HMRC starts sending out tax credits renewal packs

HMRC is sending out about 2.5 million annual renewal packs to claimants of tax credits over the next six weeks

It is important for taxpayers to check their details in the renewal pack and report any change in circumstances to HMRC.

The deadline for taxpayers to renew their tax credits is 31 July 2021. If the packs are not received by 4 June, claimants will have to contact HMRC.

HMRC recognises that many tax credit claimants will have been affected by the pandemic and may have earned less money than in previous years. It is important that they check the details contained in their annual renewal pack are correct, including income details.

Renewing online is quick and easy. Customers can log into gov.uk to check on the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Claimants can also use the HMRC app on their smartphone to:

• renew their tax credits;

• check their tax credits payments schedule; and

• find out how much they have earned for the year.

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.

If there is a change in circumstances that could affect their tax credits claims, these must be reported to HMRC. Circumstances that could affect tax credits payments include changes to:

• living arrangements;

• childcare;

• working hours; or

• income (increase or decrease).

Claimants do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours until the Coronavirus Job Retention Scheme closes.

Criminals can take advantage of tax credits renewals to text, email or phone taxpayers offering ‘rebates’ or threatening them with arrest if they do not pay bogus tax owed. Many scams mimic government messages to look authentic.

If someone contacts a taxpayer claiming to be from HMRC, asks for bank or other personal details, threatens arrest or demands that they transfer money, it might be a scam. Check GOV.UK for HMRC’s scams checklist.