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Tax credits renewal reminder

Written by: Emma Lunn
People claiming tax credits will start to receive their annual renewal packs this week and are being reminded to check that their details are correct.

HM Revenue and Customs (HMRC) is sending out about 2.5 million annual renewals packs to tax credits claimants from this week. People should check their details in the renewal pack and report any change in circumstances to HMRC.

The packs will be sent out over the next six weeks and all customers should receive their pack by 4 June.

Tax credits help working families with targeted financial support, so it is important that people don’t miss out on money they are entitled to.

Many people receiving tax credits will have been affected by the pandemic and may have earned less money than in previous years. So, it is important that claimants check the details contained in their annual renewal pack are correct, including income details.

How to renew tax credits

Tax credits can be renewed online by logging onto GOV.UK to check the progress of their renewal, and find out when they will hear back from HMRC.

Claimants can also use the HMRC smartphone app to:

  • renew their tax credits
  • check their tax credits payments schedule
  • find out how much they have earned for the year

While most tax credit awards will be renewed automatically in 2021, the self-employed who have not filed their tax return for the 2020/2021 tax year, those in receipt of taxable social security benefit, or those who have other income may need to review their total household income and tell HMRC if the income held is incorrect.

If there is a change in your circumstances that could affect your tax credits claims, you must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

  • living arrangements
  • childcare
  • working hours
  • income (increase or decrease)

Customers don’t 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.

The deadline for people to renew tax credits is 31 July 2021. If you haven’t received your renewal pack by 4 June, you should contact HMRC.

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