Warning to parents as time is running out to reapply for tax credits

More than 500,000 Brits have just weeks left to reapply for ‘vital’ tax credits or risk them being stopped. 

Parents who receive the benefit have until July 31 to check if the information in their renewal pack is correct and respond to HMRC – or risk losing up to £3685 per year. 

More than 500,000 tax credit customers will need to reply to HMRC by the deadline for the 2023 to 2024 tax credits. 

Families should have already received their renewal pack and should notify HMRC of any changes in circumstance which may affect their claim. 

More than 500,000 customers will need to reapply for tax credits – the quickest way to check and renew your tax credits is to go online via the government website.

Myrtle Lloyd, HMRC’s Director-General for Customer Services, urged families to reapply. He said: ‘Tax credits provide families with vital financial support, so it is important that customers look out for their renewal pack and renew by 31 July.’

Each renewal letter will have either a black line which reads ‘check now’, or a red line and say ‘reply now.’

If your letter says ‘check now’, ‘you don’t need to do anything except check your details are correct. 

However, if your letter says ‘reply now’, you must renew your tax credits by July 31 2023 or risk losing your entitlement. 

There are two types of tax credits, Working Tax Credit (WTC) which is paid to people who work and are on low income, and Child Tax Credit (CTC) which is paid to people who have children. 

There are different qualifying conditions for WTC and CTC, but you only use one claim. 

The exact amount of working tax credit you get depends on your circumstances, but you are entitled to a basic amount worth up to £2,280 a year.

There are then additional elements that can increase your entitlement. For example, if you have a disability you could get up to £3,685 a year.

The quickest way to check and renew your tax credits is to go online via the government website. 

You can also renew them via the HMRC app or by phone or post. You will need your renewal pack, information about any changes to your circumstance and details of you and your partner’s income for the last tax year (6 April 2022 to 5 April 2023)

If they miss the deadline, the benefit could be stopped, and they may even have to pay some money back. 

If you don’t renew your tax credit, you will lose out on entitlements and you may have to pay back any credits you have received since April 2023. 

If this applies, HMRC will send you a letter confirming this, which will be titled TC607.

However, you will have 30 days to contact HMRC and explain why you missed the reasons for the delay – known as ‘good cause’ – before they restore your claim. 

HMRC makes decisions on a case-by-case basis but you may be given until January 2024 to confirm your details. 

Tax credit customers will also face another important deadline by the end of 2024, as tax credits will be replaced by Universal Credit. 

Universal Credit has already replaced tax credits for new claimants, but many families have not made the switch as of yet.  

Customers who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim their Universal Credit.