Tax credits are available to 1.5 million 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.

The deadline to renew claims fell on Monday 31 July but HMRC confirmed to YourMoney.com that just under 77,500 customers missed this date.

HMRC will now send out letters to this group in batches informing them they’ve missed the deadline which means their payments could stop unless they get in touch.

Customers will have 30 days from the date of the notification to get in touch with HMRC – you won’t be able to renew as normal online or via the HMRC app unless you contact HMRC first (call 0345 300 3900).

If you missed the original renewal deadline and don’t respond within 30 days of receiving the notification, your payments will stop and you won’t be able to apply or renew your tax credits.

Instead, you may need to apply for Universal Credit or other benefits. This is because tax credits are ending – no new claims have been taken on since 2019 – 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 (Department for Communities if living in Northern Ireland).

That’s why it’s so important to contact HMRC as soon as possible if you missed the renewals deadline as tax credits will stop even if you decide not to claim Universal Credit.

The migration will take place next year but you can use an independent benefits calculator to check if you’ll be better off by switching to Universal Credit ahead of the 2024 move, though it’s important to get independent advice before doing so.

An HMRC spokesperson said: “Anyone who missed the deadline to renew their tax credits but intended to renew, will need to contact HMRC at the earliest opportunity, or their payments will stop.”