HM Revenue and Customs (HMRC) has started issuing annual renewal packs for 2.1 million tax credits customers, an official statement said.
The packs will be sent between 25 April and 27 May, and customers have until 31 July to check their details and update HMRC if there has been a change in their circumstances, it added.
Tax credits help working families with targeted financial support.
There are two types of renewal packs, one with a red line across the first page and says ‘reply now’. These customers will need to confirm their circumstances to renew their tax credits, HMRC said. If the pack has a black line across the first page and says ‘check now’, customers will need to check their details are correct. If correct, customers do not need to do anything and their tax credits will be automatically renewed, the department said.
About 630,000 customers will need to confirm their circumstances to renew their tax credits for the 2022 to 2023 tax year.
Customers can renew their tax credits for free via GOV.UK or the HMRC app.
HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details. According to the statement, circumstances that could affect tax credits payments include changes to living arrangements, childcare, working hours, or income (increase or decrease).
Tax credits are ending and will 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, HMRC said.
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