On 1st July 2021 HMRC issued tax credits claim reminder. Customers have until 31 July 2021 to renew their claims. The quickest way to renew is via GOV.UK. Failing to renew the claim will put a stop on any payments. It will also be unlikely the claimant to be able to apply for tax credits again.
The reason for this is because Universal Credit has mostly replaced tax credits for new claimants other than for those who get or are entitled to get a benefit known as the severe disability premium.
Moving onto Universal Credit can leave the recipients of the tax credits worse off. It is usually a five-week wait before the new payment reaches the claimant.
As a part of the renewal process the claimant will also still need to check their application to ensure nothing has changed.
The claimant can use the online service to renew their tax credits after they’ve received their renewal pack in the post. They’ll need:
- details about any changes to circumstances
- single or both partner’s total income for the last tax year (6 April 2020 to 5 April 2021)
The claimant must advise any changes in circumstances within 1 month. The claimants must report changes as soon as they happen. Otherwise they will receive the incorrect amount.
The claimant can be fined up to £300 if they do not report certain changes within 1 month, and up to £3,000 if they give wrong information.
If the claimant have not received the renewal pack by 4 June 2021, they must contact HMRC.
The claimant cannot claim tax credits and Universal Credit at the same time. The tax credits will stop if either of the partners of individual apply for Universal Credit.
HMRC are warning to be careful of unsolicited asking for money or personal information. There are many scams around where fraudsters are calling, texting or emailing customers claiming to be from HMRC.