) if you live elsewhere in the UK, telling them when to claim Universal Credit. It is important that you claim by the deadline shown in the letter to continue receiving financial support as your Tax Credit award will end even if you decide not to claim Universal Credit.

We are here to help

If you have had a change in your household circumstances or income that may affect your current Tax Credit award, or you are considering moving to Universal Credit we recommend that you speak to an independent benefits advisor before taking any action. This is particularly important before making a claim for Universal Credit. Making a claim for Universal Credit will automatically terminate your Tax Credit entitlement and you cannot return to Tax Credits, even if you find you are worse off on Universal Credit.

If you wish to find out more about what financial support you may be entitled to, contact our Family Benefits Advice Service for free, impartial and confidential advice on 028 9267 8200 or email hello@employersforchildcare.org.