According to HMRC, 323,700 customers are yet to renew their tax credits, with just one month left to do so.
Tax credits offer targeted financial aid to working families, so to ensure you receive what you are eligible for, it is crucial that you renew before the deadline of 31 July.
Failure to do so by this date will result in your payments coming to a halt.
How do you renew?
Tax credits can be renewed for free via GOV.UK by searching ‘tax credits’, or via the HMRC app.
Renewing online is a fast, simple process. By logging into GOV.UK, you can check on the status of your renewal, see that it is being processed, and know when to expect a response from HMRC.
The other option to consider is downloading the HMRC app on your smartphone. Through the app, it is possible to:
• Renew your tax credits
• Make changes to your claim
• Check your tax credits payments schedule
• Find out how much you have earned for the year.
If there is a change in your circumstances that could affect your tax credits claims, these changes must be reported to HMRC.
Circumstances that could affect tax credits payments include changes to:
• Living arrangements
• Working hours
• Income (increase or decrease).
It is also important to remember that tax credits will be replaced by Universal Credit by the end of 2024.
If you move from tax credits to Universal Credit, you could be at a financial advantage. To check this, you can use an independent benefits calculator.
For help and advice with related personal tax matters, please get in touch with our team today.