HMRC tax credit renewal letters for 2023-24

HMRC is sending out 1.5 million tax credit renewal packs between now and 15 June and it's important you understand what action you need to take.

Most tax credit claimants will just need to check the information in the pack and notify HMRC of any changes that could affect their claim. But more than 500,000 customers will need to reply to HMRC by the date shown in their letter (typically 31 July), or risk having their payments stopped.

Here, Which? explains how to renew your claim to avoid missing out on government support.

How to renew your claim

Tax credits are government pay-outs given to people who are on low incomes, are registered as disabled or have children that are dependent on them. There are two types – child tax credit and working tax credit. 

Customers who are currently receiving one or both forms of tax credit will receive an information pack in the post soon and will usually have until 31 July to take action.

 What you need to do depends on the type of renewal pack you get. There are two types being sent out: 

• A red line across the first page and says ‘Reply now’ This means customers will need to confirm their circumstances to renew their tax credits. 
• A black line across the first page and says ‘Check now’ This means customers will need to check that their details are correct. If they are, you don't need to do anything and your tax credits will be automatically renewed.

Taxpayers must report any change in circumstances to HMRC. That includes changes to living arrangements, childcare, working hours, or income increase/decrease. 

You can renew your tax credits claim on the government website by searching 'manage my tax credits' or using the HMRC app.  Alternatively, you can call HMRC on 0345 300 3900.

If you haven't received a renewal pack by 15 June, then you should contact HMRC to ask for one.

• Find out more: renew your tax credits

What happens if you don't take action?

Failure to reply to HMRC by the deadline could result in payments being stopped for the 2023-24 financial year. 

If that happens, the tax office will inform you in a letter marked TC607. You will then have 30 days to contact HMRC and explain why you missed the deadline. If you don't, you will stop receiving the support and may also have to pay back all tax credit money received since 6 April this year.

In some cases, the tax office might give you an extension until 31 January to confirm your details, but that's decided on a case-by-case basis.

How much money will I get?

Your payments are determined not only by your income and how many hours you work, but also by your personal circumstances – for instance, if you have children, are a single parent, or are disabled.

If you're eligible for the basic element of working tax credit, you can get up to £2,280. If you claim the child element of child tax credit, you can get up to £3,235.

Universal Credit has replaced tax credits for new claimants and everyone will be transitioned over to Universal Credit by 2024. You're able to do so earlier if you wish; otherwise, the Department for Work and Pensions (DWP) will send you a letter telling you when the switch-over date will be.

HMRC warns tax credit customers not to miss the deadline shown in the letter, because if you do, your tax credits will end, even if you decide not to claim Universal Credit. 

You can find a more detailed breakdown in our guide on how to calculate tax credits.

• Find out more: tax credits explained

Watch out for scams

HMRC is warning tax credit customers to watch out for messages from scammers trying to trick them into parting with personal information such as bank details.

Criminals are often quick to target people when deadlines are looming, so you should be especially wary whenever a phone call, text or email is unexpected. If that happens, do not give out private information or reply, and do not download any attachments or click on links. 

HMRC is also warning people not to share their login details with anyone else.

If you receive a suspicious text message or email, you should report it by forwarding it for free to 7726 or send to report@phishing.gov.uk.  

• Find out more: how to spot a scam

Listen to the latest Which? Money Podcast: