The deadline for tax credits renewals is next Monday (31 July), and with a week to go, claimants are urged to use HMRC’s online service to get it done quickly and easily.

Tax credits are available to some working families. There are two different types: Working Tax Credit for those who work but are on a low income or are registered as disabled, and Child Tax Credits for those with children.

As they help working families with financial support, HMRC said it is important people don’t miss out on money they are entitled to.

But to date, more than 171,350 claimants who received a renewal pack with a red line across the first page with the words ‘reply now’ still need to confirm their circumstances for the current tax year to continue receiving payments.

Between 2 May and 15 June, HMRC sent out two types of tax credits renewal packs in batches to 1.5 million customers:

People whose packs had a black line across the first page and the words ‘check now’ only need to update HMRC if their details have changed.

You need to update HMRC if there is a change in your circumstance which includes a change in living arrangements, childcare, working hours or income (increase or decrease).

Renew online

Myrtle Lloyd, HMRC’s director general for customer services, said: “We know tax credits offer vital financial support for our customers so it is important that you renew by the deadline on 31 July. It is quick and easy to renew online at GOV.UK or using the HMRC app, just search ‘manage my tax credits’ on GOV.UK.”

HMRC warned that as the deadline for renewal approaches, customers hurrying to sort out their accounts could be more vulnerable to scammers.

If a phone call, text or email is unexpected, do not give out private information or reply, and do not download attachments or click on links. Customers are also urged never to share their HMRC login details.

End of the road for tax credits

Tax credits are ending and will be replaced by Universal Credit by the end of 2024.

Customers who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim Universal Credit. It is important that customers claim by the deadline in the letter to continue receiving financial support as their tax credits will end even if they decide not to claim Universal Credit.

You can use an independent benefits calculator to check if you’ll be better by switching to Universal Credit ahead of the 2024 move, though it’s important to get independent advice before doing so.