In recent months, HMRC has been sending annual update packs to individuals who have applied for Tax Credits, and there are still approximately 300,000 people who have not updated their information.
The update pack for the 2023-24 tax year requires individuals to review and update their information by 31st July, or else they face the risk of payment suspension.
Anyone who has received the update pack needs to respond promptly and inform HMRC that their information has been updated.
Renewing Tax Credit
Once you receive the Tax Credit letter from HMRC, you can update your information through GOV.UK or the HMRC application.
If you find a red line on the first page with the label “reply now,” you need to confirm your personal circumstances in order to continue receiving payments.
If you find a black line on the first page with the label “check now,” you need to immediately verify that the information is correct. If the information is correct, you don’t need to take any action as the system will automatically update your Tax Credit information.
Checking Updated Information
Upon receiving the letter from HMRC, you need to check the following information:
- Changes in personal circumstances that may affect the payment amount for the next year:
- Living arrangements
- Childcare
- Work hours
- Changes in income
Tax Credits to be Replaced
In our previous articles, we mentioned that Tax Credits will be replaced by Universal Credit by the end of 2024.
HMRC has not announced a specific timeline yet, but it is certain that eligible individuals will be swiftly transferred to Universal Credit.
With only two weeks remaining until the end of July, we understand that customers may feel anxious approaching the deadline.
If you receive unexpected phone calls, text messages, or emails, please refrain from disclosing personal information or responding, and avoid downloading attachments or clicking on links.
Our team reminds you to stay vigilant against various scams and protect your privacy information and bank accounts.
