2.1 million annual tax credits packs to be issued

As the renewal period for tax credits approaches at the end of July, HMRC is sending 2.1m tax credits customers an annual renewal pack

The packs will be sent between 25 April and 27 May, and taxpayers have until 31 July to check their details are correct and update HMRC if there has been a change in their circumstances. Tax credits help working families with targeted financial support, so it is important that people do not miss out on money they are entitled to.

There are two types of renewal packs:

·???????if it has a red line across the first page and says ‘reply now’, customers will need to confirm their circumstances to renew their tax credits;

·???????if it has a black line across the first page and says ‘check now’, customers will need to check their details are correct. If correct, taxpayers do not need to do anything and their tax credits will be automatically renewed.

An estimated 630,000 taxpayers will need to confirm their circumstances to renew their tax credits for the 2022-23 tax year.

Taxpayers can renew their tax credits for free via gov.uk or the HMRC app. Renewing online is quick and easy. Taxpayers can log into gov.uk to check the progress of their renewal. HMRC has released a video to explain how tax credits taxpayers can use the HMRC app to view, manage and update their details.

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

·???????living arrangements;

·???????childcare;

·???????working hours; or

·???????income (increase or decrease).

It is important to note that tax credits are ending and will be replaced by Universal Credit by the end of 2024. HMRC says that many people who move from tax credits to Universal Credit could be financially better off. But if individuals choose to apply sooner and move off tax credits, ‘it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces’.