HMRC Warning

HMRC has issued a warning regarding Tax Credit renewal letters which 730,000 households will start to receive this week. 
 
The renewal notices will be sent out between May 2nd and June 19th, come in 2 types with less than 10,000 households needing to take action. 
 
The first type is any renewal notice that has a red line on it with the words “reply now.” This means that those who receive these will need to renew their tax credits. If the letter has a black line and says “check now” then recipients only need to contact HMRC if there have been changes to their details. 
 
It’s important to renew tax credits by July 31st to avoid having payments stopped. 
 
On April 5th 2025, tax credits will be phased out and replaced by Universal Credit. The Department for Work and Pensions will be moving people from the existing tax credit system onto Universal Credit. You will get a 3 month deadline by post in the form of a “migration notice” when it’s your turn.