Brits are urged to check their post or risk missing out on thousands of pounds in tax credits

HM Revenue and Customs (HMRC) is currently sending out tax credit renewal packs to households on benefits. You have a tight deadline to react to them. Brits are therefore urged to check their post.

The letters started being issued on May 2 and will continue to be posted until Thursday, June 15.

If you fail to respond to HMRC, you risk losing your tax credits and miss out on thousands of pounds of free cash.

Tax credit customers have until July 31 to check if the information in their renewal pack is correct.

Meanwhile, thousands claiming benefits are warned of the major change in the way they are paid.

Brits are also reminded that they are entitled to extra financial supportif they suffer from this widespread condition.

Brits on benefits are urged to check their post today

If you are in receipt of tax credits, HMRC should have sent you a renewal pack, which contains all the information you need in order to renew your tax credits.

There are two types of tax credits - working tax and child tax credit.

They're given to people who are on low incomes, are registered as disabled or have children that are dependent on them.

Although Universal Credit has replaced tax credits for new claimants, many have not yet made the switch over to the newer benefit.

But if you already claimed tax credits in the previous financial year you're able to renew them once you've received your renewal pack.

This will include information on how your circumstances have changed, and your and your partner's income for the previous tax year, which ran from April 6, 2022, to April 5 2023.

If your renewal pack has a red line across the first page and says ‘reply now’, you will need to confirm their circumstances as soon as possible to renew their tax credits.

If it has a black line across the first page and says ‘check now’, you will need to check that all the details are correct. If they are, you do not need to do anything as your tax credits will be automatically renewed.

Read more:

⋙ Millions to get extra £300 payment this year, find out if you're eligible

⋙ Millions affected by tax code errors could be due payments, here's how you can claim it

What if I don't put in a renewal claim?

Failing to reply to HMRC puts you at risk of losing your entitlement to the benefit and missing out on future payments.

The rates vary depending on your personal situation and there are a number of elements.

You can get up to £2,280 if you're eligible for the basic element of the working tax credit or up to £3,235 if you claim the child element of child tax credit.

If you don’t act, you may even have to pay back any tax credits you've received since April 6 this year.

HMRC will then send you a letter with TC607 on it to confirm this.

However, you will have 30 days to contact them and tell them why you missed the deadline.

You could be given until January 31, 2024 to confirm your details but this it's not guaranteed and decided on a case-by-case basis.

Customers can renew their tax credits for free via GOV.UK or the HMRC app.

You can also do it over the phone by calling HMRC on 0345 300 3900.

Read more:

⋙ Thousands claiming housing benefits warned of major change in payments

⋙ DWP announces change in payment date for thousands on benefits, here's what to expect

Sources used:

- The Sun: 'Urgent one-week warning for 1.5million Brits on benefits to check post – or miss out on £1,000s in free cash'