Just weeks left before benefits could be stopped – check if you’re affected
YOU could miss out on thousands of pounds a year if you don't renew your benefits within the next few weeks.
If you're claiming tax credits, you have until July 31 to file again for the year ahead.
If you don't renew your claim by the end of the month, you could be down on funds for a long time.
There are two types of tax credits - working tax and child tax credit.
Universal Credit has replaced both these for new claimants, but many have not yet made the switch over to the newer benefit.
HMRC told The Sun that, as of yesterday, the number of tax credits customers who still need to renew is 253,920.
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Around 2.5million claimants getting tax credits were sent renewal packs last year.
The amount you get is different for everyone - it depends on your income and other circumstances.
But payments can be worth as much as £3,545 for child tax credits or £3,345 for working tax credits.
If you're getting tax credits you should be sent a renewal pack to complete.
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This should have all the information you need in order to reclaim tax credits - if not, there will probably be another letter in the post, so keep an eye out.
Do I need to renew my tax credits?
HMRC sends out renewal packs explaining whether or not you need to renew or update your information.
Those that need to renew will have a letter with a red line on it and the words “reply now”.
People that need to check their details will receive a letter from HMRC with a black line and the words “reply now” on it.
But if all your details are correct - you're safe. You don't need to do anything and your tax credits will renew automatically.
If there’s a change in your circumstances, then you’ll need to tell HMRC about it.
The following changes could have an impact on your tax credit payments:
- Living arrangements
- Childcare
- Working hours
- Whether your income has gone up or down
If you haven't received a renewal pack closer to the deadline you
So how do I renew my tax credits?
When you get your pack, all the information you need in order to renew your tax credits should be there.
This will include information on how your circumstances have changed, and the income of you and your partner for the previous tax year, which ran from April 6 2021 to April 5 2022.
You can renew your tax credits three ways: online, by post or over the phone.
To do it online you need to and follow the instruction.
You can renew over the phone by calling HMRC on 0345 300 3900.
By post, you need to sill in the forms in your renewal pack, and send it to: Tax Credit Office, HM Revenue and Customs, BX9 1LR.
And what if I don't renew?
It's simple - if you don't renew your tax credits when you've been asked to, you'll risk losing all your benefits for the next year.
The deadline by which you need to have your taxes renewed is July 31.
HMRC will then send you a letter, which will say TC607 on it, and you'll have to pay back the tax credits you’ve received since April 6 this year.
You have to contact them within 30 days and tell them why you missed the deadline and you need to have a "good cause" for doing so.
You could be given until January 31 next year to confirm your details but this isn't guaranteed and is decided on by a case-by-case basis.
If you don't respond after 30 days, you could have to pay your tax credits back up to April 6 this year and your payments will stop.
What are tax credits?
If you're not sure whether you're eligible for tax credits, here's a run down on what they mean.
Tax credits are for those on low incomes and who may have a child or disability,
The exact amount you can get depends on your circumstances.
Working tax credits per year:
- Basic element £2,070
- Couple and lone parent element £2,125
- 30 hour element £860
- Disabled worker element £3,345
- Severe disability element £1,445
- Childcare element £175 or £300, depending on the number of children
Child tax credits per year
- Family element £545
- Child element £2,935
- Disability element: disabled child rate £3,545
- Disability element: severally disabled child rate £1,430
For both Working Tax Credit and Child Tax Credits you can to find out how much you could get.
Everyone getting tax credits and other legacy benefits will be moved over to Universal Credit by the end of 2024.
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You should check any changes to your entitlement - once you move across, you can't move back, so make sure it's the right thing for you first.
But, if your circumstances change and it is the right move for you, you could be able to switch over earlier than you thought.