The deadline to renew the tax credit is July 31, and all applicants must renew their tax credit entitlement annually.
If you have applied for tax credits before, you better hurry up and update them online or on the app.
Each year, HMRC will automatically send you a set of ‘renewal’ documents, and as long as you complete the required actions within the required time frame, the law will treat you as applying again for the new tax year.
You will need to follow the instructions to complete any forms sent to you, as the process is also used to complete claims for the tax year that just ended.
For the update process, please read our previous article: Have you updated your tax credit in time?
Tax Credit Updates
The tax credit is coming to an end and will be replaced by universal credit at the end of 2024.
Many people who switch from tax credits to universal credit are likely to be better off financially, and can use an independent benefit calculator to check.
Universal credit is now available across the UK. It will no longer be possible for anyone to claim a new tax credit.
Existing tax credit claimants can continue to renew their tax credit and/or add additional elements to their application.
Tax Credit Scam
HMRC is warning people to watch out for scammers. If you are contacted by someone saying they are from HMRC and want you to urgently transfer money or provide personal information, don’t panic. You should identify them and check with HMRC if the emergency mentioned actually exists.
We have previously sorted out the common forms of scams, click to read more: HMRC alerts you to new scam messages.
In addition to this, HMRC also urges people to never share HMRC login details. Please keep your identity information in your brain along with private information such as bank accounts, so that only you can know it.
Finally, to log on to the HMRC tax credit service for the first time, people need to identify themselves using two sources of evidence. UK driving licences can now be used as a form of identity.
What if I missed the tax credit update?
If you have not renewed (by sending documents to HMRC or over the phone) by 31 July 2022 (specifically refer to the date on your renewal document), your award may be terminated.
Failure to renew would mean no new claims in 2022/23. Therefore, any interim payments received from April 2022 will be considered overpayments (as there are no claims) and HMRC will recover those payments.
If HMRC terminates your award for failure to renew (and therefore ceases all payments), the statute allows reinstatement of the claim, provided you renew it within 30 days of the date you were notified of the cessation of payments (technically called a claiming account).
Outside of this 30-day period, a claim can only be reinstated if you can show that you have “good cause” for failing to renew by the deadline or the 30-day grace period, provided you do meet the later deadline of 2023.