Home Personal Finance HMRC is preparing to ship 1.5 million tax relief extension packages

HMRC is preparing to ship 1.5 million tax relief extension packages

HMRC is preparing to ship 1.5 million tax relief extension packages

HM Revenue and Customs (HMRC) will issue 1.5 million annual tax relief renewal packages for tax year 2023 to 2024 to customers between May 2 and June 15, 2023.

Once clients have received their annual renewal package, they have until 31 July 2023 to verify that the information is correct and notify HMRC of any changes in their circumstances that may affect their claim.

Tax credits help working families with targeted financial support, so it’s important that people don’t miss out on money they’re entitled to.

There are two types of renewal packs:

if there is a red line on the first page and says “answer now”, customers must confirm their circumstances to extend their tax credit if there is a black line on the first page and it says “check now”, customers must verify their information to be correct. If so, they do not have to do anything and their tax credit is automatically extended

Clients with more than 500,000 tax credits will need to reply to HMRC before the deadline to confirm their circumstances for tax year 2023 to 2024 or risk having their payments stopped.

Myrtle Lloyd, HMRC Director General of Customer Services, said:

Tax credits provide families with essential financial support, so it’s important that customers look out for their renewal package and renew before July 31. Search GOV.UK for ‘Manage my tax credits’ for more information on how to renew.

The renewal packages are sent in batches. HMRC reminds customers who have not yet received their parcel to wait until after 15th June before contacting HMRC about their parcel.

HMRC has released a video to explain how tax credit clients can use the HMRC app to view, manage and update their records.

How do I use the HMRC app to manage my tax credits?

Renewing online is quick and easy. Clients can log on to GOV.UK to check the progress of their renewal, ensure it is being processed and know when they hear back from HMRC. Customers who choose to use the HMRC app can:

extend their tax credits changes to their claim update their tax credits payout schedule check how much they earned this year

If there is a change in a client’s circumstances which may affect their claim for tax relief, they must report the changes to HMRC. Circumstances that may affect the payment of tax credits include changes to:

living situation childcare working hours income (increase or decrease)

At the end of 2024, the tax credit will be replaced by Universal Credit. Customers receiving tax credits will receive a letter from the Department of Work and Pensions (DWP) stating when they can claim Universal Credit. It is important that customers claim to continue receiving financial assistance by the deadline stated in the letter, as their tax credits will end even if they decide not to claim Universal Credit. However, there is no need to wait for their letter of transfer and clients can apply to transfer to Universal Credit earlier if it is convenient for them.

The government offers Help for Households. Visit GOV.UK to find out what cost of living individuals may be eligible for.

Criminals use deadlines, such as those for tax credit extensions, to trick people who may be expecting something from HMRC into sharing their banking or other personal details. If a phone call, text, or email is unexpected, do not provide private information or reply, download attachments, or click on links. It’s fine to decline, deny, or ignore requests – only criminals will try to rush or panic people. HMRC also warns people not to share their credentials with anyone else. Visit GOV.UK for more information on how to report scams or suspicious activity.

More information

Read more about extending applications for tax credits.

Customers can download the HMRC app for free from their smartphone app store.

Read more about Universal Credit to replace tax credits.

Tax credit-only customers will receive their first living expenses payment for the 2023 to 2024 tax year between May 2 and May 9. The amount paid is £301.

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